Towards an Industry for Green Heat: heat in buildings supply chains delivery plan

Chapter 2 : Roles and Responsibilities

The Scottish Government

The Scottish Government largely has devolved responsibility for heat and energy efficiency matters and has a statutory commitment to deliver Scotland’s emissions reduction targets as set out in the Climate Change (Scotland) Act 2019[xiii], as well as the statutory targets set out in the Heat Networks (Scotland) Act 2021[xiv]. We fund a number of heat, energy efficiency and fuel poverty programmes with a commitment to make available at least £1.8 billion of capital funding during this Parliamentary term.

We are responsible for bringing forward a regulatory framework which will drive the pace and scale of the Green Heat transition in the years ahead. We are also responsible for working with the UK Government in areas of reserved policy such as regulation of the gas and electricity networks, energy market pricing and consumer protection.

Heat and Energy Efficiency Scotland

Heat and Energy Efficiency Scotland has been established as a virtual Agency working within the Scottish Government’s Directorate for Energy and Climate Change. This brings together a range of key delivery functions including existing advice and support schemes into a single organisational structure and will help us drive an increase in the scale and pace of the heat transition in the coming years.

The Agency has a remit to accelerate transformational change in how we heat and use energy in homes and buildings, aid public understanding and awareness, and co-ordinate delivery of investment. The Agency will transition to a dedicated body by 2025.

Working with existing bodies, Heat and Energy Efficiency Scotland will have a role in helping to co-ordinate and build the necessary supply chains and associated skills required to deliver the Heat in Buildings Strategy.

Scotland’s Enterprise Agencies

Scotland’s Enterprise Agencies include Scottish Enterprise (SE), Scottish Development International (SDI), Highlands and Islands Enterprise (HIE), and South of Scotland Enterprise (SOSE). Each have a role in supporting businesses and communities across their jurisdiction to create quality jobs and develop local economies.

In the Green Heat transition, our enterprise agencies have a responsibility to support businesses, maximise value capture by Scottish companies and support industrial innovation and collaboration to solve complex challenges in response to market needs.

Scottish National Investment Bank

The Scottish National Investment Bank launched in November 2020. The Bank invests in line with its three strategic missions – to achieve net zero, tackling place-based inequality, and harnessing innovation – and seeks to invest where the private market is unable to provide all of the capital that a business or project requires.

The Bank can invest from £1 million up to £50 million in projects or businesses to support their growth or development; and can invest through both debt and equity investment. It has a particular emphasis on supporting businesses to grow and scale, supported by its ability to provide patient investment and long-term capital.

The Bank invests on commercial terms and aims to attract private sector funds to co-invest alongside its public sector capital.

The Scottish National Investment Bank sees an important role for itself in the transition to net zero heat, and strong alignment to its missions. It has already made investments in the Green Heat supply chain and continues to seek opportunities to invest across the innovation, manufacture, installation, and maintenance of products and services relating to net zero heat.

Skills Development Scotland

Skills Development Scotland (SDS) is Scotland’s national skills body, working with people and businesses to help them apply their skillsets. In the Green Heat transition SDS is responsible for informing and supporting a shared understanding of skills requirements to inform a multi stakeholder response across academic pathways, work based training and upskilling and reskilling. They are also responsible for administering Modern Apprenticeships on behalf of Scottish Government.

Scottish Funding Council

The Scottish Funding Council (SFC) is the national body for funding teaching, learning and research in Scotland’s Colleges and Universities. SFC have also invested in Scotland’s Innovation Centre network to support collaboration between industry and university research.

In the Green Heat transition, SFC have a key role to play in terms of ensuring that colleges and universities are equipped to deliver the courses required to reskill and upskill the existing workforce, as well as providing the necessary learning that will support new entrants into the Green Heat sector.

Energy Saving Trust

Energy Saving Trust are an independent organisation and trusted voice on energy efficiency and heat decarbonisation. Energy Saving Trust currently deliver a number of funding and advice programmes under contract to the Scottish Government and are also funded to work with the supply chain to build awareness of the Green Heat Transition.

Built Environment – Smarter Transformation

Formerly the Construction Scotland Innovation Centre, Built Environment – Smarter Transformation (BE-ST) are supported by the Scottish Funding Council and Scotland’s Enterprise Agencies. Their aim is to accelerate the built environment’s transition to zero carbon by bringing together the construction industry and key stakeholders from across built environment ecosystems - academia, government, public & private sector clients and working alongside the people of Scotland to drive transformational change. BE-ST offers a platform that supports innovation and collaboration and can provide specialist advice, support, project funding and training programmes to organisations seeking to transition into the Green Heat sector.

Energy Skills Partnership

Energy Skills Partnership (ESP) is the Scottish college sector organisation that works with industry and government to ensure that the energy and construction sector’s skills needs are met through an extensive offer in colleges across Scotland.

In the Green Heat transition, ESP have a key role to play as the interface between government, agencies and industry to meet national and regional skills needs aligned with emerging technologies, the Climate Emergency and the Just Transition to Net Zero.

Scotland Excel

Scotland Excel are the Centre of Procurement Expertise for the local government sector and have recently launched the Energy Efficiency Contractors Framework, designed to help the public sector cut carbon emissions, tackle fuel poverty and create warmers homes.

Scotland Excel have key role to play in harnessing the power of procurement to build the Green Heat sector, whilst streamlining delivery for public sector buyers and driving social and economic benefits through their contracts.

Scotland Excel is a critical partner to stimulate change within supply chain, offering support to existing and future framework contractors to transition to deliver Green Heat products and services to the market.

Buyers

Ultimately, demand for Green Heat products and services will be driven by property owners across the country. However, in the early stages of the transition a number of key anchor segments such as the new build sector, local authorities and social landlords have a key role to play as large scale buyers. We are working with such organisations to support their own Green Heat ambitions, and ensure this translates into a broader development of the supply chain to the benefit of the economy at large.

Industry and Supply Chain

Developing the Green Heat supply chain will mean industry creating jobs, investing in workforce, driving innovation and supporting cultural and business model change. The supply chain, particularly consumer facing roles such as installers and retrofit coordinators will have a key role as trusted voices in the consumer journey towards Green Heat.

We will continue to work closely with trade associations and representative bodies to engage broadly with industry, but we will also work directly with innovative companies and individual change leaders across the sector.