Scotland's energy sector - unlocking investment: joint business plan

Annex: Decarbonising Transport

Barriers and actions

Barrier #1: Network and Renewable Generation Investment Required to Enable Electrification of Transport

Stakeholders: Scottish Government; UK Government; Ofgem;

• Addressing the barriers as set out in slide 8 and 13 covering decarbonisation of electricity is essential in order to ensure the infrastructure and renewable generation are available to support the electrification of transport, in particular:
  • Allowing investment, including anticipatory investment, in electricity networks.
  • Delivery of public charging points based on ensuring fair access for all.

Barrier #2: Need to Develop Support for the Effective Deployment of Green Hydrogen

Stakeholders: Scottish Government; UK Government;

• Ensure appropriate deployment of funding to support the development of green hydrogen projects.
• Ensure transparency about the GHG and CO2 implications of blue hydrogen projects.
• Ensure Renewable Transport Fuel Obligation (RTFO) provides a stable long-term signal for investors.
• Sector level targets similar to those for the phase out of new petrol and diesel vans and cars to stimulate take-up.

Results

• Creation of export manufacture/assembly opportunities for Scotland via deployment of green hydrogen in areas such as heavy duty vehicles.
• Creates jobs and sends clear signals to Scottish supply chain.
• Drives Electric Vehicle (EV) adoption in line with Scottish Government targets.
• Delivers efficient and effective electrification of rail in line with Scottish Government aims.
• Potential for sectors such as shipping to achieve zero carbon in a very short timeframe.
• A DNO led public charging model, ensuring no areas are left behind reduces costs for consumers via Distribution Network Operators (DNO) delivery.
• Stimulates innovation and deployment of low carbon solutions.
• Hydrogen can provide a solution to decarbonise 'hard to decarbonise' areas such as heavy transport.

Example projects

• Roll Out of DNO Led Public Charging (Scotland and GB) - First pilot project PACE is demonstrating the benefits of an alternative public EV charger delivery model with significant savings and replicable models. Scaling up PACE could deliver:
  • £26m connection savings in Scotland calculated on 10% of all publicly available chargers by 2050.
  • £310m connection savings across GB calculated on 10% of all publicly available chargers by 2050.
• Green Hydrogen for Glasgow - ScottishPower's partnership offers an 'end to end' market solution for reducing vehicle emissions through the provision of green hydrogen. A proposed green hydrogen production facility will be operated using wind and solar power to operate a 10MW electrolyser. The project aims to supply green hydrogen within the next two years, to support fleets of heavy duty vehicles.