Low Carbon Scotland - meeting the emissions reduction targets 2010-2022: report

3. Energy Supply

3.1 To provide secure and low carbon energy supply for the long term, Scotland needs to reduce the demand for energy and decarbonise supply. Dramatic progress has already been made in harnessing Scotland's vast potential for renewable electricity generation, with generation from onshore wind increasing fifteen-fold since 2000. The next ten years will lay the foundations for exploiting the 25% of European offshore wind and wave potential held by Scotland, as well as the 10% of European potential for tidal power. Scotland is also in pole position to develop the UK's first commercial-scale carbon capture and storage ( CCS) project at Longannet, and to capitalise on its position as the EU's largest potential offshore CO ₂ store.

3.2 The Scottish Government has a clear commitment to decarbonise energy supplies, with the full decarbonisation of electricity supply by 2030 and significant decarbonisation of heat supply by 2030, consistent with the recommendations of the Committee on Climate Change ( CCC) ³⁸ . The Scottish Government's Draft Electricity Generation Policy Statement ( EGPS) ³⁹ supplements and supports this Report by providing evidence on the recent important developments in renewable electricity generation, thermal electricity generation, energy efficiency, and transmission and interconnection. It also outlines the role that the Scottish Government intends each of these areas to contribute, as part of the move to a decarbonised and secure electricity supply. This chapter summarises the proposals and policies to achieve these objectives and covers:

• Electricity generation: Renewable electricity is at the forefront of the effort to decarbonise energy supply. The recent uplift of the renewable electricity target to 80% of Scottish consumption by 2020 highlights the potential contribution from this energy source.
• Renewable Heat: The major policy interventions for the development of renewable heat are also covered in this chapter. However, the effect of renewable heat will be seen mostly in the residential, industrial and business sectors, so the estimated abatement from renewable heat is presented in Chapter 4: Homes and Communities, and Chapter 5: Business and the Public Sector.

• Other supporting and enabling measures: Energy efficiency measures are central to achieving the objectives of this Report, across the residential, industrial and business sectors, and in transport. They are covered in Chapters 4, 5 and 6. The National Planning Framework 2 and the Scottish Government's devolved consenting powers under the Electricity Act 1989 also play a key role, as can district heating.

3.3 Greater detail on all of these proposals and policies can be found in the EGPS.

Emissions trends

3.4 Although the Net Scottish Emissions Account ( NSEA) will track the trajectory of EU Emissions Trading System ( EU ETS) emissions rather than Scottish territorial emissions from power generation, the decarbonisation of the electricity sector is a vital first step to decarbonising other parts of the Scottish economy such as transport, which will become increasingly reliant on electricity.

• Emissions from the energy supply sector (power stations, refineries, oil and gas production, and coal mining) were 19.4 MtCO ₂e in 2008, or 35% of Scottish emissions. Overall, there has been a slight downward trend in emissions since the 1990s.
• The majority of emissions from the energy supply sector are covered by the EU ETS. This sector and the other emissions-intensive industries in the ETS are referred to as the "traded sector". Scottish emissions from sources in the traded sector were 23.8 MtCO ₂e in 2008 and 22.0 MtCO ₂e in 2009 ⁴⁰ .

• Emissions from the traded sector as recorded in the NSEA were 23.0 MtCO ₂e in both 2008 and 2009, showing the smoothing effect that this form of accounting has on emissions.

3.5 In this report electricity generation policies are considered as enabling policies, which, although not affecting the NSEA, are vital for the achievement of Scotland's long term goals.

Milestones

3.6 The Scottish Government has ambitious targets for 2020 for both electricity and heat generation:

• for 80% of Scottish electricity demand to come from renewable sources; and

• for 11% of Scotland's heat to come from renewable sources.

3.7 These are complemented by additional targets:

• for 12% reduction in total final energy consumption by 2020; and

• for emissions reduction from thermal electricity generating stations through CCS: CCS should be demonstrated on a Scottish coal power station by 2020; it should then be economically and technically proven by 2020 and progressively fitted to all coal and gas
  thermal plants thereafter by 2030.

EU and UK policies

Electricity generation

3.8 Energy supply policies are mostly reserved, and overall emissions are strongly influenced by a few large EU and UK schemes.
In electricity generation these include:

• UK investment in enhancements to the electricity grid ⁴¹ both onshore and offshore, to enable more renewables to be connected; and EU proposals for the development of offshore grids in the North and Irish Seas to enhance interconnection and interpenetration of electricity markets;
• EU and UK funding for CCS demonstration projects ⁴² to sequester emissions from conventional generation. The UK Government Comprehensive Spending Review ( CSR) in 2010 identified that £1 billion of funding is still available for CCS demonstration. Scotland is taking a lead in the development of CCS technology. Following the withdrawal of Kingsnorth from the UK competition, Scotland's Longannet coal fired station is now the clear frontrunner for UK funding, and could also benefit from co-financing under the EU's New Entrant Reserve competition. Gas fired power stations such as Peterhead are also eligible for co-finance under the New Entrant Reserve, and the Scottish Government welcomes the UK Government's announcement that they will be allowed to compete for funds under the UK's domestic CCS demonstration programme (projects 2-4);
• reform to the regulatory system in the UK and Scotland ⁴³ to enable electricity networks to meet increasing demand and encompass smaller scale, intermittent renewable generation sources;

• the UK Government's Electricity Market Reform exercise to assess the role that a carbon price, emissions performance standards, Renewables Obligation, CCS Levy, feed-in tariffs, capacity payments and other interventions can play in the delivery of a secure, low carbon, affordable electricity system in the long term. This was announced in the Annual Energy Statement in June 2010 ⁴⁴ , with a White Paper to be published in Spring 2011 and legislation likely thereafter. Given the importance of this reform in delivering a decarbonised Scottish electricity supply, Scottish Ministers will have a key interest in ensuring this reform delivers a desired set of outcomes for Scotland, and reflects devolved competence.

3.9 Securing full Scottish powers over the way energy markets and energy generation, transmission and supply are regulated would help develop connections to the UK and Europe for the export of energy and ensure security of Scotland's future energy supply. It would allow Scottish-specific solutions to issues such as transmission access and charging, and reinforcing Scotland's grid network (where existing regulatory frameworks work against Scottish sector interests).

3.10 As part of the CSR 2010, the UK Government outlined a proposal involving Scottish Minister's agreeing to continuing the existing arrangement of subtracting from the Scottish Departmental Expenditure Limit ( DEL) any funds drawn down from existing and future fossil fuel levy ( FFL) surpluses for renewables expenditure. This would be in return for UK Government ring-fencing for Scotland an extra £250m of UK DEL funding within the Green Investment Bank ( GIB). The UK proposal falls well short of the Scottish Government's long-argued case to have the FFL funds made immediately available in full in addition to Scotland's DEL to introduce the urgent and much needed support to accelerate key renewables industry developments in Scotland - particularly in relation to infrastructure for offshore wind manufacture and deployment. Scottish Ministers have expressed concerns relating to the lack of information available on the GIB - particularly in relation to the timeframe for development and scale of the proposed fund, the nature of the funding (grants, loans or equity etc.) and governance/oversight issues, including the role of Scottish Ministers. These views are shared by our key stakeholders in this area.

3.11 The CSR report suggests that the GIB will not come on stream until 2013-14, which seems very late. The proposed arrangement would effectively result in Scotland continuing to miss out on the FFL surplus as it simply replaces money already being spent on renewables within existing DEL. In effect, there would be no net gain for Scotland. Scotland's renewable energy potential and resource would have seen it well placed to benefit significantly from the GIB proposal which was first announced in the 2010 Budget - simply ring-fencing £250m in return for FFL would seem to offer no material benefits for Scotland.

Renewable heat

3.12 The UK Renewable Heat Incentive ( RHI) ⁴⁵ will pay installers of renewable heat equipment for each unit of heat they generate. The UK Government confirmed in the 2010 CSR that the scheme will begin in June 2011, although this timescale is likely to slip, and committed £860 million of funding over that spending review period. However the conclusions from the CSR also indicated that the RHI would have to find efficiency savings of around 20% from the previous administration's proposals. Further details on implementation are still to be announced.

Other supporting and enabling measures

3.13 UK Government policy is also supported by National Policy Statements for energy, which set out the planning framework for energy in England and Wales, and on reserved matters. They also set out the UK Government's policies for areas such as fossil fuels, gas and oil, and networks.

3.14 The EU is developing new legislative proposals for energy infrastructure development across the EU, which will look at large-scale energy interconnections and the regulation needed to support these.

3.15 The EU Renewables Directive and CCS Directive set out clear legal requirements for the development of renewable electricity and the safe geological storage of CO ₂.

The EU Emissions Trading System

3.16 The EU ETS ⁴⁶ covers almost all thermal power generation and heavy industry. Scottish Ministers are lobbying hard for the EU to increase its 2020 emissions target from a 20% to a 30% reduction against the 1990 baseline, which would require bigger reductions from the traded sector through the EU ETS.

3.17 With the current EU target of 20%, Scottish traded sector emissions are set to decrease to 15.8 MtCO ₂ in 2020. If the EU adopts a 30% target, emissions could decrease to 12.7 MtCO ₂, the exact amount depending on EU decisions about the balance of the reductions between the traded and non-traded sectors. Scottish Ministers have consistently argued that an EU move to 30% is required if Scotland is to meet its interim target of 42%.

3.18 Whatever the level of the EU target and the EU ETS cap, the price of allowances alone is not likely to be high enough to drive decarbonisation of the power sector by 2030. As the CCC has pointed out ⁴⁷ , traded sector emissions could be reduced in line with the cap by investing solely in gas-fired generation, which would lead to a system dominated by these plants. Additional policies incentivising renewable and low-carbon thermal generation are important for avoiding "lock-in" to high-carbon generation. For example, the Scottish Government has a clear commitment to the decarbonisation of gas power stations alongside coal by 2030, and has argued for CCS to be demonstrated on a gas power station by 2020.

Scottish policies

3.19 Within the EU and UK incentive regimes, Scotland plays an important role in ensuring delivery. The Scottish Government's position on the role of renewable electricity and fossil fuel generation in Scotland's future energy mix is set out in full in its Draft Electricity Generation Policy Statement, which supplements and supports this Report.

Electricity generation

3.20 Scottish policies for electricity generation include:

• the Renewables Obligation (Scotland) - an obligation on electricity suppliers to source an increasing proportion of electricity from renewable sources ⁴⁸ , which parallels the UK Renewables Obligation;
• the Renewables Action Plan ⁴⁹ , which sets out the Scottish Government's ambitions and action on renewable electricity and which is updated every six months;
• funding schemes, innovation and research centres to drive the development and deployment of renewable generation, including the Saltire Prize, the Scottish European Green Energy Centre ( SEGEC) ⁵⁰ , the European Marine Energy Centre ( EMEC) ⁵¹ , and the Wave and Tidal Energy Research, Development and Deployment Scheme ( WATERS) ⁵² ; and the revised approach to low carbon innovation set out in the Scottish Government's Low Carbon Economic Strategy ⁵³ ;
• planning consents under the Electricity Act 1989, for both thermal and renewable electricity generation, and a clear commitment to no new nuclear power stations in Scotland;
• policies to progressively demonstrate and deploy CCS: guidance requires new gas plant to be carbon-capture ready ⁵⁴ and CCS to be fitted to 300 MWe of any new coal plant from day one;

• initiatives to enhance grid interconnections between Scotland and the EU: membership of the North Sea Grid Co-ordinators' Group, which is focusing on the European priority of developing the North Sea Grid Infrastructure; and working with the Irish and Northern Irish Governments to promote grid interconnections for renewable energy in the Irish Sea and Atlantic.

Renewable heat

3.21 The Scottish Government will seek to maximise the replacement of traditional heating with low carbon and renewable heat in the next ten years, to meet its target of 11% of heat demand from renewables by 2020. The RHI will be the main financial mechanism for encouraging the installation of renewable heat in Scotland and the Scottish Government is working with DECC to ensure that the design of the scheme takes account of specific Scottish interests when it is introduced in 2011. The Government also has a role to play in supporting the construction of combined heat and power ( CHP) plants and heat networks, and is working with DECC to ensure that the RHI will include an uplift to encourage the take-up of district heating. The Government's policies for renewable heat are set out in the Renewable Heat Action Plan ⁵⁵ .

3.22 Heat generation from biomass will have an important role in delivering the 11% renewable heat target. The Scottish Government's policy is to promote the use of biomass plants for heat only or for combined heat and power, with new plants relatively small in scale. This is in order to optimise local supply, serve localised heat markets and maximise efficient use of a limited fuel source.

3.23 Wood fuel use for energy production has more than tripled in the last five years. The Scottish Government recently announced that it would review the blend of support available for biomass to establish a more appropriate balance between the support available, policy priorities and competing needs for the resource. Full details are given in the supporting Draft Electricity Generation Policy Statement.

Supporting and enabling measures

Importance for energy supply of reducing overall energy demand

3.24 Scotland's ability to supply sufficient renewable electricity and heat to meet its targets in a cost-effective way depends critically on reducing demand. High demand requires more generating capacity to be built. If this is done through renewables - for example, wind - it means that in addition to building turbines in the most suitable sites, some will have to be built in less suitable sites - for example, less windy areas. A turbine built in a less windy area will generate less electricity, and so the ratio of the cost of building the turbine to the value of the electricity it generates will be higher, pushing up the cost per unit. Alternatively, more turbines might be built offshore where it is more expensive to do so. Again, this would increase the cost of the electricity generated. Electricity demand is likely to rise in the long term as greater use is made for transport and heat - therefore energy efficiency measures to minimise this rise in demand will be crucial if electricity is to remain affordable.

3.25 Many of the proposals and policies described in this Report are aimed at reducing energy demand. The Energy Efficiency Action Plan established a target to reduce total final energy demand in Scotland by 12% by 2020, covering all fuels and sectors. The actions set out in the Homes and Communities, Business and Public Sector, and Transport chapters of this Report are key to achieving the target.

Infrastructure for offshore renewables

3.26 Infrastructure that is fit for purpose is key to enabling Scotland to fully harness its impressive offshore renewables resource (offshore wind, wave and tidal). To ensure this opportunity is not missed, the Scottish National Renewables Infrastructure Fund (N- RIF) was launched in November 2010. N- RIF, with a budget of at least £70 million over the next four years, will support port infrastructure projects that relate to major manufacturing and test and demonstration facilities for the Scottish offshore wind sector. The existence of this fund places Scotland in a strong competitive position for attracting inward investors, meeting our renewable energy targets and achieving our aspirations of being a leader in the development of offshore renewables.

Planning framework

3.27 As the Low Carbon Economic Strategy makes clear, Government has a key role in enabling development of CCS, expansion of renewables, and renewable heat and district heating through providing a supportive planning process. The Second National Planning Framework ( NPF2) sets out a spatial strategy for Scotland's development to 2030. Core parts of the strategy include realisation of the potential of Scotland's renewable energy resources, and the facilitation of baseload power and heat generation from clean, low carbon sources.

Consenting thermal electricity generation
with CCS

3.28 Planning policy also affects the development of CCS through the requirements laid out in the section 36 guidance for consenting new thermal power stations under the Electricity Act 1989 ⁵⁶ . In November 2009, the Scottish Government announced its intention to require CCS to be fitted to all new coal fired power stations as follows:

• From 9 November 2009, any application for a new coal plant in Scotland will need to demonstrate CCS on a minimum of 300 MW (net) of capacity from their first day of operation;
• Further new builds from 2020 would be expected to have full CCS from their first day of operation;
• With regard to retro-fitting of existing coal plants, a 'rolling review' of the technical and economic viability of CCS will take place with the aim of taking a final view on retro-fitting by 2018, with the likelihood of having existing plants retro-fitted by no later than 2025;
• If CCS is not seen as technically or financially viable at some stage in the future then alternatives will be considered based around the EU ETS, including the possibility of an Emissions Performance Standard;

• This policy relates to coal stations only. The Scottish Government's position on gas, oil and thermal stations is that for stations over 300 MWe, applicants will have to demonstrate that any new applications demonstrate carbon capture readiness.

3.29 The CCS Roadmap ⁵⁷ , published in March 2010, highlights that Scotland has considerable natural advantages in CO ₂ storage, alongside our world-leading research and development expertise. Our ambition is for Scotland to lead the UK and EU in the development of CCS, and to maximise our comparative economic advantage through demonstrating this technology. CCS should be economically and technically proven by 2020 and progressively fitted to all coal and gas thermal plants by 2030 to ensure full decarbonisation of the electricity supply.

Consenting renewable electricity generation and transmission

3.30 The s.36 guidance also sets out the policy for the location and consenting of renewable generation. It also sets out the Scottish Government's role and responsibility for consenting improvements to the electricity grid. Individual planning authorities have control over the expansion of renewables through their role in consenting new wind farms consistent with their spatial frameworks. The Scottish Government has commissioned an on-line resource ⁵⁸ to support planning authorities in producing planning guidance for wind farms.

District heating

3.31 District heating refers to systems that distribute heat generated in a centralized location for residential and commercial heating requirements such as space heating and water heating. District heating plants can use a wide range of heat sources or fuels and provide higher efficiencies and better pollution control than localised boilers. The Energy Efficiency Action Plan outlines how the Scottish Government will seek opportunities to promote district heating by:

• appointing a dedicated officer to take forward district heating policy and co-ordinate activity across Scottish Government;
• supporting a number of local heat mapping and feasibility projects over 2011-12;
• investigating options for training or workshops for planning authority officers; and

• pursuing options to finance district heating projects.

3.32 As part of this work, the Government is currently considering introducing a loan fund in financial year 2011-12 to support district heating. Plans are at an early stage, but the fund is likely to be open to a wider range of organisations, including local authorities developing district heating schemes. Further details will be announced in due course.

3.33 The Scottish Government is currently undertaking an assessment of the technical and economic implications of utilising waste heat from large scale power stations and CHP plants.

Other energy supply opportunities

3.34 Many of the opportunities to develop alternative sources of energy come from other areas. For example, policies to encourage woodland creation are necessary for the creation of a mature Scottish biomass market that is able to supply Scotland's renewable heat demand. Similarly, the use of Energy from Waste and biogas produced by anaerobic digestion needs to be rolled out in a planned way in order to contribute in the most effective way to Scotland's renewable energy and emissions targets.

Overall abatement from policies and proposals for Energy Supply

3.35 Table 1 shows that tightening the EU ETS cap as a result of the EU move to a 30% target could result in an additional abatement of 3.0 MtCO ₂e.

3.36 Table 2 lists the supporting and enabling measures in the Energy Supply sector.

3.37 Figure 6 is taken from the Draft Electricity Generation Policy Statement and shows the modelled emissions intensity of electricity supply in a number of indicative future scenarios.

Figure 6: Modelled CO ₂ intensity of Scottish electricity generation under indicative scenarios, 2010 to 2030.

"Base RE" refers to renewable electricity and is consistent with the 80% target.

Costs and benefits

3.38 In its first report the CCC included in its "extended" ambition policies that cost appreciably more per tonne of carbon dioxide abated than the forecast carbon price in 2020. However the report also identified that these policies are important stepping stones on the path to 2050.

3.39 Likewise most of the energy supply proposals and policies presented in this chapter are likely to cost more than the EU ETS carbon price. However the policies aim to incentivise the construction of low-carbon infrastructure to enable the transformational outcomes. In the traded sector, the EU ETS allowance price will not be sufficient incentive to achieve the necessary uptake of renewables and CCS, and in the non-traded sector, renewable heat will not pay back the additional capital costs of installation, and so requires a financial incentive to be created.

Electricity

3.40 UK and Scottish policies such as the Renewables Obligation (Scotland), Feed-In Tariffs, and CCS levy have been designed to overcome some of these obstacles. However, these schemes reward investors over time, rather than removing the need for investment in the first place.

3.41 In its submission to the Independent Budget Review in 2010, the Scottish Government estimated the cost to the Government of its energy supply policies, including district heating, to be around £900 million in the years 2011-2022. This cost presents a significant barrier, and the Low Carbon Economic Strategy sets out the Government's work on securing funding and investment given the current tight financial circumstances. On 28 and 29 September 2010 Edinburgh hosted a successful Low Carbon Investment Conference which provided a major forum for discussing potential innovative funding solutions to secure the future of Scotland's renewables and CCS industry.

Heat

3.42 Estimates of the cost of renewable heat across all sectors range from around £70 million to £160 million per year. Under the RHI, up-front costs for the installation of renewable heat generation will be met by property owners, with the incentive guaranteeing them a reasonable return on investment. Details of the RHI are still to be finalised, however the CSR outlined that over the course of the spending review period (up to 2014-15) £860 million support has been allocated to the delivery of the RHI across the UK. The exact details of the scheme are not yet confirmed.

Other energy supply opportunities

3.43 The cost of energy supply opportunities to consumers and UK and Scottish Government will be significantly influenced by the outcomes of the UK Government electricity market reform exercise. It is essential that while providing a framework to incentivise low carbon generation and minimise costs to consumers, levers to incentivise the deployment of renewable electricity are not constrained.

3.44 The Low Carbon Economic Strategy describes in detail the competitive advantage that Scotland can secure by seizing the opportunity to become a world-leader in renewables and CCS. Along with economic benefits, Scotland also stands to benefit from greater security of supply, lower energy costs than if no action was taken, and the creation of new jobs in low carbon sectors.

The need for greater powers

3.45 Greater responsibilities for energy market regulation to support renewables, CCS development and licensing, OFGEM, and energy efficiency within a wider GB and EU market would secure affordable energy supplies, and develop the contribution of energy to Scotland's economy.

3.46 Responsibility for the way energy markets and energy generation, transmission and supply are regulated would help deliver a low carbon energy sector in Scotland, develop connections to the UK and Europe for the export of energy and ensure security of Scotland's future energy supply. It would allow Scottish specific solutions to issues such as transmission access, charging and reinforcing Scotland's grid network (where existing regulatory frameworks work against Scottish sector interests) and encouraging energy efficiency. Scottish powers over energy regulation and markets would give more flexibility in consenting renewable projects, including ensuring communities around Scotland benefit from energy projects that locate near them. It would help promote trade in electricity from Scotland to the rest of the UK and Europe and enable Scotland to draw in investment in renewable energy development.

3.47 CCS is a technology in which Scotland has significant advantages including academic expertise, offshore storage capacity, and the skills and infrastructure of our existing oil and gas and power engineering sectors. Giving greater powers to Scotland, such as ensuring that funding raised from any UK Government levy on generation to fund CCS projects or long term price support mechanism to support CCS is allocated directly to Scotland, would assist the development of CCS projects and ensure that Scotland is a leader in the development of this emerging sector. CCS is currently regulated by a number of bodies including Scottish Ministers, the UK Government, and the Crown Estate. Devolving all offshore licensing, including oil and gas licensing, to Scotland would create a seamless regulatory framework for low-carbon-based energy activity in the Scottish offshore area.

Table 1: Policies for reducing emissions from Energy Supply

Policy package and description	EU, UK or Scottish policy?	Expected abatement (ktCO 2e) in 2020
EU target of 30% by 2020 Scotland is lobbying the EU to adopt a 30% target for emissions reduction by 2020, and to adjust the EU Emissions Trading System cap accordingly, and for the UK to move to a 42% target for 2020.	UK / Scottish	3,047

Table 2: Supporting and enabling proposals and policies for reducing emissions from Energy Supply

Policy package and description	EU, UK or Scottish policy?	Policy or proposal?	Further information available from
Energy Efficiency and Demand Reduction The Scottish Government has a target to reduce total final energy demand by 12% by 2020. Almost all of the energy efficiency policies in the non-traded sector will also reduce electricity demand, and therefore act to support the decarbonisation of electricity generation.	UK / Scottish	Policy	The Energy Efficiency Action Plan: http://www.scotland.gov.uk/Topics/ Business-Industry/Energy/Action/ energy-efficiency-policy/ActionPlan
Renewable Electricity
Feed-in Tariffs Subsidy for small scale generation (up to 5 MW) of electricity (by householders or small businesses) to guarantee return of investment. Funded by energy suppliers who pay people for the amount of electricity they generate.	UK	Policy	DECC website: http://www.decc.gov.uk/en/content/ cms/what_we_do/uk_supply/energy_mix/ renewable/feedin_tariff/feedin_tariff.aspx
Renewables Obligation (Scotland) Electricity suppliers must purchase and submit Renewables Obligation Certificates ( ROCs), issued by renewable generators, proportional to the energy they supply, or make an equivalent payment to Ofgem.	Scottish	Policy	Scottish Government website: http://www.scotland.gov.uk/Topics/Business-Industry/Energy/RenewablesObligation
Renewables Action Plan Describes all of Scotland's policies for encouraging and supporting renewable generation. Updated every six months.	Scottish	Policy	Scottish Government renewables policy webpage: http://www.scotland.gov.uk/Topics/Business-Industry/Energy/Energy-sources/19185/17612
Carbon Capture and Storage
EU and UK funding for CCS demonstration projects Scotland has bid for funding of CCS projects by the EU and UK. The demonstration project at Longannet is now the clear frontrunner in the first UK competition.	UK	Proposal	Scottish Government Electricity Generation Policy Statement: http://www.scotland.gov.uk/egps
Thermal Guidance Scottish Government guidance on the criteria it will apply in consenting new thermal power stations. Any new coal plant will be required to operate CCS on at least 300 MW of its capacity, increasing to 100% by 2025.	UK	Policy	Scottish Government website: http://www.scotland.gov.uk/Topics/Business-Industry/Energy/Infrastructure/Energy-Consents/Thermal-Guidance/Thermal-2010
Electricity Grid Enhancements Working with the UK and other European countries to ensure electricity grid is ready for a future with many more renewables. Electricity Grid reinforcements are designated as a National Development in the National Planning Framework.	UK	Policy	Scottish Government National Planning Framework webpage: http://www.scotland.gov.uk/Topics/Built-Environment/planning/National-Planning-Policy/npf/
Supporting Clean Baseload Generation through SEGEC The Scottish European Green Energy Centre ( SEGEC) was officially opened on 17 August 2009 to support Scottish organisations in the green energy sector to gain maximum benefit from engagement with Europe.	UK	Policy	SEGEC website: http://www.segec.org.uk/