Scotland the Hydro Nation: annual report 2015

Section 1: Background: The Hydro Nation Duty

This Second Annual Report sets out the steps that have been taken since the publication of the first report in August 2014, to meet the duty placed on Scottish Ministers under The Water Resources (Scotland) Act to develop the monetary and non-monetary value of Scotland's water resources.

The Scottish Government remains committed to developing and consolidating our strategic vision of Scotland as the world's first 'Hydro Nation.' The First Annual Report set out the ambition of establishing a 'water economy' at the heart of our national and international identity and we have been working with our partners to deliver against that ambition through increased innovation support for the sector, building our knowledge base, delivering more efficient resource use and taking Scottish expertise on regulation, governance and operational matters to international markets and partners in Europe and further afield.

The Hydro Nation Forum, Chaired by Keith Brown MSP Cabinet Secretary for Infrastructure, Investment and Cities, continues to provide guidance and advice and to track progress at its biannual meetings. With the Forum's help we continually review our overarching strategy to ensure it is fit for purpose and are working with the Forum to ensure that its structures and ways of working can best support the strategy.

Scotland The Hydro Nation

Scotland is fortunate to have a significant and high-quality water resource. Water is of central importance to the economy of Scotland, both as a sector in its own right and as a critical resource in the manufacturing, agriculture, food and drink, tourism and energy sectors. The estimated market size of the sector is £1.8 billion, including Scottish Water. This equates to approximate employment levels of 8,500. Scottish Water's share alone is 3,600 employees and a turnover of £1,100 million ^[1] .

There is the potential to support, attract and develop opportunities for businesses or industries for whom a large volume of water is a critical resource. Access to a highly-developed, diverse and specialised supply chain provides assurance that Scotland is an excellent place for water-sector businesses to set up shop. All of this is underpinned by a distinctive and internationally-respected model of governance and regulation. Scotland's Water Capability Statement, published by Scottish Development International, highlights key sectoral strengths, with examples of how Scottish companies, universities and research bodies support the developing water economy in Scotland and beyond.