Energy strategy: position statement

Scotland's Energy Strategy

In 2017, we published Scotland's Energy Strategy: The Future of Energy in Scotland which set our vision for how the energy system in Scotland would look in 2050. That vision was that we would have:

"A flourishing, competitive, local and national energy sector, delivering secure, affordable, clean energy for Scotland's households, communities and businesses."

Since the publication of the 2017 strategy, the Scottish Government has committed to achieving our ambitious targets of net zero greenhouse gas emissions by 2045 and a 75% reduction by 2030. In light of the economic crisis created by the COVID-19 pandemic, the Scottish Government is now striving to deliver a green economic recovery aligned to those net zero ambitions. Our policy direction remains guided by the three core principles set out in the 2017 strategy. Those principles are that:

• we take a whole-system view;
• we deliver an inclusive energy transition; and
• we deliver a smarter local energy model.

Whole System View

In our recent Climate Change Plan Update (2020) we committed to lay out a coordinated vision for the whole energy system within Scotland's refreshed energy strategy, which the current government intend to publish later this year if re-elected. This vision will be based on our best understanding of the technologies and options available today, and focused on delivering our economy-wide emissions reduction targets in way that ensures we boost economic growth and deliver on wellbeing outcomes for wider society.

Action We Are Taking:

To inform a coordinated vision for the whole energy system we are currently developing a set of whole system scenarios for Scotland during 2021, which will explore the timelines and interdependencies in each of these options.

Inclusive Energy Transition

As we move forward in our journey to net zero greenhouse gas emissions, we are fully aware that achieving our ambitious climate change targets will require a national endeavour and we don't underestimate the importance of inclusivity. As we emerge from the health and economic crisis created by the Covid-19 pandemic, we want to ensure that we build a greener, fairer and more equal society and economy. As set out in our Programme for Government, the recommendations from the Just Transition Commission are already informing our policies designed to deliver a green economic recovery.

Our recently refreshed Scottish Energy Advisory Board and its Strategic Leadership Groups and supporting groups, such as the Scottish Offshore Wind Energy Council and the Scottish marine Energy Industry Working Group are in place to support the Scottish Government in the delivery of our current and any future energy strategy with a strong focus on ensuring an inclusive transition is a key component of the board's work.

Action We Are Taking:

We have committed £1.6 billion of public funding over the next five years to decarbonise Scotland's buildings, which will reduce emissions, address fuel poverty and create up to 5,000 jobs in delivery of projects and across the supporting supply chain.

Our draft Heat in Buildings Strategy commits us to publishing a set of guiding principles in the final version to jointly deliver our fuel poverty and heat decarbonisation objectives which will underpin our commitment to inclusivity.

Our Heat Networks (Scotland) Bill commits us to challenging new statutory targets for delivery of heat networks by 2027 and 2030, and to development of a longer term target for 2035 and we have committed to produce a Delivery Plan for heat networks by April 2022 in parallel with progressing the supporting secondary legislation required to complete the regulatory framework by the end of 2023.

The Oil and Gas and Energy Transition Strategic Leadership Group played an intrinsic role in the design of the £62 million Energy Transition Fund which will benefit the energy sector and supply chain across Scotland by working with local businesses to support sustainable jobs and maximise inclusive economic growth across the country.

A Smarter Local Energy Model

As the way we generate, supply and use our energy continues to change, we remain committed to ensuring that local energy solutions meet local energy needs.

Our recently published Local Energy Policy Statement and accompanying Delivery Framework, published in early 2021, sets out an approach we wish to see adopted by those participating in or developing projects. It is underpinned by ten key principles, that seek to support a just, inclusive energy transition - one that has people at its centre, supported by strong partnership of working and collaborating at a local level.

Action We Are Taking:

We are continuing to consider the principle of a smarter local energy model through our support for community-led local renewable energy projects in the form of our flagship Community and Renewable Energy Scheme (CARES) with a new four year contract period starting in April 2021.