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Renewable Energy
A debate on motion S2M-1762, in the name of Alex Neil, on behalf of the
Enterprise and Culture Committee, on renewable energy in Scotland
The Deputy Minister for
Enterprise and Lifelong Learning (Allan Wilson): Before I address the terms
of the motion, I would like to express my admiration for the Enterprise and
Culture Committee and its inquiry into renewable energy, which was described
so ably by Mike Watson. The conduct and expertise of the committee members,
as well as the participation by so many bodies and individuals from across
Scotland and the United Kingdom, have helped to shine a light on this
important policy area. Such focus cannot be underestimated and all who were
involved deserve credit from Parliament for the part that they played. It is
probably fair to say that the committee has gone from strength to strength
since John Swinney and I were members of the Enterprise and Lifelong
Learning Committee all those years ago.
It is good to be here today and I am pleased to take part in this debate. I
firmly believe that the renewables policy that we have in place will
continue to deliver environmental and economic benefits to Scotland. I
believe that there is a great deal of common ground—dare I say consensus?—in
the chamber regarding renewable energy. That came out in Mike Watson's
speech and strongly in the committee's report. Consensus is very important
in the new politics here in Scotland, and I think that we in Parliament
share a responsibility to ensure that that consensus is not shrouded or
drowned out by detailed debate on how our renewables policy might be
delivered.
The motion expresses welcome support for the ambitious targets that we have
set. Those targets are often misinterpreted, innocently or otherwise, but
they underline our potential to meet our energy needs from clean—
Phil Gallie: Will the minister give way on the issue of targets?
Allan Wilson: Certainly.
Phil Gallie: Page 24 of the committee's report states that neither the
Department of Trade and Industry nor the supply industry can identify what
generation requirements will be by 2020. How then can the minister set a 40
per cent target for renewables, especially when I have yet to hear an
explanation from ministers on whether or not they are talking about sent-out
figures or generation-capacity figures?
Allan Wilson: We set targets for good reason—so that we can meet our
renewables obligations. The environmental benefits and the benefits in
economic performance are manifest. The further we move towards securing
those targets, the greater the benefits will be for our country. Our targets
demonstrate to the renewables industry at home and abroad that Scotland
can—as Mike Watson mentioned—become a renewables powerhouse in the European
context and in a global context. Developers and investors alike are already
reacting to what I believe is a very strong signal to the market. I would
have thought that that would have been welcomed by the Tories.
Richard Lochhead (North East Scotland) (SNP): The minister talks about
Scotland's potential to become a "renewables powerhouse", but does he accept
that the current proposals of the National Grid Company plc—which are being
considered by Ofgem and which discriminate against Scottish renewable
projects because of transmission charges—would pull the rug from under all
our efforts to create a renewables industry in Scotland?
Allan Wilson: I understand the point that Mr Lochhead makes and I assure him
that we are involved with our colleagues in the Scotland Office, the DTI and
elsewhere to ensure that the British electricity trading and transmission
arrangements benefit Scotland. However, Mr Lochhead cannot have his cake and
eat it. BETTA is absolutely fundamental to our being able to develop the
renewable energy potential to which I have referred.
Consistency in the message is very important, although that is probably an
alien concept to the nationalists. I will happily place on record again
today the point that we made in our initial submission to the committee,
that my predecessor made again when he appeared before the committee in
March, and which was reiterated in our subsequent response to the
committee's report: we are determined to support the development of as wide
a range of renewable sources as possible. Work is already under way to
ensure that offshore wind, wave, tidal, hydro, solar and biomass power can
join onshore wind in making a real contribution to meeting our future energy
needs.
Christine May: The minister mentioned the Executive's welcome initiatives on
biomass. Does he accept that there is some concern among producers about the
decisions and attitudes of the Office of Gas and Electricity
Markets—Ofgem—particularly in relation to the licensing of off-site blending
of biomass with coal for co-firing purposes? Will he undertake to examine
that and to have discussions with his colleagues at Westminster?
Allan Wilson: I am aware of those concerns. I understand that Scottish Coal
and Ofgem, with the Executive as mediator, are seeking solutions to the
problems in respect of blending to which the member referred. I hope that
those discussions will prove to be fruitful.
We agree that wave and tidal power have tremendous potential and need
additional support. The successful operation, and growing reputation, of the
European Marine Energy Centre in Orkney, which we have funded, is crucial,
but it is part of a chain of measures. We have begun work with EMEC to
position it as the global centre for marine energy operating and safety
standards, in line with the recommendations of the forum for renewable
energy development in Scotland, or FREDS.
Murdo Fraser (Mid Scotland and Fife) (Con): Will the minister give way?
Mr Jamie Stone (Caithness, Sutherland and Easter Ross) (LD): Will the
minister give way?
Allan Wilson: I am spoiled for choice. I give way to Murdo Fraser.
Murdo Fraser: I press the minister on his point about wave energy. Will he
tell us what projects are available, perhaps funded by the enterprise
companies, to encourage entrepreneurs to perfect technology for wave energy?
I ask that question specifically because a constituent who came to see me
last week applied for SMART: Scotland funding for a wave energy project but
was told that he could not have it because projects have to be demonstrably
commercially and financially viable. Clearly, he cannot demonstrate that
because it is an experimental project. Are other sources of funding
available for people in that situation?
Allan Wilson: I am not familiar with the detail of the individual case to
which the member referred, but I am happy to write to him. As I understand
the position, the £50 million DTI funding gives opportunities to explore
potential commercial success as well as to develop tried and trusted
commercial ventures. I hope that those efforts and others like them will
strengthen our marine energy sector and attract more investment from
overseas. Scotland could and should become a byword for marine energy
success in the future.
Mr Stone: Mike Watson referred to hydrogen power. Given that Arnold
Schwarzenegger is having a hydrogen highway put in in California, will the
minister tell us something about that technology? I believe that it will be
crucial to renewable energy.
Allan Wilson: There is a school of thought that says that hydrogen will
produce a large part of the energy that we need in the future. There is work
in my constituency that involves potential suppliers of energy who are
involved in hydrogen production. That is an important element of developing
our renewable energies potential; I am keen to work with the committee and
others on that.
John Scott (Ayr) (Con): Will the minister give way?
Allan Wilson: No. I have done reasonably well so far in taking
interventions.
Our forum for renewable energy development continues to produce results.
FREDS envisages the Executive, the renewables industry and academia working
side by side to promote the renewables agenda and emerging technologies in
particular. We have already begun to implement the recommendations of the
FREDS marine energy report and similar papers will be published during the
next few months that will set out road maps for the promotion of biomass and
hydrogen technology.
The £5 million that we have spent during the past three years has seen wind,
biomass, solar and geothermal heat and power technologies installed in homes
and communities throughout Scotland. We are delighted with the progress,
popularity and effectiveness of that scheme and we plan to make an
announcement on its future in the next few weeks. I was delighted to grant
consent earlier today to two new developments; one at Braes of Doune near
Stirling and the other at Farr in the Highlands. Those will involve 200
megawatts of new renewable generating capacity and represent a strong and
positive signal for the market in Scotland.
Mr John Swinney (North Tayside) (SNP): Will the member take an intervention?
Allan Wilson: If the member does not mind, I would like to make progress
It is also worth noting that those large developments drew only a tiny
handful of objections, which betrays the myth that the public at large is up
in arms against wind power. It also exposes any calls for a moratorium as
hollow and unnecessary.
Mr Swinney: Will the minister give way?
Mary Scanlon (Highlands and Islands) (Con): Will the minister give way?
Allan Wilson: If members will calm down, I hope that what I am about to say
will be welcomed by all members in the chamber.
Our position at this time remains that current planning guidelines provide a
sufficiently robust mechanism against which to assess all renewables
development proposals. The guidelines are due to be reviewed shortly under a
previously established timetable. We have also made it known that we intend
to consult on improving the procedures under section 36 of the Electricity
Act 1989. Given that it is vital that those reviews have buy-in from all the
relevant people, we intend to draw together representatives of all the
interested parties—including local authorities, key environmental
stakeholders, regulators and the industry—to take part in a forum to support
the planned reviews. In doing that, we can ensure that our planning and
consent procedures remain as robust and responsive as possible and that we
continue to progress towards achieving our ambitious renewable energy
targets. In the meantime, developments will continue to be judged against
our existing planning and consent guidelines.
Mr Swinney rose—
Allan Wilson: I am aware of the continuing uncertainty over the new British
electricity transmission and trading arrangements—known as BETTA—and of the
concern about the revised transmission charges.
I give way to Mr Swinney.
The Deputy Presiding Officer (Trish Godman): The minister is in his last
minute, so the member must be quick.
Mr Swinney: I welcome the review of the Executive's existing planning
policies, but will the minister commit to issuing guidance on situations in
which there is congestion because of the number of applications in a small
geographical area, which is causing enormous anxiety in different parts of
Scotland?
Allan Wilson: My announcement today, which I am sure Mr Swinney welcomes,
helps to build on the consensus that exists in Parliament. We all want
Scotland to benefit from renewable energy, but not at an unacceptable cost
to the environment. I have asked my officials to develop plans for an
advisory forum that will bring together experts from throughout Scotland who
have an interest in renewable energy. In addition, the forum might include
heritage bodies, environmental groups, local authorities and the industry.
The forum will consider the issues to which the member referred, together
with the other issues that lie out there.
In both my environment and enterprise portfolios, I have learned that there
is consensus, which I hope to build upon, on the need to achieve our targets
for producing energy from renewable sources while protecting our natural
environment for future generations. We remain committed to supporting
renewables and to protecting our environment. We intend to create new jobs
and to inspire new economic activity. In doing so, we will respond to the
committee's favourable report by leading Scotland towards a sustainable
energy future.
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