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Scottish Energy Strategy: the Future of Energy in Scotland

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Scottish Energy Strategy: the Future of Energy in Scotland Scottish Energy Strategy: The future of energy in Scotland December 2017 Scottish Energy Strategy 3 Contents Ministerial Foreword 02 Executive Summary 04 Chapter 1: A 2050 Vision for Energy in Scotland 10 Chapter 2: Scotland’s Changing Energy System 16 Chapter 3: Scotland’s Route to 2050: Targets, Priorities and Actions 32 Chapter 4: Scotland’s Economic Opportunity 74 Chapter 5: Monitoring and Engagement 86 Scottish Energy Strategy Ministerial Foreword Choices affecting our Low carbon and renewable energy already energy future are among supports thousands of jobs across Scotland, the most important we face. generating billions of pounds in turnover. Scottish Scotland’s social and yards and workers are already fabricating and economic well-being, and manufacturing some of the components that will the sustainable productivity power our energy future; our supply chains are and competitiveness of our growing, and the opportunities for innovation are economy, depend upon a secure, affordable immense. In the future, demand for low carbon and reliable energy supply. Our energy sector skills, goods and services will grow both here in also provides high quality jobs, and a vibrant Scotland, and overseas, offering ever greater climate and opportunity for innovation. export opportunities. The decisions and actions which we take now will Delivering the goals and policies in this Strategy shape the Scotland that future generations will can build on what’s been achieved to date – live and work in, visit and enjoy. Our vision, set out creating more jobs, more investment, and a in this document, strengthens our international stronger, more sustainable Scottish economy. reputation for sustainability – we are an ambitious country of outstanding natural beauty, Scotland’s electricity production has changed determined to build on our reputation as a enormously since the turn of the century, sparked renewable energy powerhouse. by the huge and welcome increase in new renewable generation. We are well on the road This is our Energy Strategy for the period through to fully decarbonising our electricity system in to 2050 – the result of the lengthy consultation Scotland. The challenge facing us now is to and series of discussions which we embarked ensure a similar decarbonisation of our energy upon almost a year ago. It maps out a major requirements for sustainable transport – and to transition over the next three decades – a deliver a well-balanced system capable of transition which is fully consistent with our climate providing secure and affordable energy to meet ambitions, and with Scotland’s Climate Change Scotland’s needs. Act. It embodies and reflects our objective to create a dynamic, sustainable and inclusive Scotland is taking a leading role in promoting economy. electric and other low-emission vehicles – with an ambition to phase out the need for new petrol Energy represents an enormous economic and and diesel cars and vans by 2032. This is as much industrial opportunity for Scotland. Our oil and an energy system ambition as a transport one. gas industry and heritage will remain the We will need to develop and manage the bedrock of our future energy system – supplying necessary charging and other network energy, but also expertise and skills to support our infrastructure, while building awareness and transition to a different, low carbon energy future. confidence on the part of consumers. The challenges here are more than matched by the economic opportunity and environmental benefits which success will bring. Scottish Energy Strategy 02/03 We have much more choice now over how we Our progress in this area is encouraging. produce and consume the energy we need. However, continuing to improve the energy Solar panels or small wind turbines can now help efficiency of Scotland’s buildings – both domestic meet energy demand at a household or and non-domestic – and, over time, community level. Groups of consumers may decarbonising the heat supply to those buildings, choose to invest jointly in new local energy providing warmer homes and better outcomes solutions in the future such as renewable for our consumers, remains a major challenge. It electricity or heat networks, using gas and is a challenge that we are determined to meet. electricity networks only as backup to local supplies. We are grateful to all who have taken part in the process which has led to this Strategy’s Developments in storage technology, and its publication. It is not the end of the story; it is a live application at a range of scales – from batteries document – a route map, which sets out the first (including the role of electric vehicles) at a steps on a journey. A number of external factors household or local level, to the continuing value and developments will influence our progress; of Scotland’s existing and new pumped storage however, as Abraham Lincoln once said – “the hydro – will also have a major influence on our best way to predict the future is to create it.” future energy system. We look forward to continuing to work with you The pace and extent of these disruptions in the all. energy market create benefits for consumers, but there will be challenges too. This is where PAUL WHEELHOUSE MSP government, at all levels, can make a real Minister for Business, Innovation and Energy difference – and the Scottish Government is determined to do so. We will make sure that the benefits are universal, and that change works for everyone across our society – preventing new forms of social exclusion amongst those less well equipped to take advantage of opportunities created by changing markets and smart technologies. And we know too that energy remains unaffordable for far too many in Scotland, creating hardship for individuals and families. Energy prices and market failures play an obvious part in this – but we also have a building stock in parts of Scotland that is old and, all too often, profoundly wasteful in energy. Paul Wheelhouse MSP at the ‘Surf n Turf’ hydrogen fuel cell training compound, Kirkwall, Orkney. (Credit: Colin Keldie) EXECUTIVE SUMMARY Hywind Scotland Pilot Park offshore wind farm (Credit: Jan Arne Wold, Statoil) Scottish Energy Strategy EXECUTIVE SUMMARY Summary: A 2050 Vision for Energy in Scotland This is our 2050 vision for energy in Scotland: OUR VISION A FLOURISHING, COMPETITIVE LOCAL AND NATIONAL ENERGY SECTOR, DELIVERING SECURE, AFFORDABLE, CLEAN ENERGY FOR SCOTLAND’S HOUSEHOLDS, COMMUNITIES AND BUSINESSES. This Strategy will guide the decisions that the Our vision remains guided by three core Scottish Government, working with partner principles: organisations, needs to make over the coming decades. Realising this Strategy’s vision will create opportunities for suppliers and consumers of energy. It will support work already planned or underway to achieve our long term climate change targets, and to address the impact of AN INCLUSIVE poor energy provision. A WHOLE-SYSTEM VIEW ENERGY TRANSITION No-one can be certain what that future system will look like. However, we should be confident and ambitious about what we can achieve and deliver over the short to medium term, and focus on the areas where we know there are likely to be low or no regrets options. A SMARTER LOCAL ENERGY MODEL Scottish Energy Strategy 06/07 Summary: 2030 Whole-System Targets The majority of consultation responses identified our targets as a key element of the Strategy – THE EQUIVALENT OF and central to the ‘whole-system’ approach. 50% OF THE ENERGY FOR SCOTLAND’S Our energy supplies, and the ways in which we 50% HEAT, TRANSPORT control and manage our consumption of that AND ELECTRICITY CONSUMPTION TO energy, are equally important factors. BE SUPPLIED FROM RENEWABLE SOURCES This Strategy therefore sets two new targets for the Scottish energy system by 2030: • The equivalent of 50% of the energy for Scotland’s heat, transport and electricity +30% consumption to be supplied from AN INCREASE BY 30% IN THE PRODUCTIVITY renewable sources. OF ENERGY USE ACROSS THE SCOTTISH • An increase by 30% in the productivity of ECONOMY energy use across the Scottish economy. Fair Isle, Shetland Scottish Energy Strategy SCOTLAND’S ENERGY PRIORITIES THE 2050 VISION IS BUILT AROUND THE FOLLOWING SIX PRIORITIES: Consumer engagement and Energy efficiency – we will System security and flexibility protection – we will work hard continue to take direct and – Scotland should have the to protect consumers from supporting actions to improve capacity, the connections, excessive or avoidable costs, the use and management of the flexibility and resilience and promote the benefits of energy in Scotland’s homes, necessary to maintain secure smarter domestic energy buildings, industrial processes and reliable supplies of applications and systems. and manufacturing. energy to all of our homes and businesses as our energy transition takes place. Innovative local energy Renewable and low carbon Oil and gas industry strengths systems – we will empower solutions – we will continue to – we will support investment, our communities by champion and explore the innovation and diversification supporting the development potential of Scotland’s huge across our oil and gas sector, of innovative and integrated renewable energy resource, working with industry to local energy systems and and its ability to meet our advance key priorities such as networks. local and national heat, maximising the recovery of transport and electricity remaining resources, subsea needs – helping to achieve engineering, decommissioning our ambitious emissions and carbon capture and reduction targets. storage – collaboratively addressing the challenges of today and preparing the sector and its workforce for a positive role in Scotland’s future energy system. Scottish Energy Strategy 08/09 Summary: Scotland’s Economic Opportunity Summary: Monitoring and Engagement This Strategy highlights the connections between This Strategy makes a strong commitment to the energy system and all parts of the economy, improving our approach to public awareness and its importance to sustainable, inclusive raising and engagement.
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