Scotland's Energy Future: Policy

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NEXT STEPS TO DELIVER SCOTLAND'S ENERGY FUTURE

SCDI does not believe that the current UK Government departmental structure is appropriate for a policy area of the strategic importance of energy. The importance of a joined-up approach by the Scottish and UK Governments has been emphasised and a more focused approach to UK energy policy should better support interaction with the devolved administrations. It believes that a single Department of Energy headed by a Secretary of State for Energy should be re-created.

Identifying a timeline for decisions is complicated by the fact that some are ongoing or need to be taken as soon as possible or will only start to have an impact many years in the future because of the long lead time on investment. The full range of SCDI’s recommendations is set out in answer to the Committee’s first two questions, but the following table summarises some of the key decisions:

Decision	By When	By Whom	What Impact

Initiate a debate around Scotland’s energy future	During and following energy inquiry	Scottish Parliament (with UK Parliament)	Informed debate/ consensus around 4 objectives for energy and 3 potential scenarios for electricity

Approve Beauly-Denny scheme	Next year	Scottish Government	Completed in 2012

Pass NPF2 and UK Planning Bill	Next year	Scottish/ UK Governments and Parliaments	Unblock planning system, hit 2020 renewables targets

Introduce Renewable Heat Obligation	Following current UK renewables consultation	UK/ Scottish Governments	Faster progress on decarbonising post 2015

Set policy framework for conventional supply to replace capacity	Without delay	Scottish Parliament/ UK Government	Avoid danger of electricity gap at some point after 2015

Maximise UK oil and gas reserves	Incentives for marginal areas in next Budget, reduce/ simply overall tax in medium term	UK Government	Meet 40% of UK oil and gas reserves in 2020

Approve one or preferably more CCS demonstrator projects	Next year	UK Government	Project working from 2015, aim to decarbonise existing power from 2020

Establish offshore regulatory regime	Following current UK renewables consultation	Scottish Government, UK Government	Increase offshore wind massively post-2015, make progress on marine

Reform regulatory regime and Ofgem’s remit to reflect all costs to consumers	Following current UK renewables consultation	UK Government	Supporting new strategic infrastructure over next 10-15 years

Review transmission charging regime	Following current UK renewables consultation	UK Government, Ofgem	Support investment where resources are most plentiful

More funding for commercial deployment of marine	Following Scottish and UK renewables consultations	Scottish and UK Government	Begin to deploy pre-2015, make real progress between 2015 and 2020

Support Scottish-based production through funding, planning and procurement	Following Scottish renewables consultation	Scottish Government	Some immediate local economic benefits, new manufacturing industries in offshore and marine post-2015

Higher building standards, improve energy efficiency of existing stock	Introduce new standards and incentives as soon as possible	Scottish Government, construction industry	10-year programme for existing stock

Mandate smart metering	Next year	UK Government	Roll-out for no later than 2019

Electrification of UK rail network	End of year	UK Government	Gradual programme from 2014

Commission study of skills needs in the energy industry	Immediately	Scottish Government, Skills Development Scotland	Influence Curriculum for Excellence, Universities Future Thinking Taskforce, Skills Development Scotland etc.

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