Renewable Energy in Scotland

26 September 2012

Rebecca CarrRenewables Routemap Team

Directorate for Energy and Climate Change

Overview

• Policy context• Microgeneration• District Heating• Financial support• Key Actions

– Heat mapping– Expert Commission on District Heating

• Where do we go from here?

Policy Context

Policy ContextClimate Change Act

• 42% carbon emissions cuts by 2020 and at least 80% cuts by 2050, compared to 1990

Renewable Energy

• 100% of Scotland’s electricity demand and 11% of heat demand from renewables by 2020.

Fuel Poverty

• aim to ensure that by November 2016, so far as is reasonably practicable, people are not living in fuel poverty in Scotland

Policy Context

2020 Routemap for Renewable Energy (2011)

Electricity Generation Policy Statement

Policy Context

2020 Routemap – Targets– 100% electricity demand equivalent from

renewables by 2020– 11% heat demand from renewables by 2020– New target of at least 30% overall energy

demand from renewables by 2020– New target of 500 MW community and locally-

owned renewable energy by 2020

• 11% of demand for heat to be met from renewable sources by 2020– 2009: 1.4%– 2011: 2.8%

• 2050 Climate Change Delivery Plan – assumesheat supply largely decarbonised by 2050, with significant progress by 2030

• Sustainable Development Commission Scotland – district heating should be supported as part of any overall action on low carbon heat

• Microgeneration Strategy for Scotland

DECC: The Future of Heating: A strategic framework for low carbon heat in the UK

EU: Energy Efficiency Directive

• Targets• Metering and billing• A comprehensive assessment of the potential for

cogen and district heating• Where benefits exceed costs to take measures

to develop cogen and district heating• An assessment of the energy efficiency

potentials of gas and electricity infrastructures

Financial Support

Financial Support

• Scottish Government financial support for renewable and low carbon heat through:– Community and Renewable Energy

Scheme– District Heating Loan Scheme– Home Renewables Loans– Warm Homes Fund– Renewable Energy Investment Fund

Financial Support• UK Government Support

– Renewable Heat Incentive (RHI)• Expected to be the main financial mechanism for supporting

renewable heat• Phase 1 opened in November 2011 - initial focus on

industrial and commercial sectors

– Renewable Heat Premium Payment (RHPP)• £15 million one off grant scheme for domestic sector• £3 million ring-fenced for social housing

– Green Deal

Financial Support

• RHI Consultations– Proposals for a domestic scheme

• Closes 7 December 2012

– Expanding the non-domestic scheme• Closes 7 December 2012

– Air to water heat pumps & energy from waste• Closes 18 October 2012

Microgeneration Strategy

Microgeneration Strategy

• The overarching aim of the Strategy is to grow the market for microgeneration in Scotland

• Key themes– Planning and regulation– Technology– Skills– Communications– Deployment

Microgeneration Strategy - HeatScottish Government funded domestic renewableheat installations by technology

Microgeneration Strategy

• Tomorrow’s microgeneration technologies– Energy Technology Partnership– Scottish Institute for Solar Energy Research

(SISER)– Micro Fuel Cell Combined Heat and Power

• Burdens Energy, Intelligent Energy CHP, Logan Energy, and the Pure Energy® Centre

Microgeneration Strategy - Actions

Action 1: Microgeneration Task Group

Action 2: Boost to Home Renewables Loans Scheme

Action 6: Identify innovative ways of maximising existing grid capacity

Action 13: Provide comprehensive and coordinated advice and awareness raising on financial mechanisms

District heating

Why district heating?

• Potential to save CO2 compared to conventional heating systems.

• Potential to use a range of heat sources• Cost effective way of reducing CO2 from

Scotland’s heat supply.• Financial benefits to occupiers of homes

and businesses – reducing costs leading to reduced fuel poverty.

• Need to plan now for the future

• District heating loan fund– Low interest loans for both low carbon and

renewable technologies in order to overcome a range of infrastructural issues and costs associated with developing these projects

– Housing associations eligible to apply– Administered and delivered by Energy Saving

Trust: Ken.Brady@est.org.uk

District heating loan scheme -Successful Projects

• Nine projects awarded over £1.9 million• 280 homes• Swimming pools• Schools• Care centre• Multi storey flats

• 3 projects commissioned to date• Additional funding allocated to continue the

scheme• An announcement will be made shortly with

details of the next round of funding

Sustainable Heat Partnership Project

District HeatingLandscape

• Sustainable heat partnership project– with key partners (DECC, Ofgem and SEPA)

to deliver an ambitious, but realistic, low carbon heat network exemplar project that will create a prospectus for step change in sustainable, low carbon heat in urban areas

– Phase 1 identifying fastrack innovation and demonstration projects in 2012/13

Key Actions

Key Actions

• Expert Commission on the Delivery of District Heating– provide a forum for key expert stakeholders to work

alongside government in order to remove barriers to deployment of district heating

– made up made up of academics, industry leaders, local authorities and environmental groups

– first meeting took place February co-chaired by Fergus Ewing MSP, Minister for Energy, Enterprise and Tourism

– recommendations to Government in the autumn 2012

Key Actions• Heat Mapping

– Spatial matching of potential supply with demand– Pilot in Highland Council, Fife and Perth & Kinross

Councils• http://fifedirect.org.uk/heatmap

– Key tool to encourage local planning authorities to maximise opportunities for local heat use

– Publicly available social landlords can access and benefit too

Where do we go from here?

Where do we go from here?• Heat Hierarchy

– energy efficiency > district heating > microgeneration?

• Electric heating– capacity? costs? practicalities?

• Microgeneration – grid capacity?

• Role of district heating– heat sources, including thermal generation? thermal

storage? grid balancing?

Thank you.

rebecca.carr@scotland.gsi.gov.uk