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2020 RENEWABLE ROUTEMAP FOR SCOTLAND UPDATE

30th October 2012

Contents
Ministerial Foreword 1. Deployment Update 2. Update on Cross Cutting Challenges Public Perceptions Grid Market Mechanisms & Regulation Planning & Consents Finance Supply Chain 3. Sectoral Routemap Updates Onshore Wind Offshore Wind Marine Renewables Hydropower Bioenergy and Energy from Waste Community and Locally Owned Renewables Microgeneration Renewable Heat 4. Supporting and Emerging Technologies Energy Storage, Hydrogen and Fuel Cells, Geothermal Annex A: Energy Efficiency Annex B: Transport Annex C: Equalities Statement

MINISTERIAL FOREWORD

Scotland has a renewable energy resource which is unparalleled in Europe, and a Scottish Government determined to reap the economic, environmental and social benefits for Scotland of a decisive shift towards sustainable sources of energy. Our headline target to meet the equivalent of 100% of Scotlands electricity demand from renewable sources by 2020 is among the most ambitious in the world. It is complemented by an equally important target for greater renewable heat generation, as well as an increase in community and local ownership of renewable energy schemes. The Scottish Governments 2020 Routemap for Renewable Energy in Scotland, published last year, set out the actions needed to achieve these targets. This update summarises the progress which weve made over the past year, as well as considering what still needs to be done and the ways in which these tasks are being approached. We are on track to meet our targets. Electricity generation from renewables was at a record high last year, and figures to be published at the end of this year will officially confirm that we have exceeded our interim target for the equivalent of 31% of electricity demand to be generated from renewables by the end of 2011. This is an important milestone on the way to our 100% target; having met it so successfully, we believe that the time is now right for a new interim target. We have considered this issue carefully during the preparation of this update, and can now confirm that our new interim target is that renewable generation should account for the equivalent of 50% of Scottish demand by 2015. The fact that 50% was the target for 2020 which this administration inherited in 2007 is a compelling illustration of how successful and effective our renewables policies have been. The vast majority of this new target will still be met by hydro and by onshore wind. Of course, the development of onshore wind in the right places has provided the rationale and underpinned the approval for and investment in grid upgrades; upgrades which will enable us to develop our offshore and marine potential. The success of onshore wind, coupled with hydro and other renewables, remains a necessary precursor to our developing Scotlands huge offshore renewable potential. Without that success, without the 3 GW plus of onshore renewables, we would not have succeeded as we have and would not be where we are poised to play the lead role in Europe in taking forward new forms of renewable energy as a world leader. This is therefore one tapestry of a policy all of which is necessary. It is not a pick and mix policy.

It is our offshore potential which will take us to the 100% target, and which we expect to do much more - we believe that it will be possible to double, by 2030, the offshore capacity and output which we already know about, and which is already in the early planning stages. We are also making steady progress towards our renewable heat target, with the latest figure of 3.8% in 2011 showing an increase of more than 35% from the previous year. Meanwhile, almost 150 MW of installed capacity could be identified as being locally or community owned by 2011 meaning that we are well on course to meet our target of 500 MW by 2020. The last 12 months have also seen a number of major investments announced in Scotlands renewables sector. We welcome those, and are taking steps to continue the trend our Renewable Energy Investment Fund demonstrates our commitment to support the continued growth of a sector which now employs more than 11,000 people in Scotland. We are publishing an Equalities Statement as part of this update. The renewables industry presents wonderful opportunities for all in Scotland, whether this be through the employment of men and women in the sector, or through communities across Scotland reaping the benefits that can be derived from community energy projects. Renewable energy is also synonymous with equality for future generations, as the steps which we are taking now will protect the environment and create the industries which these future generations will depend upon. Fully unlocking the potential of our vast natural resources will rely upon the talents and skills of people from all walks of life, and from all parts of Scotland. Equality of opportunity is a vital tenet in itself; and I believe that a consistent focus on equal opportunities will play a vital role in helping realise our renewables ambitions for Scotland. We are also publishing short progress reports on Energy Efficiency and Transport as annexes to this update. Our ambitions for energy efficiency and sustainable transport are an integral part of our ongoing work to develop our proposals and policies on climate change and to make the transition to a low carbon economy. The potential for developments and decisive action in these areas both complements and enhances the progress that we are making on renewable energy. For the future, we know we need to closely monitor progress. This will include updating our Electricity Generation Policy Statement (EGPS), about which we are liaising with our engineering institutions and stakeholders following our recent consultation. We also recognise the need to develop a longer term strategic vision on heat, which is why we are developing a heat vision that will look at heat in the wider context of available energy resources, and demand. This will include a draft heat hierarchy of use and a Heat Generation Policy Statement (HGPS) which will look in detail at possible generation scenarios. The HGPS will sit alongside the EGPS providing a comprehensive energy policy view. Our vision remains clear and our goals within reach a secure, sustainable energy future for Scotland. We will continue to work together, and by doing so, we will succeed.

Fergus Ewing Minister for Energy, Enterprise and Tourism

1. Deployment Update
Renewable Electricity Generation
Electricity generation from renewables in Scotland

16,000
Solar PV

Provisional2011Estimate(35%) 2011InterimTarget(31%)

35%

14,000

Other biofuels Sewage Gas

12,000

Landfill Gas Wind (includes a small amount of wave)

25%

10,000
Hydro Renewables as a % of gross consumption (2011 Provisional)

20%

8,000

15% 6,000

10% 4,000

2,000

5%

0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

0%

1.1 Finalised renewable electricity generation figures for Scotland during 2011 show that generation during that period was 13,728 GWh up 27.9% on 2009, the previous record year for renewables. Our target for renewable electricity generation is for renewables to generate the equivalent of 100% of gross annual consumption by 2020, with an interim target of 31% by 2011. Final annual generation statistics for 2011 are now available, although consumption figures will not be published until December. However, while we await official confirmation, taking gross consumption during 2010 as a proxy suggests that around 35 per cent of Scotlands electricity needs is likely to have come from renewables in 2011 (see chart above). 1.2 Exceeding our interim target in this fashion shows that Scotland is on a very positive trajectory towards the 2020 target, as the following parts of this section make clear (paras 1.5 to 1.10). We believe that the time is now right to set another ambitious but achievable interim target to help map the way towards 2020. 1.3 We have taken available data on renewable electricity capacity which is currently operational, and assumed the addition by 2015 of capacity which is either under construction at present or which has consent to build, and which developers timetables forecast will be operational by 2015. Applying average load factors to this capacity allows us to estimate that renewable electricity generation in Scotland could amount to the equivalent of 50% of Scottish demand for electricity by the end of 2015. 1.4 This figure is both ambitious and achievable, based on available data and evidence; as such, the Scottish Government is formally adopting this new interim target of 50% by 2015 as the next vital milestone in our journey towards the 2020 target of 100%.

Percentage of gross consumption

30%

Electricity generated, GWh

Renewable Electricity Deployment Trajectories Forecasts to 2017 Figure 1: Forecast of Renewable Electricity Installed Capacity to 2017.

10 9 8 Installed capacity (GW) 7 6 5 4 3 2 1 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Installed Under construction Consented (awaiting construction)

1.5 Figure 1 above shows a forecast of renewable electricity capacity deployment in Scotland to 2017. The forecast assumes a starting point of 4.8 GW of installed renewable capacity, as published by the Department of Energy and Climate Change (DECC) in June 2012 1. 1.6 This forecast takes data on renewable projects from the planning system, and demonstrates the levels of renewable capacity coming forward if all under construction and consented projects are delivered. The analysis assumes that all under construction projects become operational although it is acknowledged that some completion dates may differ from those presented here. It is also assumed that all consented projects are constructed and operational on the dates expected and ignores the potential for delays or that some consented projects may not proceed any further in the timescale considered. In both cases, this may lead to some degree of optimism in the estimates. 1.7 However, in only including projects already consented by June 2012, the analysis ignores the potential for any new projects to be consented and completed between now and 2017 thereby introducing an offsetting element of underestimate. The analysis also ignores any projects under 1MW although, even in aggregate, it is not expected that they would markedly alter the forecast of deployment. These short-medium term forecasts suggest that there will be over 9 GW of operational capacity by 2017. This is more than double the level deployed in June 2012.

http://www.decc.gov.uk/en/content/cms/statistics/energy_stats/source/renewables/renewables.aspx

Projections to 2020 1.8 Projections allow us to estimate future deployment rates on the basis of past trends, using historical progress of existing renewable projects from conception to operation. Figure 2 below presents a series of scenarios representing potential patterns of renewable electricity deployment in Scotland. 1.9 These scenarios consider longer term renewable deployment using historical trends adjusted for considerations such as the Scottish Governments 9 month consenting target, or the limited deployment of offshore technologies to date. Both of these examples would explain why future trends will not mimic the past. Figure 2: Projections of Renewable Electricity Installed Capacity Based on Historical Data

20 18 Installed capacity (GW) 16 14 12 10 8 6 4 Scenario A Scenario B Scenario C Scenario D

11

12

13

14

15

16

17

20

20

20

20

20

20

20

20

20

1.10

The scenarios modelled in the chart above are as follows:

Scenario A deployment projection based upon an extrapolation of the annual deployment levels experienced between 2009 and 2011, adjusted for the improvements in the planning/consent system that were introduced in recent years (but which have not yet impacted upon actual deployment rates). Scenario B deployment projection based on the forecast set out in figure 1, and assumes that the average rate of annual capacity deployed between 2012 and 2017 is projected to continue to 2020. In addition, no further offshore wind deployment is assumed until 2018, subject to planning outcomes and based on current estimates from developers. Scenario C the 100% target line is a straight line extrapolation between current installed capacity and the estimated levels of capacity required to achieve 100% of gross consumption from renewables in 2020. This hypothetical line is incorporated to identify and acknowledge the scale of the challenge. In reality, it is recognised that deployment will not follow a straight line and would be expected to accelerate towards the latter part of the decade, particularly given the potential magnitude of offshore wind deployment. Scenario D deployment projection, based on Scenario B above, incorporating wider industry estimates of offshore wind deployment which results in an additional 5.7 GW of offshore wind being deployed by 2020.

20

20

18

19

Renewable Heat Estimated Output And Trajectory 1.11 Progress towards the renewable heat target is currently measured in terms of estimated non-electrical heat demand in 2020, although work is in hand to provide a more robust annual measure of progress. 1.12 Between 2010 and 2011, renewable heat capacity in Scotland increased by 0.073 GW, and output increased by 567 GWh, from 1,696 GWh to 2,263 GWh. This resulted in an estimated 3.8% of 2020 forecast non-electrical heat demand in 2011 up from 2.8% in 2010. 1.13 An estimated 0.153 GW of installed capacity from (mostly large) projects is currently under construction in Scotland, which could provide a further 1,104 GWh of renewable heat. Adding these figures to current operational installations will provide a total of 0.637 GW of renewable heat capacity and 3,367 GWh of renewable heat output. This would represent the equivalent of 5.6% of 2020 non-electrical heat demand. 1.14 In addition, an estimated 0.448 GW of capacity is either consented but not built, or submitted to local planning authorities for planning permission. These installations could provide around 2,850 GWh of renewable heat. Assuming that 50% of these projects come to fruition before 2020 (providing a further 0.224 GW and 1,425 GWh of heat), and added to those installations currently under construction and operating, this would give a total capacity of 0.860 GW and 4,792 GWh of renewable heat, equivalent to 8.0% of 2020s estimated non-electrical heat demand. 1.15 We are currently working with DECC, Scottish Renewables and AEA Technologies to improve our data and understanding of pipeline heat projects. We will provide a progress report of this as well as details of any annual heat target measurement in the 2013 Energy in Scotland Statistical Compendium.
Figure 3: Indicative interim milestones towards the 2020 target for renewable heat, compared with actual heat output in 2008/9, 2010 and 2011.

Data sources and approach 1.16 We have used several data sources to inform our analysis of renewable electricity and heat deployment trajectories. Published DECC figures from Energy Trends were used to demonstrate pre2012 installed renewable electricity capacity, while our deployment forecasts to 2017 are based on consenting and construction information from the DECC RESTATS database as well as evidence from developers. The Energy Saving Trust Renewable Heat Database measures progress towards our renewable heat target. The projections of future renewable electricity deployment use data from DECC RESTATS, Scottish Renewables, developers and The Crown Estate. 1.17 Applying past trends to project future scenarios is widely used for analysis, although it does of course rely on the past being a good predictor of the future. The limited historical deployment of some technologies in Scotland, notably offshore wind and marine technologies, means that this approach risks underestimating the likely deployment of these technologies. 1.18 This means that a note of caution should be applied to our predictions and forecasts for renewable electricity and heat; there is a significant degree of uncertainty involved, ranging from the limitations arising from historical data mentioned above to the effects that could be caused by changes to the associated market and regulatory mechanisms. 1.19 Deploying renewable electricity capacity, for example, depends on several complex and interdependent factors. This means that our scenarios represent feasible but ultimately uncertain deployment profiles, driven by the assumptions which we have adopted. Figure 2 shows that 2020 deployment could be in the range of 11-18 GW. This compares with the 14-16 GW which we estimate will be required to deliver the 100% target.

2. Update on Cross-Cutting Challenges

Public Perceptions 2.1 The Scottish Government supports, and wishes to see, the development of a diverse range of renewable technologies and projects across Scotland. We accept that the increasing number of schemes across the country, particularly those highly visible developments such as onshore wind, have helped raise the profile of the renewables sector within the media and amongst the wider public. This has led to increasing debate over the role of renewables as part of our wider energy mix, the cost and effectiveness of such technologies and, in particular, their effects on Scotlands landscape and the ability of the local and national planning system and policies to deal with them. 2.2 The Scottish Government respects the views of those who have concerns about renewable energy and renewables technologies, and welcomes the often vigorous debate to be had around these issues. From a planning point of view, Scottish Ministers or, as appropriate, local authorities, are under a statutory obligation to consider all material considerations, including objections to developments. 2.3 We believe that the wider debate over renewables policy, and the progress of applications through the planning system, can sometimes be hampered by the widespread availability and acceptance of flawed information and myths about renewables. The Scottish Government believes that there is much which could be done to improve the debate, and the availability of the information which informs it. 2.4 Contrary to some claims by detractors, we estimate that less than 2% of Scotlands land mass will be required as a contribution by onshore wind towards meeting the 2020 target. Onshore wind in the right areas will also play a vital role in strengthening the grid, supply chain and other infrastructural components which emerging technologies, such as offshore wind, wave and tidal energy, will depend upon. 2.5 The Scottish Government intends to continue working with all stakeholders to ensure that the facts are represented accurately to the people of Scotland. For example, we are currently working on a means through which to make available through the Scottish Government website up to date, accurate and easily accessible information and data regarding the number and status of renewable energy planning projects across Scotland. We are also considering how to update the existing evidence base around the effects of wind turbines on tourists attitudes and behaviour. 2.6 Meanwhile, surveys continue to suggest that a very large majority of people support the deployment of renewable energy technologies. The most recent findings from DECCs tracking survey of public attitudes, which began in March this year, show that 77% of those surveyed support 2 the use of renewables to produce electricity, heat and transport fuel, with only 4% opposed . 2.7 This largely positive public attitude towards renewables may be consolidated further as communities realise the opportunity to invest in and benefit from local schemes. There is already at least 147MW of renewables capacity in community and local ownership, spread across 3,400 sites. With continued support from our Community and Renewable Energy Scheme (CARES) recently recognised by the OECD as an example of good practice in bottom-up approaches to renewable energy 3, and linking to new capital support from our Renewable Energy Investment Fund, communities can take full advantage of the energy resources around them to local benefit. This may include partnerships with commercial developers as well as directly-owned community schemes. Our new Community Benefits Register (currently held on the Scottish Governments behalf on the Community Energy Scotland website) will not only improve transparency about community benefits from commercial schemes and help communities negotiate with developers, but will build into a repository of case studies to demonstrate the added value that renewable energy, particularly onshore wind, is bringing to Scottish communities. 2.8 Lastly, we know that renewable energy, building and supporting these new technologies and their infrastructure, comes at a cost; however, these costs will be kept to affordable levels,
2 3

http://www.decc.gov.uk/en/content/cms/statistics/public_att/public_att.aspx OECD (2012), Linking Renewable Energy to Rural Development, OECD Green Growth Studies, OECD Publishing. http://dx.doi.org/10.1787/9789264180444-en

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and, we believe, are a price worth paying. This is certainly the case in the macro sense whereby forecasts suggest that investment now in renewables, energy efficiency and other low carbon policies will cost consumers less in the long term compared to a continued reliance on fossil fuels and also in the micro sense, in that the installation of renewables can make a real difference to those in fuel poverty. For example: The latest figures available on the Renewables Obligation (RO) show that it would have cost domestic consumers in Scotland a theoretical maximum of just over 15. Over the next few years (until 2017), estimates suggest that this will rise to 50. The renewables sector is beginning to respond to the call to link local energy generation directly to local energy costs, with several companies developing schemes to offer discounts to electricity consumers as a form of community benefit from their local windfarm. We are encouraging developers to operate these schemes in Scotland, and also promoting the application of conventional community benefit funds to energy efficiency and the mitigation of fuel poverty. Indeed, our new 50 million Warm Homes Fund is being specifically designed to mitigate fuel poverty through local renewables schemes by offering support for revenue-generating projects and district heating schemes to registered social landlords and to local authorities. This will complement the support already available (to communities and rural business under CARES and the District Heating Loans Scheme, and to individual householders under Homes Renewables Loans), and will capitalise on the key role which housing associations and local authorities can play in directing local energy to help bring down fuel costs.

Overcoming Deployment Challenges 2.9 Making renewables the cornerstone of our future energy supply means that we will need the right infrastructure, processes and support to be in place and fit for purpose. The following areas are therefore critically important: Grid Market Mechanisms & Regulation Planning Finance Supply Chain Grid Access, Reinforcement and Charging Overview 2.10 Early in 2012 Ofgem announced the biggest upgrade of Scotlands electricity infrastructure in 60 years, with up to 7 billion of investment from Scottish Power and SSE, quadrupling Scotlands export capacity to the rest of the UK by 2018. 2.11 Work on the Scottish transmission networks has also progressed well over the last year. SHETL has begun construction on the Beauly-Denny upgrade, the West Coast subsea line is now out to tender prior to the construction phase, and various upgrades are well underway or completed, including the strengthening of the circuits over the border to England. 2.12 The Scottish Distribution Network Operators (DNOs SHEPD, part of SSE, and SPEN, part of Scottish Power) are now working on their business plans for the next distribution price control period (2015-23). These plans will set out significant investments, which will allow a great deal of generation to connect to the distribution network. 2.13 We are also working with others to understand and address constraints on the distribution network. We have set up a Community Energy Grid Networks Working Group, in partnership with the Scottish DNOs and Community Energy Scotland. This will identify and fund pilot projects which would get the maximum use and value from the existing network around communities interested in generating their own renewable energy, potentially saving money on expensive upgrades.

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Irish-Scottish Links on Energy Study (ISLES) 4 2.14 The ISLES project is a collaboration between the Scottish Government, the Northern Ireland Executive and the Government of Ireland to drive forward the delivery of grid infrastructure for 2020 and beyond and connecting up markets. The project, funded by the European Unions INTERREG IVA Programme, assessed the feasibility of creating an offshore interconnected transmission network in the northern coastal waters linking Scotland, Northern Ireland and Ireland and in the Irish Sea. 2.15 The overall message from the project is that development of a subsea electricity grid to garner and transport electricity created from renewable energy sources is both technically and economically feasible. At the same time, barriers to development of multi-state projects relating to the operation of energy markets and project permitting processes were highlighted. Subject to funding, further research is planned with the purpose of identifying workable solutions for the barriers identified in ISLES. Transmission Charging 2.16 We have welcomed the review of the charging methodology by Ofgem in Project TransmiT, which concluded the status quo on charging is no longer an option, and note their view that Government is best placed to determine a preference or subsidy for one form of generation or one area of the country over another. 2.17 Working together with the Shetland, Orkney, Western Isles Councils and HIE, we are fully playing our part in the ongoing industry panel review of the findings of Project TransmiT. It is essential that this review delivers on the wider changes to the charging regime set out in TransmiT. It must also help to deliver a charging regime that levels the playing field creating conditions that are better able to deliver Scotlands vast renewable energy potential and that reflect the realities of our future generation mix. 2.18 We have called consistently for further action on islands charging, in addition to the ongoing industry panel review. On 11 October this year the Scottish Government and DECC announced the formation of an Islands Charging Group, which will undertake to identifying and undertaking a detailed assessment of options for addressing or mitigating the charges faced by renewable energy generators in the Scottish Islands. Smart Grid 2.19 In May 2012 Scottish Enterprise launched an industry-led Scottish Smart Grid Sector Strategy to capitalise on Scotlands smart grid expertise and create thousands of new jobs in Scotland. Smart grids are digitally-enabled grids that can accommodate the changing patterns of demand and generation of electricity. They facilitate the integration of renewables, allowing the network to be balanced more easily and efficiently, and bring considerable benefits to the consumer such as more reliable, sustainable and cost-efficient electricity. Market Mechanisms and Regulation Renewables Obligation 2.20 The Renewables Obligation (RO) remains the key incentive for the build of new, large scale renewable electricity generating capacity across Scotland. While its future beyond 2017 depends very much on the outcome of the current electricity market reform proposals (see below), changes emerging from a recent review of technology bands and related consultations are due to take effect from April 2013 5. 2.21 The key changes and proposals affecting the RO in Scotland are as follows: Reduction in onshore wind support by 10%; Retention of support for hydro generation at the current level; Introduction of a 10 MW capacity ceiling for dedicated, wood-fuelled biomass generating stations.

4 5

http://www.scotland.gov.uk/Topics/Business-Industry/Energy/Action/leading/iles http://scotland.gov.uk/Topics/Business-Industry/Energy/Obligation-12-13/ROReview11-12Response

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Electricity Market Reform

2.22 Electricity Market Reform (EMR) represents the largest reform of the electricity market since privatisation. These reforms are fundamental to the energy sector, both for Scotland and for the rest of the UK. The Scottish Government is determined to ensure that EMR respects the devolved settlement, and recognises the benefits that Scotlands use of its devolved powers have delivered to the UK as a whole. EMR should work for those investing in Scotland, delivering our full energy potential and maintaining the significant and tangible industry, investor and developer confidence that we have worked hard to establish. 2.23 The EMR proposals represent a significant change, with the RO being replaced by a new support mechanism a Contract for Difference (CfD) providing long term price certainty for low carbon generation. The Scottish Government has used our devolved powers over the RO to create a strong and effective framework of support, targeted to reflect Scottish priorities such as our enormous wave and tidal energy potential. Our clear position is that changes to the support mechanism for renewables must be at least as effective as the current framework and the reforms must build on our strengths and successes. 2.24 We want to be productive partners in the EMR process to ensure that investor confidence in Scotlands electricity sector is maintained and renewables and Carbon Capture and Storage in Scotland are developed. We have secured, in primary legislation, a statutory consultation role for Scottish Ministers in the design and delivery of the CfD and underlying institutional framework. We are working towards formulating a secondary legislative framework that clearly establishes a role for Scottish Ministers in the CfD delivery and monitoring arrangements. We have also made it clear to the UK Government that Scottish Ministers should have a statutory role in the accountability and governance arrangements of the System Operator (National Grid). 2.25 We will continue to work constructively with the UK Government in order to ensure that the proposed reforms support our renewable energy and climate change targets and priorities. Planning And Consents 2.26 We have taken a number of steps to improve the efficiency and effectiveness of our planning and consent procedures: Renewed emphasis on best practice through new consents guidance and procedures, and promotion of the online good practice resource developed by the GP Wind Project. Drive for closer working with planning authorities and exchange of good practice through engagement, including open seminar on 27 August 2012. Development of new Short Life Working Group for Onshore Consents for Autumn 2012 to examine ways of improving and streamlining process for Section 36 consents. Eskdalemuir Working Group set up to re-examine the 2005 Styles model, which is used to calculate the vibration from wind turbines at Eskdalemuir, and to consider policy around the allocation of any noise budget which is freed up by the new work. Convened the first Energy Upgrade Forum on 4 May to discuss strategic issues around the upgrade of transmission infrastructure and issues relating to grid connection as a barrier to deployment of renewables. Continued engagement around aviation issues, with developers, air navigation service providers and other stakeholders, including through re-convening the South Scotland Aviation Solution Group in Autumn 2012, to promote cooperative working towards mitigation solutions, and with a view towards developing wider regional solutions.

2.27 The Scottish Government has also allocated extra funding to help planning authorities deal 6 with renewable planning applications . The 300,000 funding will be available to help those planning authorities who have experienced a significant increase in the number of planning applications for wind turbines, putting pressure on their ability to meet statutory deadlines. Of the money, 280,000 will go directly to Planning Authorities, and 20,000 will be used by the Scottish Government to monitor how the money has been used, find out the most effective approaches, and use this to provide advice to Planning Authorities facing unusually high volumes of planning applications in future.
6

http://www.scotland.gov.uk/News/Releases/2012/09/windfunding30912

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Financing The Renewables Sector Introduction 2.28 Achieving our targets for Scotlands renewables sector will continue to need significant investment in technology and infrastructure. The Scottish Government and its agencies are working to create a positive and cohesive policy and financing framework that supports the industry and makes Scotlands renewables sector an attractive proposition for investors. Innovation and R&D 2.29 We are developing an integrated package of support to develop a pathway from the laboratory and small scale tests to full-scale onshore and offshore capability, as embodied by the following schemes and initiatives: Prototype Offshore Wind Energy Renewables Scotland Fund (POWERS) Scottish Enterprise has established a 40 million fund which will provide financial support for capital and operational costs associated with the production of full scale prototypes of next generation offshore wind turbines. Marine energy innovation support: Four WATERS1 projects are progressing well, with companies being supported through SE and HIE Relationship Management. The WATERS2 competition supporting low cost of energy device development made five awards totalling 7.9m in June 2012. Offshore Renewable Energy Catapult Centre (ORE CAT): This will help ramp up critical offshore renewable technology development, leading directly to increased investment and accelerated commercial success, while enabling the UKs R&D, test and demonstration assets to effectively work together. ORE CAT HQ is to be located in Glasgow with an Operations Centre in Blyth, Northumberland.

Investment in Infrastructure 2.30 Suitable port and harbour infrastructure is critical to securing investment in the offshore industry, both in terms of manufacturing and construction, and beyond for operations and maintenance. The Deputy First Minister was able to give the green light to an ambitious 9.2 million pier plan in Stromness by announcing in August 2012 a 2.5 million contribution to the Coplands Dock project. This demonstrates our commitment to getting the right infrastructure in place to support the development of the marine renewables industry in the Highlands and Islands. In addition, masterplanning at the Port of Leith, which will support Renewables alongside other key sector opportunities, and spatial planning and advanced site works at Dundee are also underway to ensure our facilities are appropriate for anticipated demand. 2.31 Scottish Enterprise has established the 70 million National Renewables Infrastructure Fund (NRIF) to enable the development of infrastructure to support the offshore renewables supply chain. This is being focused particularly on securing vital elements of the offshore wind supply chain, such as turbine and jacket manufacture. In the Highlands and Islands, public and private sector investment exceeding 70 million is already underway or committed to a range of port developments including Nigg, Scrabster, Hatston and Lyness. Test Sites 2.32 The availability of test facilities, particularly in real sea conditions, is essential and a key part of Scotlands strategy for securing investment. Building on the success of the Beatrice deep water testing facility, we are working with partners to develop additional test facilities for offshore wind turbines. Current sites being developed include the Fife Energy Park at Methil, the European Offshore Wind Deployment Centre, and the Hunterston test facility. On 10 October 2012, the First Minister unveiled funding of 4.3 million from the National Renewables Infrastructure Fund for the Hunterston test centre. Once it is fully operational the facility which is also benefiting from 15 million investment from SSE will be capable of hosting three full scale wind turbines designed for offshore deployment. 2.33 The world leading European Marine Energy Centre (EMEC) in Orkney now has all of its wave and tidal berths contracted, and new non-grid connected nursery sites developed and in use. EMEC, together with its public sector funders and partners, is currently assessing and planning future

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expansions, both in terms of physical facilities and growth of business activities, such as research and development and off-site consultancy. 2.34 The Scottish Energy Laboratory has been created to facilitate access to all of Scotlands key test and demonstration facilities, while the University of Strathclydes Centre for Advanced Condition Monitoring will support the development of full scale onshore and offshore testing, while the Power Networks Demonstration Centre plays a key role in increasing the UK electricity grid's efficiency and reliability, as well as testing the next generation of smart electrical technologies Driving Down Costs 2.35 Cost reduction across the renewables industry is vital for developers, consumers and investors. Scottish Enterprise has identified a number of areas for cost savings for the offshore wind sector. The research which has been conducted includes detailed analysis of where alternative sectors such as oil and gas can transfer skills to reduce costs, or specific areas of R&D which can deliver cost savings. 2.36 Scottish Enterprise research also suggests that the skills and experience of the oil and gas sector could help reduce the costs of offshore wind by 20%. A Guide to Offshore Wind for the Oil and Gas Sector was launched in 2011 and further work is underway to provide detailed information about opportunities for the sector to diversify into offshore wind. An Action Plan for Oil and Gas into Renewables was agreed at last years Oil and Gas into Renewables Summit and key actions from this will make up the renewables section within the Oil and Gas Action Plan which is being developed following the launch of the strategy. Funding Mechanisms 2.37 In October 2012, the First Minister announced the opening of the Scottish Governments 103m Renewable Energy Investment Fund (REIF) 7. The fund will prioritise investments in marine energy, community renewable projects and renewable district heating. It is designed to complement existing public and private sector finance schemes available in Scotland, providing bespoke investment deals typically involving loans, loan guarantees and equity finance alongside coinvestment partners. REIF will be delivered by the Scottish Investment Bank on behalf of the Scottish Government and its enterprise agencies, with the first deals expected to be completed by the end of the financial year 2012/13. 2.38 REIF has been specifically designed to complement the funding available through the Green Investment Bank (GIB). Capitalised with 3 billion, the GIB prioritises different areas of renewables to REIF and focuses on technologies closer to commercial realisation. The announcement in March 2012 that Edinburgh has been chosen as the headquarters of the GIB is testament to the strength of our renewables sector; Scotland should be well placed to benefit from the investment available through the GIB. 2.39 In May 2012, the Scottish Government opened its 18m Marine Renewables Commercialisation Fund (MRCF). The funds aim is to help commercialise the marine energy industry in Scotland by providing capital support for projects that will accelerate the deployment of commercial-scale wave and tidal stream energy arrays in Scottish waters. The MRCF will initially provide capital support to commercial-scale arrays of multiple devices. It may also support innovative enabling technologies or infrastructure that will de-risk future arrays. We hope to make conditional awards in early 2013. Supply Chain Introduction 2.40 Renewable energy presents Scottish businesses with significant opportunities. Scotlands Enterprise Agencies, Skills Development Scotland and local authorities, along with other private and public sector stakeholders, are making critical interventions to ensure that these opportunities are fully realised. Efforts are being focused on the following three areas raising awareness, investment readiness and skills / labour availability issues.

http://www.scotland.gov.uk/News/Releases/2012/10/renewable-investment10102012

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Raising Awareness 2.41 Scotlands Enterprise Agencies, in partnership with The Crown Estate, have delivered a series of supply chain events providing businesses across Scotland with opportunities to gain a greater understanding of, and potential diversify into, offshore wind. Similar events to raise awareness of wave and tidal energy opportunities, particularly around the Pentland Firth and Orkney Waters commercial leasing area, have alerted businesses to the longer term opportunities in this sector which were illustrated by the launch of the Marine Energy Park in July 2012 8. In addition, international programmes have been conducted through SDI to introduce Scottish companies to the supply chain opportunities in other key international markets. 2.42 Scottish Enterprise and Highlands and Islands Enterprise have also supported Meet The Buyer events 9, aimed at informing the industry of common issues, fostering best practice, and providing a conduit for innovative technologies to be introduced to developers and original equipment manufacturers (OEMs). These have been developed and delivered with various partner organisations to promote the opportunities to supply chain companies. 2.43 The Enterprise Agencies have also developed the web-based Offshore Wind Supplier Directory. The directory provides a picture of Scotland's supply chain capabilities to both a domestic and international audience, and will enable companies to showcase their capability in the offshore renewables supply chain. Investment Readiness 2.44 This workstream is geared towards ensuring that the offshore renewable supply chain is ready and able to invest in new market opportunities, and thus to ensure that Scotland secures a significant share of the investment required to build large scale developments. It involves working across a number of areas including innovation, business development and infrastructure. The focus is on crucial components and services in the supply chain; to date, this has resulted in the provision of funding and support to a range of companies such as Gamesa, the Global Energy Group, Mitsubishi Heavy Industries, NGentec, BiFab, Steel Engineering, and Wind Towers Ltd providing confidence for investment and expansion in crucial parts of the supply chain. 2.45 Tailored support is also being made available to developers and turbine manufacturers on an individual basis, addressing common supply chain shortages. Projects include supporting the establishment of a casting facility for turbine manufacturers and facilitating bespoke supplier events for developers and turbine manufacturers. 2.46 Scottish Enterprise has also developed new support programmes to enable businesses to expand into the sector, specifically the Offshore Wind Expert Support programme. This has been established to help companies who have not traditionally been involved in the offshore renewables sector to consider and build diversification strategies to enable them to win business. A fully funded product of one-to-one support delivered by specialists, this is aimed at addressing a companys specific requirements in areas such as: o advice on market / supply chain positioning, o market entry requirements, o investigating the companys current capability (e.g. skills, processes) in relation to offshore wind opportunities, o suitability of a specific product to the sector. 2.47 More than 70 companies have completed this programme, 15 of which were from the oil and gas sector. Companies who have completed this program include companies from the automotive sector such as Thomson Pettie, and others such as Highland Galvanisers. This service compliments the services in innovation and internationalisation offered by economic development agencies. 2.48 In marine energy, work is underway with The Crown Estate to determine developers supply chain requirements for the first stages (up to 30 MW) of their commercial scale projects. This will help identify opportunities for Scottish businesses, building upon the strong cluster of activity already evident in Orkney, where device deployment, retrieval, testing and engineering work is already
8 9

http://www.scotland.gov.uk/News/Releases/2012/07/marinenergy30072012 http://www.scottish-enterprise.com/news/2012/06/want-to-get-involved-in-offshore-wind-but-dontknow-how.aspx

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underway. As well as direct engagement with technology and project developers, the SE-TSB-NERC Marine Energy Supporting Array Technologies competition, launched in March 2012, involved events aimed specifically at building cross-sectoral consortia. The awards have helped to attract new industry expertise and have encouraged industry collaboration in developing the marine energy supply chain. Skills / Labour Availability Issues 2.49 In September 2012 Finance Secretary John Swinney announced that The Scottish Government will create a new Scottish Energy Skills Academy. Supported by the Governments skills and enterprise agencies, the Academy will maximise the impact of available resources and stimulate employer investment in skills. This work will include cross-working between the offshore wind and the oil and gas sector. 2.50 Particular aspects of expertise which can readily be targeted include the world class health and safety regimes, process and practises developed in the North Seas oil and gas industry which can be applied to all offshore working environments. There are also opportunities from the wider oil and gas supply chain which can be applied to the offshore wind industry, such as subsea hardware technology, pipeline technology and systems coating products. 2.51 Relevant recent developments on skills issues include:

The establishment by the Scottish Government of the Energy Skills Action Group, now Chaired by Frank Mitchell of SP Energy Networks, to work collaboratively across the Industry Leadership Groups, identifying and addressing key skills issues across the energy sector. The Scottish Government has ring-fenced 500 of our 25,000 modern apprenticeship starts for energy every year during the lifetime of this Parliament. The commitment of a further 2m in 2012/13 to support at least an additional 1,000 flexible training places in energy and low carbon through a continuation of the Low Carbon Skills Fund and the new Energy Skills Challenge Fund. The development of industry led Skills Academies including the Nigg Skills Academy and The Renewable Energy Skills Training Academy (TRESTA) both of which were launched by the First Minister in 2012. The Nigg Skills Academy is aiming to have 290 Modern Apprenticeships started by the end of year one, and to provide training for some 3,000 people by 2015 for a range of jobs including engineers, operators, riggers, technicians, general and project management.

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3. Sectoral Routemap Updates

3.1 ONSHORE WIND
RECENT SUCCESSES The launch of the output from the Good Practice Wind Project (GP Wind), sponsored by Intelligent Energy Europe and led by the Scottish Government. This output represents a comprehensive resource for addressing barriers to the deployment of onshore and offshore wind energy generation, as it has records and shares good practice in reconciling renewable energy objectives with wider environmental objectives and actively involving communities in planning and implementation. The Scottish Government is leading the way in the UK in supporting the investment in onshore wind, and the renewable energy industry as a whole. We were ahead of the UK government in announcing in July that it would provide support for onshore wind generation in Scotland at a level of 0.9 Renewable Obligation Certificates (ROCs).

CHALLENGES Continuing to engage with Communities to ensure that public support for onshore wind projects is maintained. Mounting pressure in some areas experiencing an influx of applications for onshore wind developments, with some Local Authorities calling for a moratorium on further applications.

KEY ACTIONS Allocating funding of 300,000 to Local Authorities to support them in dealing with onshore wind applications. Working with key stakeholders, including the renewables industry, to ensure that accurate messages about onshore wind are being portrayed. Short Life Working Group for Onshore Wind to be convened to look at streamlining consents and ensuring appropriate community involvement.

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3.2 OFFSHORE WIND

RECENT SUCCESSES Further to its announcement of the establishment of its Offshore Wind Technology Centre in Glasgow which will create 180 R&D jobs, Gamesa announced its new UK new wind turbine manufacturing plant is to be sited at the Port of Leith. Around 800 new jobs will be created at the Edinburgh plant and hundreds more in supply chain, with investment up to 150 million. Samsung Heavy Industries to base its first European offshore wind project at Fife Energy Park. More than 500 jobs could be created in Fife through this 100m project to develop a new generation 7MW wind turbine. Global Energy Group buys Nigg Yard to develop a service yard for the energy industry (oil and gas and renewables). Expected to employ 2,000 people (of those 800 in renewables) on site by 2015. Nigg Skills Academy opened in March with 3000 training places to be created by 2015. Mitsubishi Power Systems Europe Ltd (MPSE) plans to invest up to 100 million in Centre for Advanced Technology to carry out R&D into offshore wind turbine technology. 30 Engineering jobs will be created.

CHALLENGES Published in September 2010 the Scotlands Offshore Wind Route Map sets out the opportunities, challenges and priority recommendations for action for the sector to realise Scotlands full potential for offshore wind. This is the key document and policy driver for the successful delivery of the industry in Scotland. To ensure that the recommendations are still relevant, a refresh of this document will be published early in the New Year.

KEY ACTIONS The outstanding recommendations of the Route Map will be amalgamated with the key actions identified in the Offshore Wind Cost Reduction Task Force Report, to cut the cost of generating electricity in the sector by over 30% to 100 per megawatt hour by 2020. The Offshore Wind Industry Group (OWIG) (co-chaired by the Scottish Government and an Industry Representative) represents all the development consortia involved in Round 3 and STW rounds, and in conjunction with DECCs Offshore Wind Programme Board will identify solutions to tackling the challenges facing the offshore wind industry.

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3.3 MARINE RENEWABLES

RECENT SUCCESSES In June 2012, we launched the Marine Renewables Commercialisation Fund (MRCF). The Scottish Government has invested 18m to help accelerate the deployment of commercial-scale wave and tidal arrays in Scottish Waters. A number of projects have now undergoing due diligence checks and conditional awards are likely to be made in early 2013. Our Marine Energy Action Plan was launched on 22 June 2012 and the Scottish Government, working with partners and other stakeholders in the marine energy sector, are working to implement the recommendations. On 10 October 2012, our 103m Renewable Energy Investment Fund (REIF) was opened for business by the First Minister. The fund will ensure that financial support is in place to help marine renewable projects become commercial realities. On 28 August 2012, 6.5m was awarded to seven projects through the SE / TSB Marine Energy: Supporting Array Technologies programme which brings together public sector funder and industry companies to address common technology challenges. On 29 August 2012, five projects were awarded 7.9m from the WATERS2 fund to further develop testing of new wave and tidal prototypes in Scottish waters. The European Marine Energy Centres 14 full-scale test sites - six wave and eight tidal, are all fully leased, with ten devices now in the water. The Deputy First Minister launched the Grand Challenge phase of Scotland's 10 million Saltire Prize competition in Orkney in August 2012. There are now four competitors in the race for the prize: Aquamarine Power; MeyGen; Pelamis Wave Power; and ScottishPower Renewables. The Saltire Prize is helping draw international attention to the planet-saving potential of wave and tidal power and to Scotland's leading position in marine energy development. The Saltire Prize website was revamped to coincide with the launch. The new website now contains video content, links to social media and a series of engaging case studies to showcase innovation in the sector. We have also revitalised the Saltire Prize brand to make it fresher and more distinctive. The new logo and branding materials will be used by stakeholders and competitors at events and conferences to help raise the profile of Scotland's marine energy sector.

CHALLENGES Need to ensure that the various funding streams available for marine energy, including the UK Governments Marine Energy Array Demonstrator (MEAD) scheme, our Marine Renewables Commercialisation Fund (MRCF) and our Renewable Energy Investment Fund (REIF), operate in a complementary manner and that the funding landscape does not become overly complex. A major risk associated with an overly complex funding landscape (highlighted by the UKs Energy and Climate Change Committee) is that money may be wasted. Vital that we maintain the momentum generated through the initial work to implement the recommendations of the 2009 Marine Energy Road Map through to the continued delivery of the additional recommendations in the 2012 Marine Energy Action Plan. Need to work closely with the Scottish Investment Bank and ensure our Renewable Energy Investment Fund is targeted appropriately to accelerate the future growth and development of the marine renewables industry.

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To further support the development and ultimate deployment of wave and tidal arrays, it is vital that the current facility at EMEC is fit for purpose and is able to meet the additional demand for test sites. The current facility therefore needs to be expanded to meet the additional demands of developers who want to test their wave and tidal devices. Further development is required to ensure that the industry is fully embedded within the Scottish supply chain. This will require standardisation, to some extent, of supply chain requirements and greater integration with the wider Scottish engineering sector.

KEY ACTIONS Work very closely with colleagues in the Department of Energy and Climate Change to avoid duplication and overlap in funding mechanisms for marine energy. Continue to work proactively with all our partners and key stakeholders to further drive the Scottish Governments commitment to producing sustainable renewable energy, through the continued support and development of EMEC, MRCF, REIF, WATERS2 and MESAT. Continue to further develop positive communication and engagement with contacts from within the energy industry and British-Irish Council to take forward and implement the key recommendations of the Marine Energy Action Plan.

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3.4 HYDROPOWER
RECENT SUCCESSES From 1 June 2011 the threshold above which applications for hydro stations have to be made to Scottish Ministers changed from >1 MW to >50 MW. This puts the hydropower threshold in line with other on-shore technologies and removes a perceived barrier to hydro development. Hydro generation in Scotland for 2011 was at a record high level with 5,310 GWh - up 62.6% on 2010 and up 8.9% on 2009 (previous record year for hydro). Scottish Government & hydro stakeholders responded to the FITs review consultations, successfully arguing for preliminary accreditation for projects; the extension of ROO-FIT accreditation for micro-hydro schemes; a new support band; and the amended definition of site which will ensure that remote hydro installations can access FITs on an individual basis. Publication of a Guide to Hydropower Construction Best Practice.

CHALLENGES Grid charges and queues remain an issue for hydro developers wishing to connect schemes, though the recent announcement from Ofgem on fast tracking of plans for over 7 billion of investment in Scotlands high voltage transmission network should help in longer term. Access to finance for community hydro projects. The sector needs stability and security from support mechanisms so that investment can be secured the Scottish Governments recent announcement on the outcome for hydro from its Renewables Obligation (Scotland) review should help provide that.

KEY ACTIONS Scottish Government has now issued its response to the Renewables Obligation (Scotland) Banding Review Consultation. The Scottish Government will work with Ofgem, SPTL and SHETL to deliver the essential grid upgrades. Continue to provide support through CARES loan fund for community hydro projects.

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3.5 BIOENERGY & ENERGY FROM WASTE

RECENT SUCCESSES The Invitation to Tender for Biomass Energy Supply Agreements was issued on 13 June 2012 via Public Contract Scotland and the OJEU. The deadline for applications was 2 August 2012. Waste (Scotland) Regulations were passed by the Scottish Parliament on 9 May 2012 and will require local authorities and businesses to present food waste for collection from most households and businesses. Presents significant opportunities for anaerobic digestion in Scotland. Increase in Feed in Tariff for anaerobic digestion schemes of 250 kW or less and those not exceeding 500 kW.

CHALLENGES Scotland has a limited domestic biomass resource. Sourcing sustainable (preferably local) fuel is essential. Need to ensure that progress towards target minimises impacts on other sectors. Public perceptions energy from waste and bioenergy can often be negative. It will be important to keep providing factual information through sources such as usewoodfuel and Zero Waste Scotland.

KEY ACTIONS Scottish Government has recently issued its response to the Renewables Obligation (Scotland) Banding Review Consultation and will work to implement these changes. Scottish Government to continue to work to influence UK Government policy on biomass to make case for plant which make best use of heat and of biomass resource. Continue to lead by example on the public estate Scottish Procurement to continue work on biomass framework for public sector. Work with UK Government to ensure that RHI provides adequate support for bioenergy technologies.

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3.6 COMMUNITY AND LOCALLY OWNED RENEWABLES

RECENT SUCCESSES Community Benefit Register opened for business April 2012 - will encourage transparency and consistency in community benefits process and help communities to negotiate with developers and understand better what can be achieved. CARES loans scheme - 42 projects offered loans totalling 4 million which will produce 56MW of renewable energy; 28.5 million available over next 3 years. A new 0.5 million package of support announced to encourage innovative solution to grid access. A new package of support for communities announced under REIF, to provide community renewables projects with access to loan and equity finance post planning to: o Help communities reach financial closure and maximise their contribution in community led renewable energy projects; or o Support community investment in larger scale commercial renewable projects Leading the way in terms of the community benefit rate for renewable developments on the public estate. The 5,000 per MW rate negotiated by Forestry Commission (Scotland) is more than twice the industry standard. At end June 2011, an estimated 147 MW of community and locally owned renewable energy capacity was operational in Scotland - represents nearly 30% of our 2020 target.

CHALLENGES Need to ensure that progress towards target minimises cumulative effects of wind projects. Need a balanced debate on public perceptions of renewables. Need to ensure that communities have the necessary advice and support to develop their own projects or get the best from commercial developments. Need to ensure that community benefits are considered at an early stage for offshore renewables projects. KEY ACTIONS Continue to lead the way in terms of supporting community ownership of renewables through the delivery of the Community and Renewable Energy Scheme. Act as an exemplar for community benefits from commercial developments on the public estate. Make significant progress towards our 500 MW target through offering a wide range of support via CARES to help communities progress projects. Progress policy on offshore community renewables by asking CRIG to consider and make recommendations to SG. SG working with Consumer Focus Scotland, and through support mechanisms such as CARES, REIF and Warm Homes Fund, to encourage both communities and developers to consider supporting fuel poverty measures with income from renewable projects, including from mainstream community benefits funds. Good practice already being implemented by a number of community groups, e.g. at Gigha and Fintry. In addition, we are aware of a number of developers who are starting to explore options to offer fuel poverty measures as part of their wider community benefits package. Building on CARES Urban Grant Scheme, from 2013 CARES will be offering an equivalent Rural grant scheme to community groups. This will complement wider measures to be introduced under the Warm Homes Fund to help registered social landlords and local authorities to address fuel poverty through revenue-generating renewables schemes. Initial stakeholder engagements have been carried out for development of the AgriRenewables Strategy, scheduled to be published in 2013. In the meantime, SG continues to fund programmes like Farming For A Better Climate (http://www.sruc.ac.uk/farmingforabetterclimate) and Future Proofing Scotland's Farming that (http://www.soilassociation.org/innovativefarming/futureproofingscotlandsfarming) provide independent advice on the development of renewables and energy efficiency on farms.

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3.7 MICROGENERATION
RECENT SUCCESSES Fergus Ewing, the Energy Minister, published the Microgeneration Strategy for Scotland on 22 June 2012, setting out a number of actions for Government, industry and other stakeholders. A Microgeneration Task Group made up of industry and consumer organisations has been set up to take these forward and met for the first time in September 2012. Alongside the Strategy, Mr Ewing announced a 5 million boost to the budget for Home Renewables Loans, and an increase in the amount available for renewable heat to 10,000. The loans are available until March 2013 through the Energy Saving Trust, who have seen a sharp rise in the levels of interest since the announcement. Nearly 1,400 Scottish households have been issued with vouchers through the UK Governments Renewable Heat Premium Payment scheme, with a total value of over 1 million, around 14% of the total number of vouchers issued across the UK. By the end of September 2012, over 21,457 domestic installations had been registered under the Feed in Tariff (FIT) in Scotland, totalling 77 MW installed capacity. Over 20,000 of these are for domestic solar PV.

CHALLENGES Constraints on the grid are restricting the amount of microgeneration that can be connected in some areas. Changes to the FIT and delays and uncertainties over the domestic RHI have impacted on market confidence and uptake of technologies. With a range of technology options available and different support mechanisms, clear, impartial and consistent advice is needed to build market confidence.

KEY ACTIONS Scottish Government has convened a Microgeneration Task Group, reporting to the Renewables Industry Leadership Group of the Energy Advisory Board to take forward the recommendations, monitor deployment, review progress against benchmarks and consider further actions. Scottish Government will work with the Microgeneration Task Group and Energy Saving Trust to provide comprehensive and coordinated advice and awareness raising on the financial mechanisms to support renewable energy and energy efficiency. The collaborative working group comprising the Scottish Government, community groups and the Scottish distribution network owners (DNOs - SSE and Scottish Power) will work together to identify innovative ways of maximising existing grid capacity.

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3.8 HEAT
RECENT SUCCESSES Updated our renewable heat database showing 3.8% of Scotlands heat demand came from renewable sources in 2011. Funded Fife and Perth & Kinross Councils heat mapping exercises using the same methodology as that used for The Highland heat map. Established an Expert Commission on district heating to promote the benefits and break down barriers to its deployment. District Heating Loan Scheme Last year 1.1m in loans was paid out to six district heating projects through the district heating loan scheme, this year we are offering loans to 10 more projects worth 2.1m which will help provide affordable heat to homes in fuel poverty, leisure facilities, community centres and a school. Published the results of the study into the recovery of heat from power generation in Scotland.

3.8 CHALLENGES Address continuing uncertainty in investment in the renewable heat sector brought on by delays in RHI. Break down barriers to delivering a transformational uptake of district heating in Scotland. Up-skill planners new to heat mapping and support planning authorities in planning for heat.

KEY ACTIONS Develop a comprehensive heat vision for Scotland, including a heat hierarchy of demand to encourage best practice, and a Heat Generation Policy Statement to consider scenarios for supply. Continue to engage with DECC until the full implementation of the RHI to ensure Scottish interests are reflected in the Scheme. Address the high capital costs of district heating infrastructure through the District Heating Loan Scheme, Renewable Energy Investment Fund (REIF) and Warm Homes Fund. Fast track exemplar district heating projects, linking to the Cities Alliance, Expert Commission on District Heating and REIF. Consider how best we can take forward the recommendations from the Expert Commission on District Heating. Roll out heat mapping methodology to other local authorities through a Scotland wide heat mapping programme.

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4. Supporting and Emerging Technologies

Introduction 4.1 This section refers to some of the emerging and existing technologies and methodologies which can support the deployment of renewable energy and enable the transition to a low carbon Scotland. Energy Storage 4.2 Electricity storage already plays an important role in optimising Scotlands power network system, with the pumped hydro storage facilities at Ben Cruachan (440MW, Scottish Power) and Ben Foyers (300MW, SSE). Energy storage will play an increasingly crucial role in enabling the power grid to effectively manage the increased proportion of variable energy inputs alongside interconnection and demand side measures. A wide range of technologies, at varying stages of development, and applicable at various scales offer options for storage, including hydrogen, compressed air, and batteries. 4.3 Energy systems balancing is also likely to play an enabling role which supports the effective integration of renewable energy. This makes use of technology opportunities to bridge between different energy systems, for instance with grid-to-gas using electrolysers to convert electrical power into gas energy for distribution via the gas networks. 4.4 Energy storage and grid balancing can also be supported with vehicle-to-grid using electrical power into batteries. This includes electric transport of all types, including the two CMAL zeroemissions 23-car vehicle ferries being built at Fergusons shipyard in Port Glasgow for use by Caledonian MacBrayne. These ferries are scheduled for deployment in 2013 on west coast ferry services. 4.5 Under the Electricity Market Reform proposals, DECC has committed to non-generation technologies and approaches, including storage capacity, playing a fair and equivalent role to generation in a Capacity Market. This represents an opportunity to exploit the cost-effective potential of storage to contribute to security of supply. We are working with the UK Government on the development of policy in this area. 4.6 The Scottish Government is engaging with engineering institutions and other expert stakeholders to get a better understanding of the mechanics, issues and costs involved in energy storage, as well as the effectiveness of the policy levers and proposals in this area. Hydrogen and Fuel Cells 4.7 Hydrogen is a highly versatile energy carrier with a wide range of applications, including energy storage, energy conversion, systems balancing, sustainable chemicals manufacture and sustainable transport. Hydrogen can enable Scotland to capture the full benefits of its enormous renewable energy potential, and deliver the significant economic benefits of a low carbon manufacturing economy. 4.8 Scotland has internationally significant academic expertise in hydrogen and fuel cells, and is home to a growing number of companies providing hydrogen and fuel cell technologies both in Scotland and internationally. The Scottish Hydrogen and Fuel Cell Association (SHFCA) now has over 60 member organisations, giving it one of the broadest bases of any hydrogen and fuel cell association in Europe, and plays a valuable role in promoting and developing Scottish expertise in these technologies. 4.9 The Hydrogen Office at Methil launched one of the UK mainland's first 100% green electric vehicle charging station in September 2011. The vehicle is charged by either the 750kW wind turbine on site or the hydrogen fuel cell when there is not enough wind. This means that no matter when the vehicle is charged it can be supplied by 100% renewable energy, and can be considered as a true zero emissions transport solution. The charging point is being used to support a Fife Shopping and Support Service van, which delivers groceries and other essentials to the elderly. 4.10 Scottish companies are playing a key role in understanding the potential use of hydrogen produced from renewable electricity as a zero-carbon fuel for use in the future decarbonisation of gas networks. SSE and the Scottish Hydrogen and Fuel Cell Association are both involved in the UK

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Technology Strategy Board funded feasibility study for the injection of hydrogen into gas networks and the opportunities this offers. 4.11 In August 2012 the First Minister announced that Scottish Government and Scottish Enterprise will support the Aberdeen Hydrogen Technology Project, which will demonstrate the benefits of an integrated hydrogen energy system, including Europes largest fleet of hydrogen fuel cell buses, storage of renewable energy, and grid balancing. The project, also supported by the European Commission and the UK Technology Strategy Board, will be delivered by a consortium of public and private partners including Aberdeen City Council, SSE, AREG, Stagecoach and First Group. This project will use hydrogen produced from renewable energy as the transport fuel, making it a true zero-carbon and zero-emissions sustainable transport solution that can deliver real air quality benefits to Aberdeen City. Geothermal 4.12 Deep geothermal energy may represent a substantial and almost entirely untapped resource in Scotland, and could help us achieve a number of our energy objectives. 4.13 We have commissioned research to examine Scotland's geothermal potential and to identify policy options for increasing commercial confidence in taking forward the exploitation of deep geothermal heat. The results of the study are expected to be published in Spring 2013. 4.14 Scottish Enterprise and Aberdeenshire Council recently completed a study into the potential for Enhanced Geothermal System energy in Scotland and the international economic opportunity it offers. The results of this study will help inform the Scottish Governments research. Scottish Enterprise will continue to work with stakeholders to monitor developments and work with Scottishbased companies so they can maximise any competitive advantage they may have as the international market for this type of energy generation grows. 4.15 British Geological Survey is working with Glasgow City Council to identify which parts of Glasgow would offer the best prospects of supplying geothermal energy; looking at the potential heat within minewaters, superficial deposits and bedrock aquifers beneath the city http://www.bgs.ac.uk/research/energy/geothermal/heatEnergyGlasgow.html. Results suggest 40% of the citys heat could be provided in this way.

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ANNEX A ENERGY EFFICIENCY ACTION PLAN PROGRESS UPDATE As highlighted in the Renewables Routemap, energy efficiency is the simplest and most cost effective way to reduce emissions. Hence the actions set out in the Routemap will be taken in tandem with the continuing drive to reduce demand. Progress Against Energy Efficiency Target Conserve and Save: The Energy Efficiency Action Plan for Scotland, published in October 2010, introduced a headline target to reduce end-use Scottish final energy consumption by 12% by 2020.
10

The maximum final energy consumption target in 2020 is 138,949 GWh, against a baseline of 157,896 GWh. The most recent energy trends data in December 2011 indicated that Scotlands final energy consumption reduced by 7.4% in 2008, and by 9.6% in 2009 against the baseline averaged over the years 2005 to 2007. This reduction indicates that we are on track to achieve our target. However, it is clear that the economic downturn has influenced this reduction and we remain committed to ensuring that energy efficiency remains a priority as the economy recovers.

Recent Successes The Action Plan covers a number of sectors, including domestic, business, transport and the public sector. Recent key achievements, as set out in the second progress report 11 include: A substantial increase in funding for Scottish Government fuel poverty and energy efficiency programmes - 65 million for each of the next two years, rising to 66.2 million in 2014-15, enabling us to continue the Universal Home Insulation Scheme, Boiler Scrappage and the Energy Assistance Package in 2012-13 and put new programmes in place for subsequent years. Our funding of the Carbon Trust led to Scottish businesses implementing measures in 2011/12 saving around 77 GWh of energy, generating annual cost savings of around 4.2 million. We fund the Energy Saving Trust to provide support to Scotlands SMEs to support energy efficiency measures and/or renewable technologies via small business loans of over 5 million in 2011-2012 to 190 businesses, delivering significant financial, energy and carbon savings. To support the delivery of regeneration projects, the Scottish Government has developed the 50m Scottish Partnership for Regeneration in Urban Centres (SPRUCE) investment fund, which includes 15m for energy efficiency retrofit projects in social housing, in conjunction with European Commission and European Investment Bank (EIB)

10

http://www.scotland.gov.uk/Publications/2010/10/07142301/0 http://www.scotland.gov.uk/Publications/2012/05/1684

11

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Annex B: Transport Our ambitions to harness our vast renewable energy resource could give Scotland an advantage in the development of electric and hydrogen fuelled vehicles in the long term and perhaps initially for niche markets, making Scottish ultra low carbon vehicles some of the greenest in the UK. Scottish Government ambitions for low carbon transport include:

Almost complete decarbonisation of road transport by 2050, with significant progress by 2030 through wholesale adoption of low and ultra low carbon vehicles; an electric vehicle charging infrastructure in place in Scottish cities by 2020.

We are also committed to promoting the use of Scottish sustainable biofuels for Scottish business to reduce emissions from heavy / specialist public sector vehicles, and have provided financial support to research and development in this area, including the establishment of the National Biofuel Resource Centre. Low carbon vehicles: Leading by example The Government has responded directly to feedback on the role of the public sector in promoting low and ultra low carbon vehicles and we have already taken the following positive steps:

Through the Low Carbon Vehicle (LCV) Procurement Support Scheme and membership of the UK Government's Plugged in Places Scheme, the Scottish Government has invested 8 million in LCVs and charging infrastructure over the past two years. This has enabled Scotlands public services to purchase around 270 LCVs and install over 300 charging posts across the country. E-cosse (www.e-cosse.net/) is a new partnership between government, WWF Scotland and key industry stakeholders such as Scottish Power, SSE, Siemens, Axeon, Allied Vehicles, Nissan and Toyota, to advance adoption of electric vehicles (EVs) in Scotland. It aims to establish Scotland as an EV pioneer, maximizing the economic, environmental and social benefits of EVs as an integral part of a sustainable transport system and a smart energy grid. The Scottish Green Bus Fund was launched in July 2010 with two rounds of the scheme completed. This has resulted in an investment of 5.8 million of funding which has been awarded to 8 bus operators for the purchase of 71 new low carbon buses. A third round was announced in August 2012 which has funding of 3m. Scottish Government and Scottish Enterprise supporting hydrogen bus and infrastructure project in Aberdeen (see Hydrogen and Fuel Cells section for details)

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RENEWABLES ROUTEMAP UPDATE ANNEX C EQUALITIES STATEMENT Introduction The Scottish Government is committed to the deployment of renewable energy in Scotland. This will create new jobs and support existing jobs, therefore, there are impacts for members of all underrepresented groups, including women. Data recently published shows that the energy sector is less diverse than the economy as a whole. 12 The Scottish Government believes that the growing renewable energy sector should reflect, and benefit from, the diversity of our population. This will allow the sector to grow in a way that embraces equal opportunities, allowing the talents and skills of women, and other minority groups, to be fully realised and thus help underpin this flourishing sector. Occupational segregation has a negative impact on the economy as well as limiting choices and level of achievement for women and men in their working lives. Eradicating occupational segregation is not just a question of progressing gender equality in Scotland; it will also help Scotlands overall social and economic wellbeing. If we fail to tackle the root causes of occupational segregation, economic growth can be stunted. Section 1 of this statement summarises briefly some of the available data in this area (set out more fully at the end of this annex), while section 2 of looks at some of the initiatives and organisations currently supporting equality and the role of women in the renewables sector, as well as some case studies and examples from specific organisations (provided by the organisations themselves). Meanwhile, section 3 sets out some of the relevant actions that the Scottish Government has been taking.

12

Energy production and Utilities: Sector Skills Assessment 2012, available http://www.ukces.org.uk/assets/ukces/docs/publications/evidence-report-62-energy.pdf

at

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1) Key statistics Summary Data supplied to the Scottish Government by three renewable energy companies has been conducted by the Crichton Carbon Centre on behalf of ClimateXChange, and is set out later in this appendix. The proportion of females within the energy industry workforce and their participation in energy planning, development and decision-making is generally low in the EU, UK and Scotland. In the EU, for example, the percentage of female employees in the energy industry is about 20%, most of them working in non-technical fields such as administration and public relations. 13 This picture is replicated in Scotland, where the Energy and Utility Skills reports that females account for only 17% of those working in the power sector, where there are high concentrations of female workers only in administrative & secretarial (ca. 70%) and sales & customer service (ca. 50%) roles. 14 Women are also underrepresented in STEM (science, technology, engineering, and maths) education programmes, and even more so in the STEM professional workforce. For example, in 2009, the proportion of female PhDs in engineering, manufacturing, and construction was only 25%. The percentage of women PhD graduates in science, mathematics and computing was 41%, as opposed to 52% in humanities and arts and 64% in education. 15 This trend was consistent across countries and different level jobs. In the UK, in 2007-2008, 33.4% of higher education graduates in STEM disciplines were female. 16 70% of female STEM graduates do not, however, work in STEM occupations after graduating. 17 The engineering sector has the highest rates of occupational segregation amongst all sectors in the UK with over 80% of its workforce comprising males. As the main skilled jobs within the renewables sector are in engineering disciplines (civil, marine, structural, and mechanical), leadership and management, project managers, turbine technicians and divers, it is important that more women are equipped with the necessary skills and experience to fill these vacancies. This means that women must have equal access to and receive education in areas important to the energy sector.

www.gendercc.net/fields/energy.html Energy and Utility Skills (2011). Sector Skills Assessment 2010 Scotland. www.euskills.co.uk/download.php?id=1323 15 EC (2009) She figures 2009: Statistics and indicators on gender equality in science. http://ec.europa.eu/research/press/2009/pdf/m09_519.en.pdf 16 UKRC (2010) Women and men in science, engineering and technology: the UK statistics guide. 17 http://theukrc.org/resources/why-gender-equality
14

13

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2) Women in engineering and the renewable energy sector As demonstrated by the statistics at the end of this appendix, data as to the precise numbers of women in the renewable energy sector is limited although such data as currently exists does support the conclusion that women are underrepresented within the sector. As section 1 points out, not only are women underrepresented in the energy sector as a whole, but they are also underrepresented in STEM (science, technology, engineering, and maths) education programmes. As a consequence, there is a shortage of women coming into education and training that will feed into the renewable energy sector. However, there are many examples of women coming into the renewable energy sector across Scotland. Many companies in the sector operate equal opportunities policies and are proactively employing females. This chapter showcases just some of the work that is going on to ensure that the talents and skills of females are brought into engineering, and the renewable energy industry. The Scottish Resource Centre for Women in Science, Engineering and Technology. Scotland has a world class reputation for innovation and research in science, engineering and technology (SET). These key areas of the Scottish economy provide exciting, well paid and challenging careers in the public and private sectors. Fewer women than men choose to work in these fields and those that do are more likely to leave at key points in their career. Women are underrepresented at every level in science, engineering and technology, in both education and employment. This leaky pipeline effect results in a loss of talented female scientists, engineers and technologists: 73% of women with science, engineering and technology qualifications are no longer employed in related occupations. It curtails the career aspirations and earning potential of many of Scotlands brightest young women. The Scottish Resource Centre for Women in Science, Engineering and Technology aims to increase the participation of women in SET education and employment. The Centre supports the recruitment, retention and return of women in areas of employment where they are significantly under-represented. Working across Scotland, the Centre offers consultation and advice for businesses and organisations to promote equality and diversity in the workplace. It provides training and career services for women at each stage of their career and supports female students throughout their education and to make the transition into the workplace.

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WiRES Women in Renewable Energy Scotland was founded in late 2010 by a small group of women who established the initiative in response to barriers they had encountered to their own progression within the field. WiRES was conceived with the aspiration of offering a space to provide support to women to overcome barriers to their professional development in this emerging sector. As a relatively new industry, pre-determined career pathways do not clearly exist in the renewables sector and the WiRES group realised there is an opportunity to for renewables to achieve a better gender balance than can be found across the energy sector as a whole. The WiRES forum is modelled on established networks in other industry areas such as Women in Property. Its primary function is to provide women in the renewable energy sector with an opportunity to network, explore and create opportunities within the sector and to develop their own knowledge and skills. As a relatively new initiative, the work undertaken so far by the WiRES steering group has focussed on establishing its aims and objectives, raising awareness of the forum through its own website, professional networking sites and also hosting networking and professional development events in partnership with other organisations. Three successful WiRES networking events have already been held in Aberdeen and Edinburgh, the most recent being a reception at the Scottish Parliament, which was supported by Close the Gap. Over 150 women participated in the reception from across the renewables sector. The steering group meetings are held every 6 months, with smaller regional meetings held more often. The steering group, which includes women from academia, industry, professional services, and employment and skills initiatives, is currently seeking funding to expand the services offered through WiRES.

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WiREs members Case study 1 - a female professional who works as a Contracts Advisor to an energy services firm, based in Aberdeen. She believes that the industry is a young sector, which provides international opportunities. It presents the same great salary opportunities as the oil and gas sector and career development scope as there are in general engineering industries, and scope for R&D activity and being at the forefront of a new and rapidly developing industry. However, there are the same entrenched gender roles as in engineering roles at present, and a lack of knowledge about the sector and the opportunities it holds. She believes that the sharing of information through groups like WiRES and getting information to school age girls and college and university students as well as wider advertising of the potential pathways into the sector are key. Companies wishing to attract women from other industries, i.e. experienced engineers, could consider the working models they use and the flexibility offered to working parents and those returning to work from a long period out of the industry i.e. mothers returning to work after taking time out to raise families. Case study 2 - Gail Watt - In house lawyer and project manager with an onshore wind developer and co-founding member of Women in Renewable Energy Scotland Gail left a career in private legal practice because she sought a change in direction and career in the renewable energy sector. The employment opportunities exist however the sector representatives, employers and the Government need to promote this effectively to raise the profile and highlight opportunities. However, she believes that there is a lack of encouragement and support for women entering the industry, from new entrants to women seeking to change direction and move into the industry. Such transitions can only be made with a shift in perception that these industries are not just the province of men, and this can only be done with active support and encouragement. She believes that an increase in promotion of the sector to young women in education, helping to challenge the established gender roles in STEM subjects. Having networking and supportive groups such as Women in Renewable Energy Scotland (WiRES) is a start, showing women that they do have representation in the industry, across all sectors regardless of status or situation. Highlighting champions in the industry would also help provide role models and mentors for women seeking to join the industry. Employers could engage at all levels; schools, universities, trade fairs and show that the industry isn't just for the boys and help to actively challenge the long established gender stereotypes within STEM - this applies not just in relation to the renewable energy sector but across the economy.

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Case study- Fiona Milligan, Project Manager, Infinergy (Inverness) Fiona joined Infinergy in a combined role as a project manager and PR and communications officer. Whilst renewable energy is a relatively small sector, she feels that opportunities within it are reasonably good. In some industries a high turnover of staff is seen as counterproductive, whereas in this industry it is a great asset. People learn a lot from the projects they work on and that knowledge can be passed on to other projects either within the same company or with others each project requires some pretty key skills but also can vary greatly in the additional skills required and thats where opportunities present themselves for those who are willing and able to be flexible and able to move about the sector. She also thinks that a great deal of the skills in this sector can be transferred readily to other sectors whether in energy or in something entirely different. In terms of the gender split of project managers at Infinergy it is fairly even, however this might not be entirely representative across the industry. She thinks that in some cases confident and intelligent women may have to push harder to be heard in some cases, but they will succeed ultimately and grow to be respected by their male counterparts and customers alike for getting the job done. Social networking groups such as WiRES hold events and provide an opportunity for women in the industry to connect right across the sector.

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Case Study Scottish Southern Energy

SSE Interns Catriona Fisher and Lorna OKane Both interns are 4th year students at the University of Strathclyde. Lorna is studying for a MEng in Civil Engineering and Catriona a MEng in Civil and Environmental Engineering. Both students held similar views with regards to females in renewables. As part of their University course, students are advised to find a summer placement to gain industry experience. A number of companies offer similar programmes, however it is up to the student to find their placement. SSE run a 10 week paid internship programme, which gives students and insight into different aspects to be considered from development of a site through to its construction. The students have been placed in the Civil and Environmental Engineering team within the onshore renewables department. So far as part of their placement, the interns have been carrying out research into construction techniques and dealing with Environmental Impact Assessments for a range of onshore renewable energy developments. They have also visited Strathy and Clyde wind farms. It was highlighted that a civil engineering position can involve a lot of travelling to project sites. This would perhaps present a limitation for anybody with childcare responsibilities. However, because much of the project work can be done within the office, this should not in itself present a barrier to females who wish to enter the profession. Over the course of a civil engineering career, a woman is free to do office based roles that would enable her to balance work and family life. Lorna began her degree in Civil Engineering, going to University straight from school. At school it wasnt made entirely clear what civil engineering was and she began by studying mathematics. She then transferred to the Civil Engineering. Catriona entered the degree programme in second year after completing an HND at college in civil engineering. She changed careers at a later stage and highlighted that more promotion could be done in schools highlighting the different options available in engineering and in the renewable energy sector and a better description of subjects. Both students are of the view that the sector presents excellent opportunities for females who would like to work in engineering. There is a perception that in general, more women are moving into engineering, and that the careers paths open to women entering the renewable energy sector are suitably diverse to accommodate women in the workplace. They felt that engineering as a whole needs to be emasculated at school level in order to encourage females and identify that it is not only a career choice for men. SSE- Amanda Brotherston Graduate Civil Engineer Amanda joined SSE in September 2011, after completing a BEng (Hons) Degree in Civil Engineering at the University of the West of Scotland, as an intern for the Corporate Innovation team on a one year placement. Towards the end of the placement she was informed of a permanent role in the Onshore Civil Engineering team and that graduates could apply. She was successful in her application and started this role in August 2012. Amanda does not see any limitations for women in the renewable energy sector, there have been many improvements during her own education to the acceptance of women in engineering disciplines and she feels with time further acceptance will continue. She believes that acceptance and respect in any role is built through knowledge, hard work and experience, regardless of gender. Amanda attended the WiRES (Women in Renewable Energy Scotland) conference held in September 2012 where the Cabinet Secretary for Finance and Sustainable Growth spoke of the opportunity to ensure the renewable Energy sector enthuses equal opportunities. This attitude from all will continue the improvements in awareness of roles and leave past stereotypes behind.

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Case Study - Scottish Power Renewables

Scottish Power operate equal opportunities within the workplace and actively encourages an inclusive approach for all employees during their employee lifecycle, - from recruitment and personal development of an individual until they leave the Company, regardless of any individuals race, sex, religion etc. Clare Hamilton - Project Manager, Onshore Development Clare joined SPR in July 2009 as an Assistant Project Manager, progressing to the role of Project Manager in February 2012. Her skills and knowledge developed through masters study and experience as a planning consultant were directly transferable to a role in the onshore development team where she is involved in the development of windfarm projects from the inception stage, through Environmental Impact Assessment and the consenting process. She views the renewables industry as continually developing with new challenges and innovations, meaning that there is always something new to learn and that there are many career development opportunities. All members of the SPR onshore development team whilst supported are allowed a substantial level of responsibility in the day to day running of project work, which she thinks is beneficial to ensuring knowledge and experience is gained across a variety of tasks. Working in the renewables industry provides the opportunity to interact with a variety of different stakeholders and professionals which means you develop a wide skill set in terms of how you interact and approach different people and groups, as well as providing an insight into different professional fields. Lindsay McQuade Head of Policy Lindsay joined ScottishPower Renewables (SPR) in 2006 as an Investment Manager, progressing to the role of Strategy & Markets Manager in 2009, and Energy Policy Manager 2011 and most recently Head of Policy (2012). As Energy Policy Manager, she was responsible for leading SPRs energy policy initiatives including the RO and EMR. As Head of Policy her role was extended to cover SPRs wider policy considerations taking in grid and regulation, planning, environmental and ecological issues for onshore and offshore wind as well as marine renewables generation. She views SP Renewables as a particularly attractive business area given the growth of business and the type of opportunity this presented. Since joining, SPR has transformed in a number of ways scale, personnel and ambition. It remains an interesting area to work in and continues to provide challenge on a daily basis. Sarah Graham Senior Electrical Engineer Sarah joined ScottishPower Renewables as a Senior Electrical Engineer in the summer of 2010. Her work with SPR is focussed on two of SPRs main UK projects West of Duddon Sands (which has now entered construction) and East Anglia. She provides a range of technical inputs to both projects, with a particular focus on the grid connection technical and commercial requirements. Sarah enjoys working in the renewable industry, and in particular the offshore wind industry, as she believes it is still a relatively new, developing industry so offers several opportunities. One of her main areas of interest is the grid connection of wind farms. Ofgem introduced a new regime for offshore transmission in 2009 so the work that she is currently undertaking for the East Anglia project is a new approach that is still is under development and there are only a small number of other parties undertaking similar work at the current time she finds this exciting and challenging. Sarah thinks that the renewable industry looks like it will continue to grow for many years and she is confident that this gives her good opportunities for career development.

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Case Study Steel Engineering The company Steel Engineering Ltd are the largest steel fabricator in the West of Scotland. Traditionally the company manufactured fabrication solutions for the oil and gas industry, nuclear, coal and conventional fossil fuel power station industries. But the company is now seeing Renewables as a key market. They have been working in the Renewable Sector for four years and built the first two Pelamis wave energy converters. This raised the companys profile within the renewable sector and allowed them to identify a number of long term opportunities. With the targets that have been set out for Scotlands Renewable future as a company we decided that we would support this sector and invest to allow the achievements to become a reality. Training Ethos The company has a long and well developed background in engineering and the philosophy that training and most importantly hands on training is vital to develop the skilled workforce they need to meet the future demands of the renewables sector. The company has a well developed Modern Apprenticeship programme and their philosophy is that there are no boundaries in respect of equal opportunities. Through the Invest in Renfrewshire Partnership Steel engineering have open recruitment programmes which allows young people a taste of the world of work and allow Steel Engineering assess if individuals have what it takes to train to become a highly skilled engineer or welder. These recruitment drives are open to all although traditionally the majority of applicants have been male. They recently recruited their first ever female modern apprentice, Nicole Mitchell. The company has embraced their new employee but recognised early on that they hade to make a number of adaptations to working practices in order to ensure Nicole's health and safety. The company has undertaken a risk assessment of its working practices and due to the lay out of the buildings and facilities at the plant, the apprentice is unable at this point to work a nightshift. While the company has always operated an open door policy at senior management level and has set grievance procedures these have been comprehensive enough to cope with the introduction of any new working practices. Skills for Success The Company fully realise the value of skills development in the growing renewable energy sector. Moreover, they recognise that youth unemployment is high, and that these young people have the potential to make a vital contribution to the delivery of Scotland's renewable energy ambitions. So much so that the company has also just opened their own Skills Academy. The Renewable Energy Skills Training Academy (TRESTA) took its first intake of Modern Apprentices in August. The recruitment process has been open, fair and has taken full account of equal opportunities. 230 people applied for the 10 positions, of these, 4 were female. Interviews were conducted by Job Centre Plus, and the 10 successful candidates were all male. The Future The Company views the renewable energy industry as a key opportunity for all in Scotland. The Managing Director of Steel Engineering Limited has commented that for the number of people that will be required to meet the Scottish Governments renewable energy targets, the industry will have to embrace equal opportunities. We still have much to do to encourage underrepresented groups such as women to embrace a career in Engineering. Engineering can offer a diverse and interesting career option for men and women alike".

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3) Scottish Government action The Scottish Government places a high priority on the issue of gender equality. This is demonstrated by the commitment to maintain the Scottish Governments Equality Budget at 2011-2012 levels over the next Spending review period of 2012-2015. In September, the First Minister and the Minister for Youth Employment hosted the first ever Womens Employment Summit in Scotland. The summit focussed on identifying positive steps that public sector bodies, employers, trade unions, other partners and women themselves can take to ensure that women can make their full contribution to Scotland's economic recovery. The a number of proposals have come from the summit and the Scottish Government and the Scottish Trades Unions Congress will be taking forward a number of short, medium and longer terms goals. These include the CareerWise funding referred to below as well as launching series of stakeholder led workshops chaired by Professor Sarah Carter of Strathclyde University to identify what can be done to increase the numbers of women starting up their own businesses. Traditionally, sectors that principally comprise engineers have been male dominated, while the energy industry is less diverse than the economy as a whole. Achieving equality in the emerging renewable energy sector is a challenge for all concerned. However, the Scottish Government is taking a number of steps to ensure equal opportunities for all minority groups in the sector, and beyond. Schools and Post 16 Education The Scottish Government firmly believes that science and engineering are key to achieving the overall purpose of creating a more successful Scotland. The nations prosperity will depend on young people getting involved in engineering, technology and science, becoming confident and competent graduates, well equipped with the skills and capabilities needed to meet the likely future demands of our economy. The sustained growth of the renewable energy sector grown on the platform of these skills and the system of higher education which provides them. In 2010-11, there were 25,145 HE students studying Engineering and Technology at Scottish HEIs or Colleges, with 12,185 studying at First Degree level. There were 12,095 HE entrants to study Engineering and Technology at Scottish HEIs or Colleges in 2010-11, with 3,775 entrants studying at First degree level A presence in schools to promote awareness of sector, and indeed promote engineering as a career option, is an important strand of work to promote equality and thus develop our skills base. On 12 September 2012 the First Minister announced 250,000 to develop Careerwise Scotland 18, a new initiative which will step up action to encourage more girls to consider careers in science and engineering. Careerwise Scotland will be funded through the Opportunities for All stream of the Young Scot Fund over the next 3 years.

18

http://www.scotland.gov.uk/News/Releases/2012/09/careers12092012

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Skills Skills Development Scotland has recently launched an Energy Skills Challenge Fund 19 designed to help meet the skills and training needs of the energy sector in Scotland. The 2 million fund will create an extra 1,000 flexible training places for Scotland's energy and low carbon sector. One of the conditions for firms and training organisations who bid for funding is that they must have an equal opportunities policy. The Scottish Government hopes that an open door policy at colleges and training academies will encourage more women into the sector. Community Renewable Energy All across Scotland, particularly in rural areas, communities are reaping the benefits from renewable energy. The Scottish Government has a target of 500 MW to be generated by community and locally-owned renewable energy by 2020. The benefits that can flow from renewable energy projects are massive, and do not discriminate. All individuals in our diverse communities can benefit. The Scottish Government run the Community and Renewable Energy Scheme (CARES) Community and Renewable Energy Loan Scheme (CARES), currently delivered by Community Energy Scotland. CARES includes a loans scheme, and one of the criteria for any community body applying for funding is that they must have an equal opportunities policy. The following selection of projects involving minority groups has been funded by CARES. In 2009, Badaguish Speyside Trust, who support people with physical and learning difficulties received support for two wood pellet boiler systems at Badaguish, one with 20m solar thermal panels. In 2009, Silver Birch Scotland, a charity at Milton of Campsie providing work experience to adults with learning disabilities, received funding to replace diesel minibuses with electric vehicles and offset electricity used by the new vehicles. They also received funding to provide heat and power for their buildings to be generated as much as possible on site. Also in 2009, Skye and Lochalsh Action for Disability (SLAD) received funding for an Air Source Heat Pump for Kyleakin Day Centre. Similarly, in 2010, Garvald West Linton, who provide residential care and creative day opportunities, were given funding for an 80 kW Vigas Log Boiler for a new residence. Logs are harvested from the groups 76 hectare estate, and residents and day users were given skills training to carry out the tasks involved in running the log boiler. Camphill Blair Drummond (CBD) provide residential and learning facilities for vulnerable young adults in Central Scotland in historic buildings at Blair Drummond. They are undergoing an extensive new-build and renovation programme and as part of this they applied for CARES funding for a feasibility
http://www.skillsdevelopmentscotland.co.uk/media-centre/press-releases/energy-challenge-

19

fund.aspx

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study to look at the potential for solar thermal, heat pumps and biomass district heating in their existing buildings. This year, Andalus, a Glasgow based community initiative who conduct a variety of activities to meet the needs and aspirations of Scottish Muslims, received funding for 6 square metres of flat plate solar thermal panels on flat roof and 100 mm of insulation above ceiling of flat roof of third floor of their building.

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4) Conclusions Achieving outright equality in an emerging sector is a challenge, which the Scottish Government and its partner agencies, and indeed the renewable energy industry, must take on. Through gathering data to monitor the levels of minority groups entering the sector we can obtain a greater understanding of the barriers to entering the sector, and thus develop policies and programmes to address them. The Scottish Government is aware that monitoring of equality groups across the sector is limited at present. We therefore commit to working with key stakeholders to monitor the numbers of women and all minority groups entering the sector. We will publish these findings annually as part of the update to the 2020 Routemap for Renewable Energy in Scotland.

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Key Statistics - Detail This analysis was conducted by the Crichton Carbon Centre on behalf of ClimateXChange, at the request of the Scottish Government. It was based on the limited data available, meaning that further work may be required to validate the results. These figures are based on data provided by three companies that responded to the Scottish Government request for gender employment data, where the 2012 data represent a total of 612 employees. According to a Scottish Renewables study 20, the renewable energy industry as of March 2012 supports more than 11,136 jobs in Scotland across all technologies. This includes wind, wave, tidal, bioenergy, solar, and hydropower, with 10,277 private sector posts in project design, development, operation and its supply chain, and a further 750 posts in academia and 150 posts in the public sector. As such, the data used here as a basis to analyse the numbers of females in the renewable energy sector is limited as it represents represents ca. 5.5% of Scottish jobs in renewable energy, or 6.0% of private sector based renewable energy jobs. Figure 1: Female employees as a percentage of the total workforce in 2012 DATA: Provided by Companies 1, 2 and 3 (2012 = 612 employees or ca. 6% of private sector posts).

Figure 1: Three companies provided basic data on the number of female employees within the total workforce. The three companies are of a comparable size, with an average of 204 employees (193, 204, 215). The percentage of female employees is broadly comparable across the 3 companies, ranging from 27.0% to 32.1% with an average of 30.2% (185 female employees in a total workforce of 612).

Scottish Renewables (2012) Delivering the ambition: Employment in renewable energy in Scotland. www.scottishrenewables.com/static/uploads/hidden_links/sr_jobs_report21032012_-web.pdf

20

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Figure 2: Growth and evolution of female employees 2009 to 2012. DATA: Provided by Company 1 (2012 = 215 employees or ca. 2.1% of industry jobs)

Figure 2a: Growth in total workforce and number of female employees 2009 to 2012. In the four year period from 2009 to 2012 the total number of employees at Company 1 increased from 124 to 215 (73% increase). In the same period, the number of female employees doubled, rising from 34 to 68 (100% increase). Figure 2b: Growth in percentage of female employees 2009 to 2012. The number of female employees as a percentage of the total work force at Company 1 has increased by around 5%, from ca. 27% in 2009 to ca. 32% in 2012. This increase occurred in the 3 year period from 2009 to 2011, with a slight decrease from 2011 to 2012 (although absolute number of female employees continued to increase from 2011 to 2012). While inferences should not be drawn from such a limited data set, this may be an early indication of a levelling off in the percentage of female employees.

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Figure 3: Female employees in junior and senior roles in 2012. DATA: Provided by Company 2 (2012 = 193 employees of ca. 1.9% of industry jobs). The percentage of female employees within the total workforce at Company 2 is 32.1% (the highest of the three companies that provided data to Scottish Government, see Figure 1). Company 2 also provided further information on the number of female employees within junior and senior roles within the company.

Figure 3: Of the 193 jobs at Company 2, 73 are categorised internally as senior roles (note: no information provided regarding the basis of this categorisation), with the remaining 120 referred to here as junior roles. The percentage of females in senior roles is 23.3% (17 of 73 roles), significantly lower than the overall percentage of female employees of 32.1% (62 of 193 roles). The percentage of females in junior roles is correspondingly higher at 37.5% (45 of 120 roles). Figure 4: Percentage of female employees by division and department. DATA: Provided by Company 1 (2012 = 215 employees or ca. 2.1% of industry jobs). It is noted that the data provided comprised percentage of female employees by division and department, with no information regarding either the job role being fulfilled or the number of employees in each division or department.

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Figure 4a: Percentage of female employees in the company and by division. The percentage of female employees within Company 1 is 31.6%. This female workforce is unevenly distributed across the company divisions, with a higher percentage of female employees in Corporate (Corp.: 59%) and Project Development and Business Services (PD&BS: 46%), and a lower percentage of female employees in Offshore (Off.: 22%) and Onshore Operations (On.Ops.: 22%).

Figure 4b: Percentage of female employees within the Corporate division by department. The Corporate division has the highest proportion of female employees within the company (Corp.: 59%), with all Corporate departments having a higher percentage of female employees than the company average: Human Resources (HR: 100%); Executive Team (ET: 75%); Financial Control (FC: 50%); and Legal (L: 50%).

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Figure 4c: Percentage of female employees within the Project Development and Business Services division by department. The Project Development and Business Services division has the second highest proportion of female employees within the company (PD&BS: 46%), with all PD&BS departments having a higher percentage of female employees than the company average: Commercial Contracts (CC: 33%); Policy and Innovation (P&I: 42%); Onshore Project Development (OPD: 59%).

Figure 4d: Percentage of female employees within the Offshore division by department. The Offshore division has a low percentage of female employees when compared to the company average (Off.: 22%). Within the division, Project Development has a higher percentage of female employees than the company average (PD: 35%). All other Offshore departments have a lower percentage of female employees than the company average, with no female representation in 3 departments: Supply Chain (SC: 25%); Operations (O: 15%); New Business (NB: 0%); Round 3 (R3: 0%); West of Duddon Sands (WDS: 0%).

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Figure 4e: Percentage of female employees within the Onshore Operations division by department. The Onshore Operations division has a low percentage of female employees when compared to the company average (On.Ops.: 22%). Within the division, 3 departments have a higher percentage of female employees than the company average: Business Support (BS: 100%), followed by Project Services (PS: 88%), and Land and Estates (L&S: 75%). All other Onshore Operations departments have a lower percentage of female employees than the company average, with no female representation in 3 departments: Technical Services (TS: 23%); Health and Safety (H&S: 17%), and Site Operations (SO: 3%); Operations (O: 0%); Construction (C: 0%); Technical Direction (TD: 0%).

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