Economy, Energy and Tourism Committee Inquiry into Scotland’s Energy Future

8/6/2019 Economy, Energy and Tourism Committee Inquiry into Scotlands Energy Future

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The Royal Society of Edinburgh, Scotland's National Academy, is Scottish Charity No. SC000470

The Royal Society of Edinburgh1

Scottish Parliaments Economy, Energy and Tourism Committee Inquiry intoScotlands Energy Future

1. The Royal Society of Edinburgh (RSE) is pleased to respond to the ScottishParliament Economy, Energy and Tourism Committees inquiry, Determining

and delivering Scotlands energy future. The Committees inquiry is timelyfor Scotland given developments and issues arising at the UK, European and

global political levels, particularly given the climate change imperative. It alsorepresents an important opportunity for the Parliament to engage with the

public on an issue of the highest priority. The Committee is already aware of

the importance that the RSE has attached to energy issues and it has been a

major component of the RSEs recent work, not least its wide-ranging Inquiryinto Energy Issues for Scotland(2006) and follow-on activities. Given the

similarity between the RSEs own inquiry and the remit of the Committees

current inquiry we urge the Committee to fully consider this body of work.

The following response draws upon this work and has been prepared by anumber of expert Fellows of the RSE under the direction of the General

Secretary, Professor Geoffrey Boulton. If the Committee wishes to discussaspects of the response further, the RSE could arrange for a number of expert

Fellows to be available for a meeting.

2. Although we are aware that electricity represents about one-fifth of the energyuse in Scotland; at this point we would also like to draw the Committees

attention to electricity generation statistics. When we met with members of the

Committee earlier this year it was apparent that there is misunderstanding and

sometimes misinformation in relation to the proportion of electricity deliveredby Scottish generators, in particular the actual contribution in GWh delivered

from renewable sources (especially sources of variable output such as wind)which must be considered in addition to the installed capacity for generation.

In the light of the meeting the Committee indicated that it would be extremely

useful if it could have access to robust data on generation. Professor Jim

Macdonald FRSE and the Institute for Energy and Environment at the

University of Strathclyde has collated such data on behalf of the Society. It isincluded as an appendix to this paper.

Scottish Research, Demonstration and Development capability3. In terms of determining and delivering Scotlands energy future, Scotland is

endowed with major research and development capacity that spans the energyspectrum, particularly within its institutions. In the UK, the University of

Strathclyde, judged in relation to the Engineering and Physical Sciences

Research Council (EPSRC) and Carbon Trust research income it receives, is

first in electricity transmission and distribution. The University of Edinburgh

is first in ocean energy1. The Scottish Centre for Carbon Storage (SCCS)

1Scientific Network of Excellence in Energy; Scottish Science Advisory Committee; December 2006


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(located at the University of Edinburgh, Heriot-Watt University and theBritish Geological Survey) is first in geological storage of CO2. The

University of St Andrews is second in energy storage. Petroleum Engineeringat Heriot-Watt University is internationally pre-eminent in hydrocarbon

exploitation. Also, The Sustainable Power Generation and Supply initiative

(Supergen) research consortia in marine energy, in highly distributed powersystems and in energy storage are each led by Scottish universities. Crucial to

the pull-through of energy technology is the need for the research and

development community to be close to leading development and

demonstration facilities as well as energy sources. In Scotland such facilities

include the European Marine Energy Centre (EMEC), the PURE EnergyCentre on Unst, the Scottish Enterprise Energy Technologies Centre, and the

University of Edinburghs curved wave tank. Doosan Babcock at Renfrew isunique in the UK as an international research and test facility for cleaner coal

combustion and CO2 capture. Furthermore, pull-through and

commercialisation is being aided by the Intermediary Technology Institute

(ITI) in Energy, which funds and manages early stage research anddevelopment programmes across the energy spectrum, including renewables,

power networks and energy storage. The Energy Research Partnership (ERP)

is a developing collaboration between all of Scotlands Universities engaged

in energy research.

Scottish Energy Strategy4. In its Report of 2006 the RSE strongly recommended that there should be an

energy strategy for Scotland, although this should be nested, for maximum

impact and efficiency, within those aspects of energy responsibility shared

between the UK and Scottish Governments, and bearing in mind that the

European dimension is becoming increasingly important. The Scottish

Government has substantial powers to determine energy strategy through its

responsibility for promotion of renewable energy, encouragement of energy

efficiency, and its powers to grant consent of new electricity generation andtransmission infrastructure. However, an economically and technologically

optimal strategy should ensure that a Scottish strategy takes maximumadvantages of UK and European connectivity. Although many governmental

policies have energy implications, there are limited explicit links between the

many initiatives from different parts of the Scottish Government and no

obvious integrated overall strategy. For example, current developments such

as the Scottish Governments activities and proposed emissions targets onclimate change and proposals for a Scottish Marine Bill have energy

implications that need to be borne in mind within an overall energy policy. We

remain of the view that a comprehensive and integrated strategy for energy isan urgent priority and should be developed soon. Such a strategy should guide

Scottish Ministers in their decisions on energy. It should also re-assure thepublic and industry that decisions on all aspects of energy are contained within

a clearly articulated framework, rather than in an ad hoc and uncoordinated

manner, as has been perceived to be the case in the past. In its Report the RSE

proposed the strategic aim of a secure, competitive, socially equitable andlow carbon emissions supply of energy for Scotland, comprising policy

objectives that embrace energy efficiency and energy savings, ensureenergy


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availability, and capitalise on the natural energy resources of Scotland in aneconomically viable and environmentally sensitive way.

5. To achieve this aimit should be recognised that over-emphasis on a concept ofScottish energy self-sufficiency or failure to utilise efficiencies of scale could

be damaging to the Scottish energy system, to its achievement of emissionstargets and to its economy. Our targets should be to minimise emissions and

cost, and to maximise energy security, sustainability and the economic benefit

we might gain through exploitation of our R&D capacity irrespective of the

ultimate source of energy. The approach should encourage interdependency

within the UK, European and global markets. Such an approach should bringtechnological benefits to Scotland, stimulate enterprise and deliver social and

environmental gains.

6. In this context, the Scottish Parliament and Government as well as Scottishorganisations operating in the energy domain have to be aware of

developments at the European level as well as those within the UK that willinfluence energy policy. Some examples of developments at the European

level include: liberalisation and regulatory reform of the energy markets;

proposed environmental directives such as the EU Industrial Emissions

Directive, National Emissions Ceiling Directive and the Revised WasteFramework Directive; and strategic initiatives such as Trans-European Energy

Networks and FP7 etc.

Reducing demand for energy and energy efficiency

7. A key strand of energy strategy must be reducing the demand for energy aswell as a focus on energy efficiency. In its Report the RSE identified the need

for an improvement in the efficient use of energy in reducing the use of fossil

fuels in space and water heating, and in transport. Reductions in total energy

demand, both in terms of demand reduction and improved efficiency, will

produce proportional reductions in the overall energy required. Demand-sidereduction is an incredibly important but complex area and effective cross-

cutting engagement and action across government departments is essential.This conclusion was also reached in a Scottish Executive Report of 20072. The

possibilities for energy savings are enormous but the primary obstacle is

behavioural change. Behaviour change requires a package of education,

information and financial incentive measures. Whilst energy efficiency is

important, and can be stimulated through regulation, the focus must be ondemand reduction, bearing in mind that there is frequently a rebound effect in

domestic usage. An example of this would be the driver who replaces a car

with a fuel-efficient model, only to take advantage of its cheaper running coststo drive further and more often. Rebound effects in commercial usage are not

inevitable if the objective is to reduce cost. Therefore, it is important thatrebound effects are factored into policy assessments.

8. Most of this evidence is concerned with electricity supply. This issymptomatic of the history of energy policy in the UK, where the supply of

heat is largely ignored. We consider that a much more detailed consideration

2Evaluation of Energy Efficiency Policies and Programmes; The Scottish Executive; March 2007


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of heat supply, followed by innovation, is needed in Scotland (see 19 below).This could, for example, be 1) in the use of biofuels for heating in rural

regions off the gas grid, 2) in the use of waste heat to supply local industrieswithin 30km of existing large power plants, 3) the design of integrated district

heating as part of the planning process during re-developments such as east

Glasgow. All of these aspects are well established in Scandinavian countries.

9. The RSEs Report indicated that there are multiple energy efficiency schemes,with low take-up, and hence the need for more efficient administration and

coordination. In this light we note and commend the recent Scottish

Government announcement on the setting up of the Energy Savings Scotlandadvice network which will provide free advice on energy efficiency,

sustainable transport and small scale renewables. In addition to this, wewelcome the Scottish Governments continued commitment to publish an

Action Plan for energy efficiency and microgeneration and urge the

Committee to engage with the Scottish Government on this and ensure

implementation of the Plan is forthcoming.

Diversity and security of supply of energy sources10.A diversity of energy sources is absolutely essential and this was a key

recommendation of the RSEs Report. There is no silver bullet and allavailable sources and technologies will need to be considered as part of the

energy mix, including renewables, clean technologies for fossil fuels andnuclear powered generation. One key question is the debate of electricity

supply from fossil fuels, renewables, or nuclear sources. There is no

requirement that all three sources are part of a Scottish mix, but choices to

ignore, or de-emphasise, nuclear power means that fossil fuels must be rapidly

decarbonised in Scotland, and that a large capacity of renewable generation

has to be researched, encouraged, consented and connected at an electricity

price competitive with the rest of the UK and EU. If nuclear energy is to be

phased out, and if Scotland is to meet its emission targets, the provision ofsecure baseload in Scotland will depend upon the hypothesis that carbon

capture and storage (CCS) technology can be developed successfully andimplemented in Scotland. We strongly emphasise that a diversity of supply is

essential to achieve maximum security and flexibility. Partitioning of thinking

with regard to technology options and choices should be avoided as there are

interesting opportunities for making progress towards a much higher degree of

sustainability. To prepare for the longer term, investment in the developmentof alternative sources and cleaner technologies is essential.

11.As part of this there would also need to be greater use of local energy sourceswhich are capable of reducing costs, reducing environmental impact and

increasing security of supply, and resilience to fuel supply shortages orcentralised supply and distribution outages. There is considerable opportunity

for distributed energy systems in many parts of Scotland to create semi-

autonomous networks. This could range from large-scale district heating or

CHP in the major settlements to microgeneration facilities utilising renewable

energy sources in the remoter areas of the mainland and on the islands. The

statutory planning framework has not been effective in promoting the use ofwaste energy, or the development of district heating and CHP schemes. The


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utilisation of substantial waste heat from industrial processes or from powergeneration should be stimulated. We commend the innovative initiatives in

Lerwick and Wick and new technologies available for obtaining energy fromdomestic and other waste.

12.With the need for large-scale replacement of electricity generating plant inScotland and the UK within the next ten years, decisions on the viable optionsare urgently needed. In its Report the RSE recommended that due to a lack of

robust procedures for assessing energy technologies and a lack of objectivity

in assessments that are undertaken that a common methodology should be

developed to assess the relative merits of energy technologies. Factors such asstate of technology, infrastructure requirements, security of supply, carbon

benefit, environmental effects, cost to the consumer as well as full lifetimecosts should be considered.

Nuclear generation

13.Subject to agreement on implementing a satisfactory solution to the very long-term treatment of radioactive waste, the RSE strongly encourages the UK and

Scottish Governments to keep open the nuclear generation of electricity option

in the interests of diversity and security of supply, and suppression of

greenhouse gases. Electricity generation from nuclear is a significantcomponent of Scotlands electricity baseload supply portfolio and will remain

so until 2023 when Torness is due to close. In addition, any decision to extendthe life of existing nuclear plants should be made on the basis of safety and

technical information. With regard to the UK Energy Bill, the UK

Government has indicated that the companies should bear the cost of new

nuclear, including disposal of the waste, and companies have reiterated that in

any proposals they make, waste disposal and decommissioning will be taken

into account. If, however, Scotland were to achieve greater devolution from

the UK, or were to become independent, then it may become necessary to

negotiate waste treatment and long term waste disposal in another part of theUK; or to develop an expensive and difficult parallel programme in Scotland.

The Scottish Governments refusal to accept the CoRWM proposals for deepgeological disposal of waste could prove very problematic if sustained.

Carbon Capture and Storage (CCS)

14.The Committee will be aware of the crucial priority that the ScottishGovernment is attaching to CCS technology in Scotland. Given that the worldwill continue to derive energy from fossil fuels for the foreseeable future we

welcome the Scottish Governments commitment to CCS technology and its

decision to part fund a commercially-oriented study led by the University ofEdinburgh to look at CO2 storage and Enhanced Oil Recovery options in and

around Scotland. In addition, Scottish Power, with the SCCS at Edinburgh, isleading a large research programme to develop methods of storage site

selection and appraisal for CO2 from coal plant. The announcement in 2007 by

BP to cancel plans for its Peterhead hydrogen power scheme was an untimely

blow as the scheme was a major opportunity in Scotland not only in terms of

hydrogen development but also carbon sequestration and enhanced oil

recovery. Consequently, there has not yet been a world demonstration of CCStechnology on a power plant scale. The first pre-combustion coal and gas


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plants are expected to be demonstrated during 2012/3 in California and AbuDhabi. Post-combustion gas plant may be demonstrated in Norway during

2013. It is vital therefore that an energy strategy for baseload electricitycapacity, must recognise the risk that CCS technology will not necessarily be

available to minimise emissions from carbon-based fuels. If CCS remains a

critical part of Scottish electricity supply strategy, then significant additionaleffort will be needed to promote its demonstration, and especially deployment,

in Scotland at an early date, and to encourage the required major investment so

that Scotland is amongst the worlds leaders in this. A back-up strategy needs

to be maintained in case CCS proves unexpectedly expensive, slow to

develop, publicly unacceptable or (in the worst case) fails to work at sufficientscale.

15.At the UK level the House of Commons Environmental Audit Committeerecently reported on the prospects of CCS

3. Its Report recognises the very

large potential that CCS can play in emissions reductions but it also

importantly stresses that progress to date has been slow and that it is not clearwhen, or indeed if, CCS will be technically and commercially available. A

submission from the UK Energy Research Centre indicates that CCS is now

commencing the early pre-commercial demonstration stages worldwide, withthe objective of wide spread routine commercial deployment by 2020-2025.

The Committee was rightly concerned about providing consent to new coal-

fired power stations without CCS technology being available, and also

recommended that Government needed to set a deadline for the cessation of

unabated coal-fired generation. It also stated that the EU-ETS carbon price

might not be enough to incentivise the development and deployment of the

technology and that further Government intervention will be required during

the demonstration period. The current UK strategy is focused on a competitionto demonstrate CCS on just part (400MW) of one coal plant by 2014. It is

certain that one, or potentially three, of the four short-listed entrants coulddemonstrate their plant in Scotland, but none are guaranteed to win. A key

world-class resource offered by Scotland is the proximity of well-known, high

quality, and large, geological storage sites beneath the North Sea. This can

offer economic growth potential to industries and additional exploitation of

offshore hydrocarbon resources, of which over 90% are located in Scottish

waters. A key blockage is the pricing of decarbonised electricity at a long

term (15 yr) to enable developers to operate the demonstration plant without

making a loss. Therefore there is scope for Scotland to investigate devolved orEU incentives to capture one or more of these demonstrations within or

outside the UK competition. These may be price supported by ROCs, feed-intariff, subsidy by recycling of EU-ETS auction income to the UK, or

allocation of EU-Allowances to reward CO2 stored. Scotland has a real

opportunity to be a world leader in the demonstration of CO2 capture and

storage technologies, and also in the use of subsurface resources for storage on

an EU size scale, and in the adaptation of offshore engineering and offshore

geological and geophysical surveying. We therefore urge the Economy,

Energy and Tourism Committee and Scottish Ministers to collaborate with

Scotlands significant research and industrial base in investigating and

3 Carbon Capture and Storage; Environmental Audit Committee; Ninth Report of Session 2007-08;

July 2008


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determining the opportunities that Scotland could exploit in rapidlyaccelerating the development and demonstration of CCS technology. It is

important that strategic research and development capacity continues toincrease and is well-connected between university and industry.

Renewable energy16.The majority of the UKs natural resources in wind, hydro, marine and

biomass energy are found in the north of the UK. This is illustrated by the fact

that 50% of the UK renewable energy production is sourced from Scotland4.

Renewable sources of energy are a key contributor to energy supply needs

because they reduce whole life CO2 emissions from overall electricityproduction and also crucially, increase the diversity of fuel resources and

hence security of supply. The Scottish Government has recently increased itschallenging target for the proportion of Scotlands electricity to be generated

from renewables from 40% to 50% by 2020. Furthermore, according to the

DBERR consultation on the UK Renewable Energy Strategy, subject to

planning permission, there is an expectation that a large proportion of onshorewind development will take place in Scotland. Consequently, there are

significant prospects as well as challenges for Scotland in utilising its natural

resources as components of the energy mix. It must be recognised that

abundance of resource does not necessarily result in its utilisation as thatresource must be harnessed efficiently and at a competitive cost.

17.The exploitation of renewable energy offers significant opportunities foreconomic growth from manufacture and export, as well as providing

employment in site development, management and maintenance. At present

there is a realistic prospect for Scotland to develop a leading marine

renewables industry, but this will only flourish if the right environment,

including maximising bureaucratic efficiency, is provided: a substantial

domestic market, with stable trading conditions to encourage steady growth.

Initial costs will be high and technical risk significant. Both will reduce overtime as the industry matures. The experiences of wind power exploitation are

relevant here. A sizeable public investment is required in the early stages, withfinancial returns beginning to emerge after perhaps ten years. In the case of

wave technology, devices that have been developed and demonstrated are

highly subsidised. The Pelamis project in Portugal is subject to a guaranteed

price for its electricity for 15 years.

18.Basic research, e.g. into wave behaviour, needs to be enlarged, whiledevelopment and implementation costs are mostly prohibitive. Uncertainty

about real future costs, particularly the installation, operating and maintenancecosts is a major problem. Turbine prices are increasing as global demand

expands, reliability is uncertain and raw material prices are high. It isimportant that work take place to establish whether some of the above risks

can be mitigated, by a regime of capital grants and adjustments to economic

instruments.

4

The Energy Technologies Partnership, Expression of Interest in Support of the UK EnergyTechnologies Institute; February 2007


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19.With regard to the deployment of offshore wind, wave and tidal technology,ultimately, the gap between capital costs, expected operational costs and

revenue still remains too large for substantial industrial commitment, withoutimprovements in the ROC system. The ROCs regime is designed to be

technology neutral and encourage diversity of electricity generation. However,

undifferentiated ROCs will always lead to industry employing the lowest costoption. As a result, onshore wind turbines have become commercially viable,

but this mechanism has not stimulated development of other renewable

sources other than for local use. The RSE has commented on the ROCs regime

in its Report of 2006 as well as in recent consultation responses5.

20.Much has been made of the potential of renewable supplies of energy forScotland and the UK, but this has been unduly focussed on electricity withinadequate consideration of other higher energy-use sectors, particularly

transport and heating. In Scotland, the Forum for Renewable Energy

Development (FREDS) Renewable Heat Group has recently reported6

and

identified recommendations for the key components of a Scottish renewableheat strategy, including the structure of the market, technologies review and

mechanisms for supporting renewable heat. We recommend that the

Committee carefully consider the findings of the Report with a view to

bringing forward the renewable heat strategy.

Planning

21.The planning system, public consultation and the democratic processgenerally, specifically in relation to onshore wind farms, form the greatest

barriers to increased deployment of renewables. The locations of renewable

energy devices, and in particular onshore wind turbine installations, are

controversial because of their impact. We are particularly concerned that

decisions on the location of renewable energy facilities are taken on an ad hoc

basis using the town and country planning system which was not designed for

this purpose. We strongly support the recommendation of the RSE EnergyInquiry on the need for a locational strategy for renewable energy and this

argument is strengthened by the proposals from DBERR in relation to onshorewind in Scotland. There are signs that this position may change with the

advent of the draft National Planning Framework but many applications have

been through a planning system which was not designed to cope with the

volume of applications and has not been updated to allow effective

representation by objectors or speedier decision making which is in theinterests of all parties. A strategy for the location of renewable energy

installations is still urgently needed within the framework of a comprehensive

energy strategy for Scotland.

22.Furthermore, in terms of developments impinging on communities, naturalheritage and the environment, perhaps some form of compensation or

5Select Committee on Economic Affairs Inquiry into The Economics of Renewable Energy; June

2008; Scottish Government preliminary consultation on theIntroduction of Banding to the RenewablesObligation (Scotland); July 20086

Renewable Heat Group Report (FREDS) 2008; "Scotland's Renewable Heat Strategy:Recommendations to Scottish Ministers"


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reparation payment could be developed to ensure that the impact is kept to aminimum and those directly affected can derive direct benefit. As examples,

the Shetland Islands receive income from the North Sea oil revenues that hascontributed to an improved economic state and infrastructure, and in Denmark,

local attitudes to onshore wind installations softened substantially when

electricity costs were reduced to hosting communities.

Transmission infrastructure

23.Grid access, connections and transmission infrastructure, and the technicaldifficulties in maintaining quality of supply in remote areas, are very

prominent barriers to realising Scotlands renewable potential. Wherever andby whatever means electricity is generated, it must be delivered to the market.

The greater the diversity and distribution of generating plant the greater theneed for investment in grid development and increased in-grid management

costs. The significant sources of renewable energy tend to be remote from

major demand centres and grid access points, thus requiring heavy investment

in EHV grid extensions and consequential delays to connection. In terms ofthe GB Queue which mainly exists in Scotland, there are approximately 9.3

GW of wind energy applications awaiting connection7. Ofgem and DBERR

have recently completed their Transmission Access Review8. We hope that the

Review results in better access and operation arrangements in practice andprovides greater certainty and incentivisation to all those involved. Ofgem and

the industry need to take this work forward. New technology and adaptationwill be required for multi-directional flows of power in HV distribution

systems where renewables are closer to load centres.

24.The two large Grid infrastructure projects with major implications forScotland are the proposed transmission line upgrade between Beauly and

Denny, and the North-South transmission system upgrade. Currently the flow

from Scotland to England is limited to 2.2 GW. Offshore transmission routes

should also be considered. It is crucial that decisions for investment in the gridinfrastructure are made timeously by the industry, regulators and Scottish

Ministers to lead the connection of renewable generation technologies andensure coordination of construction activities to avoid stranded assets. Without

major changes to the Grid system renewable energy will be unable to make the

contribution necessary to meet Scotlands long-term aspirations. There is also

an issue of the flow from England to Scotland, which has an even lower limit.

One backup strategy for no nuclear, or no CCS, could be to increase theEngland to Scotland capacity, so that there is an option to purchase electricity

from England or the EU, if Scotland has temporary outages at peak load, or if

Scotland fails to develop adequate baseload.

Storage

25.Major research, development and demonstration in energy storagetechnologies is needed to meet the needs of increasing intermittent renewables

in the system and to balance supply and demand. Pumped storage

hydroelectricity is the only proven large scale energy storage mechanism and

7

Renewable electricity generation technologies; Innovation, Universities, Science and SkillsCommittee; Fifth Report of Session 2007-08; June 20088

Transmission Access Review Final Report; Ofgem & DBERR; June 2008


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has been operating for decades. Pumped storage offers a crucial back-upfacility at periods of high demand due to its flexibility and could be used to

store power from intermittent generators at periods of low demand. Ifrenewable electricity from wind, wave and tidal power continues to develop,

there is the possibility of large over production at off-peak periods. This must

either be stored, sold or dumped. These effects do not seem to have been fullyevaluated. There is scope for integration into the overall supply strategy for

example cheap off-peak electric heating for fuel-poverty households, or

recharge of batteries for electric and hybrid vehicles to displace transport

emissions.

26.Electrochemical technologies provide some of the most practical solutions.For larger scales, redox flow fuel cells have particular potential and are being

developed by Plurion in Scotland with support from ITI Energy. For smaller

stationary applications and mobile applications in particular, modern battery

technology, based on either lithium or on nickel-metal-hydride is being

considered. There is considerable expertise in this field in Scotland in StAndrews University.

Transport27.Twenty-eight percent of energy demand in Scotland is from the transport

sector with road and air transport dominant. Transport fuel is primarily oil

based and in its Report of 2006 the RSE indicated that most commentators

consider that oil-based resources will remain the main fuel source for the next

25 years, with gradual market penetration of biofuels, hybrid engines, and

hydrogen. The transport sector also produces the largest emissions of

greenhouse gases after energy supply and land use; for the UK as a whole this

is about 20% of total emissions. Any energy strategy for the transport sectorshould, therefore, focus primarily on the reduction in carbon and other

greenhouse gases, and in higher fuel efficiency; these two components shouldgo hand-in-hand. In its Report the RSE considered that a range of incentives

and restrictions are needed to stimulate the market for hybrid engines,

technologies to capture energy from otherwise wasted sources such as braking,

incentives for higher car occupancy, and measures to reduce speed in order to

reduce consumption. In terms of public transport, there is also a need for more

flexible fleets capable of adjusting to variable levels of passenger use,

especially at off-peak periods. We recognise it will take time for new vehicles

and new fuels to become commonplace and the need for joint working withthe motor industry and other relevant stakeholders.

28.There is potential in hydrogen as an energy vector for transport applications inthe longer term provided that it is produced from low carbon emissions

sources. Widespread applications of hydrogen technology require major

investment in production, transport and storage infrastructure, and stimulation

of demand. More medium term use of hydrogen for transport includes using it

in a normal combustion engine. Public transport is particularly amenable to

hydrogen fuel cell implementation as there is much less need for a distribution

network and storage in buses is easier to implement. The major European

HyFLEET:CUTE

9

project involves the operation of hydrogen fuel cell9

http://www.global-hydrogen-bus-platform.com/Home


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powered buses as well as hydrogen powered internal combustion engine busesin cities around the world and also focuses on the development and testing of

hydrogen refuelling infrastructure. Also, despite its relatively small scale, thePURE Energy Centre on Unst is involved in the research and development of

hydrogen technologies, and has utilised wind power to extract hydrogen from

sea water and use it in conjunction with a fuel cell. However, the problem ofhydrogen storage is the primary issue and work on identifying hydrogen

storage materials continues worldwide, including here in Scotland. The

Hydrogen Energy Group established by FREDS reported10 on opportunities

for Scotland in this area. We recommend that the Committee should look to

build upon current capabilities and stimulate further development in Scotland.

29.In terms of the potential from biofuel, current biofuel (biodiesel, bioethanol)production is proven technology and therefore provides a basis for production

of non-fossil transport fuels. The Royal Society of London recently published

a comprehensive report11

on the science and technology prospects of

delivering efficient biofuels for transport in the broader context ofenvironmental protection and sustainability. That Report shows that biofuels

are potentially an important part of the future although the existing policy

frameworks and targets may not result in greenhouse gas reductions and wider

environmental and social benefits. It is a very complex picture as differentbiofuels have widely different environmental, social and economic impacts.

Whole cycle analysis is required for the different biofuels to assist indetermining these impacts. Future biofuels are likely to be produced from a

much broader range of feedstocks, including agricultural by-products and

domestic vegetable waste. Advances in the conversion process will improve

the efficiency of producing biofuels. We urge the Committee to consider the

Royal Society of Londons Report.

Skills development needed

30.A major hindrance and threat to the development and commercialisation ofenergy technologies in the UK is the lack of technically-skilled people. There

is a deficit below requirements in those studying and graduating inengineering as they once did. This is equally true for energy engineering, and

must be addressed if Scotland is to determine and deliver its energy future. As

part of this, the government must investigate the skills crisis and introduce

initiatives to act as a catalyst to introduce new students to energy-related

discipline areas. The Innovation, Universities, Science and Skills Committeehas been undertaking a wide-ranging inquiry into engineering and the findings

are eagerly awaited. In Scotland, some effort has also been made by the

Scottish Enterprise, High Technology Talent Strategy Board. Thegovernments Knowledge Transfer Partnership programme is a most effective

enabler for knowledge transfer and a flagship programme could usefully beestablished in the area of new and renewable energy systems. Such an

initiative would both bridge the industry/academia gap and help with the

training of new graduates.

10 Hydrogen and Fuel Cell Opportunities for Scotland; Hydrogen Energy Group (FREDS); 200611

Sustainable Biofuels: Prospects and Challenges; January 2008


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Conclusion31.As outlined above, there is a great deal of research, engineering, development

and industrial capability presence in Scotland which is already contributing tothe future delivery of energy in Scotland and the Committee must ensure that

this remains the case. We remain of the view that a Scottish energy strategy

that recognises interdependency within the UK, European and global energymarkets should be developed as a matter of urgency. Reducing demand for

energy and increasing energy efficiency should be a strategic priority and the

Committee should press the Scottish Government to publish its Action Plan

for energy efficiency and microgeneration. We feel that the need for a

diversity of energy sources cannot be overstated and all viable sources andtechnologies will need to be considered as part of the mix. It could be

argued that Scotland currently has a high-risk approach to energy generationas it depends upon assumptions about the rapid growth and low cost of

renewable generation and the successful and cheap tractability of carbon

capture and storage as a means of continuing to use fossil fuels as the reliable

core of energy generation whilst decreasing its emissions. As insuranceagainst possible failure, up-grading of the transmission link with England

should be considered. If the current, implicit approach proves fallible, it has

the potential to place severe curbs on economic and non-economic growth and

competitiveness. Increasing energy costs could, however, be offset if thedistinctive component of the Scottish energy strategy, its stress on the

potential for innovation and economic benefit in a changing global energyregime, could be stimulated through the development and introduction of

novel technologies.

Additional Information and References

This submission represents the views of an expert Working Group of RSE Fellows,and not necessarily the views of all of the Fellowship.

In responding to this consultation the Society would like to draw attention to the

following Royal Society of Edinburgh responses which are of relevance to this

subject:

The Royal Society of Edinburghs Inquiry into Energy Issues for Scotland(June 2006)

The Royal Society of Edinburghs Energy for Scotland: A Call for Action(May 2007)

The Royal Society of Edinburghs submission to the Select Committee onScience and Technology Inquiry into Renewable Energy-Generation

Technologies (July 2007)

The Royal Society of Edinburghs submission to the Select Committee onEconomic Affairs Inquiry into The Economics of Renewable Energy (June

2008)

The Royal Society of Edinburghs submission to the Scottish Government Introduction of Banding to the Renewables Obligation (Scotland)

Preliminary Consultation (July 2008)


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Any enquiries about this submission and others should be addressed to the RSEsConsultations Officer, Mr William Hardie

(email: [email protected]).

Responses are published on the RSE website (www.royalsoced.org.uk).

August 2008


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The Royal Society of Edinburgh, Scotlands National Academy, is Scottish Charity No. SC000470 1

Follow-up to the RSE presentation to theScottish Parliaments Economy,

Energy and Tourism Committees Energy

Inquiry: Electricity Generation Statistics

2002-06

1. The RSEs Energy Group that presented to the Committee on 5th

March 2008 agreed that they

would provide the Committee with a time-series of energy delivered to the electricity grid inScotland, concentrating on the contribution of renewable sources. Professor Jim McDonaldFRSE and his group at the University of Strathclydes Institute for Energy and Environmenthave kindly undertaken this task. Their report follows below.

2. The readily available statistics cover the years 2002-2006. The 2007 figures are not yetavailable. The tables for each year show the contributions of the major generation technologiesand the contribution of individual technologies to total renewable generation.

3. Trends renewables. The reduction in nuclear generation from 38% of the total in 2005 to 26%in 2006 (fluctuation due to planned and unplanned outages at Scottish nuclear plants) wascompensated for by an increase in coal generation from 25% in 2005 to 33% in 2006, with aconcomitant increase in carbon emissions. Apart from these fluctuations, the overall pattern of

generation has shown little systematic change. The contribution from renewables remains smallnotwithstanding the growth of onshore wind generation.

4. The group strongly advocates that the Committee should recommend the creation of anindependent, authoritative audit body responsible for collecting and publishing reliable energystatistics. At the moment there are considerable uncertainties and gaps in the available datathat need to be resolved if public policy is to be well-informed and if progress towards agreedtargets is to be monitored and adjusted. It is important that we agree about the facts and thendebate what should be done, rather than arguing about the facts. The Royal Society ofEdinburgh would be happy to comment further on the establishment of such a body if required.

5. As climate policy is a key driver for energy policy, the RSE argued, in its response to theconsultation on the Scottish Climate Change Bill, for an independent, rigorous auditing of

greenhouse gas emissions. We suggest that the two audit functions, of energy and emissions,should be well-integrated, preferably by the same body. A copy of the Societys response to theconsultation on a Scottish Climate Change Bill, which addresses the energy/emissions issueand the auditing of emissions, can be found at:http://www.royalsoced.org.uk/govt_responses/2008_files.htm

Geoffrey BoultonGeneral Secretary1 May 2008


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Discussion Paper: Energy delivered to the Scottish electricity grid 2002-2006,

July 2008

2

Energy delivered to the Scottish electricity

grid - 2002-2006

Robert A. F. Currie, Iain D. Broadfoot, Graham W. Ault, James R. McDonald

Institute for Energy and Environment

University of Strathclyde

IntroductionThis paper presents statistics about the deployment and performance of Scottish-based grid-connected generation from 2002 to 2006. It is derived from publicly available data andinformation, much of which has come directly from Scottish Government Statistics

1, the Digest

of United Kingdom Energy Statistics2

(DUKES) and Renewables Obligation Annual Reports3

published by Ofgem. The Renewables Obligation Annual Reports are published for eachfinancial year, but the data refers to the calendar year beginning three months prior to thefinancial year.

Statistics are given for the installed capacity (MW) and electrical energy production (GWh) ofmajor power producers and renewable generators. It should be noted that the categories thatare accredited for the Renewables Obligation have changed between 2002 and 2006.Different sources also report different levels of installed renewable capacity over the period,mainly due to the different degrees to which connected, consented and under-constructionrenewable generators are recognised.

Reporting variations and the application of differing terminology means it is not possible todetermine how accurate the figures published by the Scottish Executive are for the

contribution of renewable generators to the total electrical energy generated in Scotland.

The statisticsThe paper presents publicly available statistics designed to present as accurate as currentlypossible the changes in the provision of energy to the grid in Scotland between 2002 and2006. (It should be noted that some values are rounded, which explains why total figures donot always match).The data suffers from the following drawbacks: The actual total operational capacity of each category of generation in each annual period

cannot be confirmed. DUKES provide data on the capacity of major power producers in Scotland but do not

provide a comprehensive breakdown of the generation capacity connected to thedistribution network. The category of Declared Net Capability (DNC) is used to presentthe connected capacity of major power producers in Scotland from 2002-2005 and

Transmission Entry Capacity (TEC) for 2006. The use of differing terminology is a sourceof uncertainty in the statistics. Further explanation of terminology can be found onNational Grids website

4.

Hydro-Electric power stations are the only renewable generator listed in the DUKESstatistics for installed capacity of major power producers.

The DUKES statistics presented for installed capacity of major power producers inScotland do not provide the installed capacity of renewable energy based generators.

It is to be expected that the renewable generation that does exist will be ROC accredited.ROC Annual Reports have been used to determine the installed capacity andperformance of Scottish-based renewable generation.

1http://www.scotland.gov.uk/Topics/Statistics/Browse/Environment/seso/sesoSubSearch/Q/SID/982

http://www.berr.gov.uk/energy/statistics/index.html3http://www.ofgem.gov.uk/Sustainability/Environmnt/RenewablObl/Pages/RenewablObl.aspx4http://www.nationalgrid.com/uk/sys_06/default.asp?action=mnch3_22.htm&Node=SYS&Snode=3_22&Exp=Y


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July 2008

3

Natural flow hydro electric generators are only ROC accredited if under 20MW capacity(Declared Net Capacity). Systems with greater capacity than 20MW are not thought to

need subsidy. Unless the operational capacity of each natural flow hydro station belowand above 20MW is known it will not be possible either to determine the % of electricitygenerated by Hydro or other renewable energy sources.

The correct method of defining the operational capacity of each category of generationmust be identified.

Arrangements for meeting peak demand in Scotland have not been determined.

The following section shows, for each year between 2002 and 2006, the installed capacityand the contribution to the grid from all sources, with a breakdown between differentrenewable sources. The paper then presents the outcome of submitted proposals for windfarms between 2004 and 2007.


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July 2008

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2002 Scottish Renewable Energy StatisticsTHE SCOTTISH ELECTRICITY GENERATION PORTFOLIOTable 1: Declared Net Capability of major power producers in Scotland, 2002

Generator Technology MW Capacity % of total MW connected

Conventional steam and combinedcycle gas turbine stations

5,069 53.55

Nuclear 2,440 25.78

Gas turbine and oil engines 83 0.877

Hydro Natural Flow 1,173 12.39

Hydro Pumped Storage 700 7.4

Source: http://www.berr.gov.uk/energy/statistics/source/electricity/page18527.html

Table 2: Electrical Energy Generated in Scotland by source, 2002

Generator Technology GWh Generated% of total GWh

Generated

Nuclear 15828 31.88

Coal 14833 29.87

Gas 11034 22.22

Oil 2210 4.45Hydro Pumped Storage 622 1.25

Hydro Natural Flow 4455 8.97

Other Renewables 672 1.35

Source: http://www.scotland.gov.uk/Topics/Statistics/Browse/Environment/seso/sesoSubSearch/Q/SID/98

THE CAPACITY INSTALLED AND PERFORMANCE OF RENEWABLE GENERATORS

Table 3: Installed Capacity and Performance of Scottish Renewable Energy sources, 2002

Generator Technology MW Capacity Installed GWh Generated% of total GWh

Generated

Biomass 12.5 33.27 3

Co-firing 14.16 44.75 4

Hydro


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July 2008

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5,070 53.37

Nuclear 2,440 25.68


Hydro Natural Flow 1,140 12





Generated

Nuclear 18934 37.16

Coal 14566 29.43

Gas 10025 20.25

Oil 2034 4.11








Generated

Biomass 12.67 13.91 1

Co-firing 14.16 74.794 4

Hydro


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July 2008

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5,119 53.57

Nuclear 2,440 25.54







Generated

Nuclear 18013 35.26

Coal 13080 25.60

Gas 11033 21.59

Oil 2274 4.45








Generated

Biomass 12.68 54 2

Co-firing 34.56 76 2

Hydro


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July 2008

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5,103 53.51

Nuclear 2,440 25.58







Generated

Nuclear 18681 37.93

Coal 12186 24.74

Gas 9371 19.03

Oil 1902 3.86








Generated

ACT 0.34 0 0

Biomass 12.98 49 1

Co-firing 157.88 158 4

Hydro


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July 2008

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2006 Scottish Renewable Energy StatisticsTHE SCOTTISH ELECTRICITY GENERATION PORTFOLIOTable 13: Transmission Entry Capacity of major power producers in Scotland, 2006



5,119 52.83

Nuclear 2,410 24.87







Generated

Nuclear 14141 26.38

Coal 17547 32.73

Gas 11634 21.70

Oil 2141 3.99








Generated

ACT 0.34 1.68 0.03Biomass 12.98 62 .49 1.19

Co-firing 76.2 117 2.23

Hydro


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July 2008

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Wind Energy in Scotland

Wind energy has been the fastest growing form of renewable generation to be connected tothe Scottish transmission and distribution infrastructure. The growth of Scottish-based windgeneration is shown below together with current statistics for wind farms in operation, inconstruction, consented and in planning.

Scottish Wind Energy StatisticsTHE GROWTH OF WIND ENERGY IN SCOTLAND FROM 2004-2007

Table 16: Annual totals for submitted, approved, refused and built wind farms (MW) in Scotland between 2004-2007

Submitted (MW) Approved (MW) Refused (MW) Built (MW)

On-shore Off-shore On-shore Off-shore On-shore Off-shore On-shore Off-shore

2004 2250.3 0 468.58 0 49.50 0 152.43 0

2005 1779.2 0 399.6 0 536.05 0 217.95 02006 1071.85 10 653.35 10 256.3 0 367.55 0

2007 567.77 0 620.15 0 512.1 0 226.95 10

Source: http://www.bwea.com/ukwed/index.asp

WIND ENERGY IN SCOTLAND 2008

Table 17: Wind Energy in Scotland, 2008

Status On-shore (MW) Off-shore (MW)

Operational 1,171.28 (54 farms) 10 (1 farm)In Construction 651.9 (13 farms) 180 (2 farms)

Consented 1,474.45 (48 farms) 0

In Planning 4,146.72 (90 farms) 0

Source: http://www.bwea.com/ukwed/index.asp


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July 2008

Statistical issuesA more comprehensive set of statistics are clearly required. Such a compilation should takethe following into account:

The operational capacity of each generation source in Scotland must be determined foreach annual period.

All statistics should be reported as transparently as possible and aggregated to addressconcerns regarding commercial sensitivity.

A more detailed statistical analysis of the data regarding renewable and non-renewableenergy sources is required.

The categories used to describe generator connections to transmission and distributionnetworks should be carefully reviewed to determine the actual capacity installed. Suchfigures should be compared to data published by the British Wind Energy Association and

other industry bodies. To determine the actual % of Scotlands generated electricity that comes from each

source (both renewable and non-renewable) will require the capacity of natural flow hydropower stations above and below 20MW to be known and the corresponding energyproduction of each group.

The national energy statistics should only include operational generators, additional datashould be supplied on planned, consented and in construction generators.

The actual performance of each generation source (both renewable and non-renewable)should be monitored to determine the annual capacity factor of each and the contributionto the electricity generated in Scotland.

Assumptions regarding capacity factor should not be used to provide the share ofelectricity generated from renewables. It is important that the true performance of a multi-source renewable portfolio is assed by technology and for the renewable sector as a

whole.

Economy, Energy and Tourism Committee Inquiry into Scotland’s Energy Future

Documents

Transcript of Economy, Energy and Tourism Committee Inquiry into Scotland’s Energy Future