[Scottish Policy]
[Legislative]
• Non Fossil Fuel Obligation (NFFO)
• Renewables Obligation Scotland
- Equivalent to SRO in Scotland
-Electricity Suppliers obligated to ensure 10% of
electricity supplied to be from renewable sources by
2010.
-Subsidies for renewable energy plants
-Funded by Fossil Fuel Levy and DTI
• Electricity Pool Established
-Electricity Market opened up.
-Creation of a trading system based around
electricity companies bidding to buy from
generators.
• Scottish Renewables Order (SRO)
-Scottish equivalent of NFFO, subsidised projects:
-SRO-1, 1994, 76 MW
-SRO-2, 1997, 112 MW
-SRO-3, 1999, 150 MW
•Scottish Parliament Established
- Responsibility for Energy Policy handed over to
Scottish parliament
-Cost to consumers limited using a price cap
-Successor of SRO (NFFO in England and Wales)
[Scottish Policy]
[Economic]
• Climate Change Levy, 2001
• Renewables Obligation
-Energy Tax on non domestic users of 0.43 p/kWh
-Suppliers who do not meet targets are forced to
pay buy out price set by the Government. Is
constant for all technologies.
-CHP exempt from levy, in line with the target of
10,000 MW capacity by 2010 for the entire UK.
-Renewables exempt, Issued with Levy Exemption
Certificates (LEC’s).
- LEC’s traded with electricity sold to suppliers who
claims CCL exemption on behalf of customers
supplied
-buy out is paid back to suppliers who meet
requirements, providing an incentive for compliance
with the obligation.
[Scottish Policy]
[Research and Development]
• DTI responsible for R+D
•Government Funding, 2001-2004
-£267 million to promote renewable technologies
Includes:
• Project Funding shared with
Industry
-e.g. Tidal Stream “Stingray” project, 2002,
Shetland Isles
-75% funded by DTI
-Capital Grants:
-£39 million for offshore wind
-Around £50 million from the New
Opportunities Fund (NOF) for offshore wind and
energy crops.
-Maximum grant is 40% of eligible cost
-Future Funding:
-Further £100 million to be made
available after the completion of the performance
and Innovation Unit’s report on renewable energy.
• Engineering and Physical
Sciences Research Council
(EPSRC)
-Funds students in sustainable engineering, £11
million worth of projects underway
• A new deal for Hydro, 2001
-Funded refurbishment of 30 stations
-Expected increase in generation of 10-20 MW
[Scottish Policy]
[Environmental Drivers]
• Kyoto Agreement, 1997
• Hydro Potential Realised
-UK required to reduce greenhouse gas emissions
by 12.5% in 2008-20012, compared to 1990 levels.
-Around 10% of current Scottish Generation
• Greenhouse Gas Emissions
-Government decide to suggest a domestic goal of
20% reduction by 2010, compared to 1990 levels.
-United Kingdom National Air Quality Strategy,
1997. Gives specific targets for a variety of
atmospheric pollutants.
• Oil Slicks of 1993, 1996
-Bad publicity for oil industry which already
suffered from the Piper Alpha disaster. Public aware
of potential problems with oil.
-Any future developments will be small scale
• Huge Renewable Potential
-Windiest country in Europe! High potential for on
and offshore supply.
-Wave power potential on West Coast