

RENEWABLES OBLIGATION (SCOTLAND)
Consultation on Biomass Sustainability
Technical adjustments to sustainability
provisions for solid and gaseous biomass
under
the
Renewables
Obligation
(Scotland)
13th August – 5th November 2014
Introduction
1.
The Renewables Obligation (Scotland) legislation has helped to deliver large
increases in renewable electricity generating capacity across Scotland since its
introduction in 2002. The increase in capacity has been mirrored across the UK
thanks to the combination of the ROS with near identical RO mechanisms introduced
by the UK Government (covering England and Wales) and by the Department of
Enterprise, Trade and Investment in Northern Ireland to create a UK wide market for
Renewable Obligation Certificates (ROCs).
2.
The Scottish Government introduced sustainability provisions for solid
biomass and biogas into the Renewables Obligation (Scotland) (ROS) in 2011 1.
These required generators to report whether the biomass they had used had been
sourced from a type of ‘protected land’ and to provide details of the greenhouse gas
(GHG) emissions associated with its production and use. These measures were
enhanced in 20142 with the introduction of new criteria for sustainable forest
managements (the UK Timber Standard for Heat and Electricity, based on the UK
Timber Procurement Policy (UK-TPP), establishment of a GHG target trajectory and
the requirement for generators to produce independent audit / assessment reports.
The changes were brought in as a requirement to report against performance
starting in April 2014, with an intention to make the majority of the sustainability
provisions mandatory – and linked to ROCs – from 1 April 2015.
3.
Scottish Government policy supports the deployment of biomass in heat-only
or combined heat and power plants (CHP), particularly off gas-grid, and at a scale
which maximises heat use and local supply. Biomass is a key fuel, which has an
important part to play in meeting renewable energy and climate change targets, and
especially in the delivery of our 11% renewable heat target. In 2013, 90% of
renewable heat output in Scotland came from biomass installations which used
biomass primary combustions, or biomass combined heat and power. The Scottish
Government recognises the importance in ensuring that the biomass used for
electricity generation is sustainable and delivers genuine carbon savings.
Purpose of the consultation
4.
The UK Department of Energy and Climate Change published a consultation
paper on 16 June 20143 which sought views on five technical adjustments to the
reporting requirements and sustainability criteria for biomass.
5.
The Department of Energy and Climate Change published a Government
Response on 12 August 20144 which sets out the UK Government’s final policy
decisions. These decisions apply to the RO in relation to England and Wales, the
Renewable Heat Incentive in England, Wales and Scotland and to Contracts for
Difference in England, Wales and Scotland. This consultation seeks views on the
decisions as they relate to the Renewables Obligation in Scotland. This document
http://www.legislation.gov.uk/ssi/2011/225/contents/made
http://www.legislation.gov.uk/ssi/2014/94/contents/made
3 https://econsultation.decc.gov.uk/decc-policy/biomass-sustainability
4 https://www.gov.uk/government/consultations/biomass-sustainability
1
2
does not reproduce the final policy decisions contained within the UK Government
Response paper but are summarised as follows:
To revise the Saw Logs definition in the Renewables Obligation Order 2014
 Replace the definition of ‘saw logs’ in the Renewables Obligation Order 2014 with
a requirement for generators to report against the definition of saw logs which
matches the local specifications for saw logs in the place where the closest
sawmill operates and to reference details of the local specification used.
To reconsider the reporting requirements for tree species in the RO
 Replace the current requirement in the RO to report on specific ‘tree species’ with
a requirement for generators to report on the proportion of wood used which is
‘hardwood’ and the proportion which is ‘softwood’.
 Include an additional requirement for generators to report on whether any of the
wood used was likely to have come from protected or threatened species (and if
so, to name that species).
To provide exemptions from the Timber Standard for certain categories of
wood for the RHI and RO
 Arboricultural residues deemed to be sustainable under the Timber Standard for
the RO and RHI (and CfD)
 Diseased trees will not be exempt from the Timber Standard
 Material removed for ecological reasons where it originates from non-forest land
will be deemed to have come from a sustainable source under the Timber
Standard for the RO and RHI (and CfD)
 Windblow will not be exempt from the Timber Standard
 Saw mill residues will not be exempt from the Timber Standard
To include ‘highly biodiverse grasslands’ to the list of protected land types for
the RHI and the RO
 Add ‘highly biodiverse grasslands’ to the list of protected land types in the land
criteria for non-wood solid and gaseous biomass under the RO and RHI (and
CfD). This is subject to the adoption by the European Commission of a
regulation establishing the criteria and geographical ranges for the purposes of
bioliquids.
Averaging the Greenhouse Gas Emissions across the year in the RO
 Introduce a GHG annual averaging process in the RO and forthcoming CfD’s in
accordance with the methodology proposed in the consultation document i.e. the
issue of ROCs or payments under the CfD in respect of any biomass
consignment that exceeds the GHG target (but is below a maximum ceiling) will
be deferred until the end of the reporting year. At this point the annual average
GHG for all the consignments used will be calculated and outstanding payments
on any consignments that exceeded the GHG target will only be made if the
overall annual average is at or below the target.
Approach in Scotland
6.
The operation of the ROS is overseen by the Scottish Government. However,
our customary starting point is that the RO in Scotland should remain consistent with
its counterpart Orders across the UK. Our intention as a result of this consultation,
therefore is to introduce identical provisions and requirements as the rest of the UK –
unless compelling evidence or arguments are presented to the contrary.
7.
We would therefore like to hear and receive the views and consultees on the
decisions in relation to technical adjustments to the biomass sustainability provisions
as they relate to the Renewables Obligation Scotland.
Responding to this consultation paper
8.
We are inviting written responses to this consultation paper by 5th November
2014. Please send your response with the completed Respondent Information Form
(see "Handling your Response" below) to:
Fiona Hepplewhite
Energy Markets Team
4th Floor
5 Atlantic Quay
150 Broomielaw
GLASGOW
G2 8LU
Telephone: 0300 244 1076
Email: fiona.hepplewhite@scotland.gsi.gov.uk
9.
We would be happy to discuss these issues with stakeholders before they
formalise their responses.
10.
Please indicate clearly in your response the parts of the consultation paper
you are responding to. This will help us process and analyse the responses which
we receive.
11.
This consultation, and all other Scottish Government consultation exercises,
can be viewed online on the consultation web pages of the Scottish Government
website at http://www.scotland.gov.uk/consultations.
12.
The Scottish Government has an email alert system for consultations,
http://register.scotland.gov.uk. This system allows stakeholder individuals and
organisations to register and receive a weekly email containing details of all new
consultations (including web links). The system complements, but in no way
replaces SG distribution lists, and is designed to allow stakeholders to keep up to
date with all SG consultation activity, and therefore be alerted at the earliest
opportunity to those of most interest. We would encourage you to register.
Handling your response
13.
We need to know how you wish your response to be handled and, in
particular, whether you are happy for your response to be made public. Please
complete and return the Respondent Information Form which can be found at the
end of this document. This will ensure that we treat your response appropriately. If
you ask for your response not to be published we will regard it as confidential, and
we will treat it accordingly.
14.
All respondents should be aware that the Scottish Government are subject to
the provisions of the Freedom of Information (Scotland) Act 2002 and would
therefore have to consider any request made to it under the Act for information
relating to responses made to this consultation exercise.
Next steps in the process
15.
Where respondents have given permission for their response to be made
public, responses will be made available to the public in the Scottish Government
Library – after a check that they contain no defamatory material. You can make
arrangements to view responses by contacting the SG Library on 0131 244 4552.
Responses can be copied and sent to you, but a charge may be made for this
service.
What happens next ?
16.
Following the closing date, all responses will be analysed and considered
along with any other available evidence to help us reach a final position. In line with
the rest of the UK all agreed changes emerging from this process will be placed
before the Scottish Parliament as part of a Renewables Obligation (Scotland) Order
2015. Changes will take effect from April 2015.
State Aid position
17.
In accordance with State Aid rules, the current UK renewables obligation
scheme was notified to the European Commission in July 2000 for its approval. A
State Aid is defined under Article 87(1) of the EC Treaty as any public resource
given selectively to an undertaking that could potentially affect competition and intracommunity trade.
18.
The Commission considered that the redistribution of buy-out funds to
electricity suppliers, as under the Obligations at present, constituted State aid to
electricity producers and potentially also to electricity suppliers. However, as the
scheme met the criteria for green certificate schemes set out in the Commission's
environmental guidelines, it was approved (ref. N504/2000). A number of
amendments have since been made to the scheme, all of which have been notified
to and approved by the Commission. The proposals set out in this document plus
those changes consulted upon previously, and which will apply here and elsewhere
in the UK, will require the approval of the Commission.
Comments and complaints
19.
If you have any comments about how this consultation exercise has been
conducted, please send them using the contact details at paragraph 8.
Renewables Obligation (Scotland):
Consultation on Biomass Sustainability
RESPONDENT INFORMATION FORM
Please Note this form must be returned with your response to ensure that we handle
your response appropriately
1. Name/Organisation
Organisation Name
Title Mr
Ms
Mrs
Miss
Dr
Please tick as appropriate
Surname
Forename
2. Postal Address
Postcode
Phone
Email
3. Permissions - I am responding as…
/
Individual
Group/Organisation
Please tick as appropriate
(a)
Do you agree to your response being made
available to the public (in Scottish
Government library and/or on the Scottish
Government web site)?
Please tick as appropriate
(b)
Yes
(c)
The name and address of your organisation
will be made available to the public (in the
Scottish Government library and/or on the
Scottish Government web site).
No
Where confidentiality is not requested, we will
make your responses available to the public
on the following basis
Are you content for your response to be made
available?
Please tick ONE of the following boxes
Please tick as appropriate
Yes
No
Yes, make my response, name and
address all available
or
Yes, make my response available,
but not my name and address
or
Yes, make my response and name
available, but not my address
(d)
We will share your response internally with other Scottish Government policy teams who may be addressing the
issues you discuss. They may wish to contact you again in the future, but we require your permission to do so.
Are you content for Scottish Government to contact you again in relation to this consultation exercise?
Please tick as appropriate
Yes
No