26 September 2012 Rebecca Carr Renewables Routemap Team Directorate for Energy and Climate Change

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1 Renewable Energy in Scotland 26 September 2012 Rebecca Carr Renewables Routemap Team Directorate for Energy and Climate Change

2 Overview Policy context Microgeneration District Heating Financial support Key Actions Heat mapping Expert Commission on District Heating Where do we go from here?

3 Policy Context

4 Policy Context Climate Change Act 42% carbon emissions cuts by 2020 and at least 80% cuts by 2050, compared to 1990 Renewable Energy 100% of Scotland s electricity demand and 11% of heat demand from renewables by Fuel Poverty aim to ensure that by November 2016, so far as is reasonably practicable, people are not living in fuel poverty in Scotland

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6 Policy Context 2020 Routemap for Renewable Energy (2011) Electricity Generation Policy Statement

7 Policy Context 2020 Routemap Targets 100% electricity demand equivalent from renewables by % heat demand from renewables by 2020 New target of at least 30% overall energy demand from renewables by 2020 New target of 500 MW community and locallyowned renewable energy by 2020

8 11% of demand for heat to be met from renewable sources by : 1.4% 2011: 2.8% 2050 Climate Change Delivery Plan assumes heat supply largely decarbonised by 2050, with significant progress by 2030 Sustainable Development Commission Scotland district heating should be supported as part of any overall action on low carbon heat Microgeneration Strategy for Scotland

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

10 EU: Energy Efficiency Directive Targets Metering and billing A comprehensive assessment of the potential for cogen and district heating Where benefits exceed costs to take measures to develop cogen and district heating An assessment of the energy efficiency potentials of gas and electricity infrastructures

11 Financial Support

12 Financial Support Scottish Government financial support for renewable and low carbon heat through: Community and Renewable Energy Scheme District Heating Loan Scheme Home Renewables Loans Warm Homes Fund Renewable Energy Investment Fund

13 Financial Support UK Government Support Renewable Heat Incentive (RHI) Expected to be the main financial mechanism for supporting renewable heat Phase 1 opened in November initial focus on industrial and commercial sectors Renewable Heat Premium Payment (RHPP) 15 million one off grant scheme for domestic sector 3 million ring-fenced for social housing Green Deal

14 Financial Support RHI Consultations Proposals for a domestic scheme Closes 7 December 2012 Expanding the non-domestic scheme Closes 7 December 2012 Air to water heat pumps & energy from waste Closes 18 October 2012

15 Microgeneration Strategy

16 Microgeneration Strategy The overarching aim of the Strategy is to grow the market for microgeneration in Scotland Key themes Planning and regulation Technology Skills Communications Deployment

17 Microgeneration Strategy - Heat Scottish Government funded domestic renewable heat installations by technology

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19 Microgeneration Strategy Tomorrow s microgeneration technologies Energy Technology Partnership Scottish Institute for Solar Energy Research (SISER) Micro Fuel Cell Combined Heat and Power Burdens Energy, Intelligent Energy CHP, Logan Energy, and the Pure Energy Centre

20 Microgeneration Strategy - Actions Action 1: Microgeneration Task Group Action 2: Boost to Home Renewables Loans Scheme Action 6: Identify innovative ways of maximising existing grid capacity Action 13: Provide comprehensive and coordinated advice and awareness raising on financial mechanisms

21 District heating

22 Why district heating? Potential to save CO 2 compared to conventional heating systems. Potential to use a range of heat sources Cost effective way of reducing CO 2 from Scotland s heat supply. Financial benefits to occupiers of homes and businesses reducing costs leading to reduced fuel poverty. Need to plan now for the future

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27 District heating loan fund Low interest loans for both low carbon and renewable technologies in order to overcome a range of infrastructural issues and costs associated with developing these projects Housing associations eligible to apply Administered and delivered by Energy Saving Trust: Ken.Brady@est.org.uk

28 District heating loan scheme - Successful Projects Nine projects awarded over 1.9 million 280 homes Swimming pools Schools Care centre Multi storey flats 3 projects commissioned to date Additional funding allocated to continue the scheme An announcement will be made shortly with details of the next round of funding

29 Sustainable Heat Partnership Project District Heating Landscape

30 Sustainable heat partnership project with key partners (DECC, Ofgem and SEPA) to deliver an ambitious, but realistic, low carbon heat network exemplar project that will create a prospectus for step change in sustainable, low carbon heat in urban areas Phase 1 identifying fastrack innovation and demonstration projects in 2012/13

31 Key Actions

32 Key Actions Expert Commission on the Delivery of District Heating provide a forum for key expert stakeholders to work alongside government in order to remove barriers to deployment of district heating made up made up of academics, industry leaders, local authorities and environmental groups first meeting took place February co-chaired by Fergus Ewing MSP, Minister for Energy, Enterprise and Tourism recommendations to Government in the autumn 2012

33 Key Actions Heat Mapping Spatial matching of potential supply with demand Pilot in Highland Council, Fife and Perth & Kinross Councils Key tool to encourage local planning authorities to maximise opportunities for local heat use Publicly available social landlords can access and benefit too

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35 Where do we go from here?

36 Where do we go from here? Heat Hierarchy energy efficiency > district heating > microgeneration? Electric heating capacity? costs? practicalities? Microgeneration grid capacity? Role of district heating heat sources, including thermal generation? thermal storage? grid balancing?

37 Thank you.

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