Wind energy in Scotland

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1 Wind energy in Scotland

2 Introduction Wind energy in Scotland Offshore renewables represent a huge opportunity for Scotland; an opportunity to build up new industries and to deliver on Scotland s ambitious renewable energy and carbon reduction targets for 2020 and beyond. (Source - Paul Wheelhouse MSP - Scotland s Minister for Business, Innovation and Energy Abundant Resources Scotland has 25% of Europe s wind crossing its surrounding 12,000km of coastline. This equates to an enormous 169GW of offshore wind potential or more than 10 times Scotland s own electricity requirements. Renewable energy There are currently around 5GW of offshore wind farm projects proposed for construction off the coast of Scotland, including three that will begin construction in 2017: Beatrice (588MW), EOWDC (92MW) and Hywind Scotland (30MW). Scotland has 5.5GW of operational onshore wind farms, with a further 3.9GW of onshore projects under construction or consented. 1 These huge resources will create billions of capital and export opportunities. Unrivalled Support Scotland has set itself some of the most challenging renewable generation targets in Europe, namely the equivalent of 100% of electricity demand from renewable sources by Renewables became Scotland s biggest generation source in 2013 and met 56.9% of the country s electricity demand in Over 200m of public funds have been made available in addition to UK CfD subsidies and EU Horizon 2020 funding, for projects that help to commercialise new technology, promote community ownership, create local employment and reduce CO2 levels, including Offshore Wind Expert Support, POWERS, REIF and RSA. There is a high level of public sector commitment for companies investing in Scotland. Outstanding Locations Scotland s main offshore wind generation sites are located near deepwater ports and facilities like Ardersier, Dundee, Leith and Nigg that all have expansive laydown areas and offer easy access to other offshore wind markets in Northern Europe. Seven strategically located sites are designated as Low Carbon / Renewables Enterprise Areas to stimulate manufacturing and job creation opportunities (Arnish, Dundee, Hatston, Leith, Lyness, Nigg & Scrabster) offering Business Rates relief, Capital Allowances and fast track planning for companies locating there. Offering an ideal base for manufacturers to serve Scottish, UK & European markets. Exceptional Experience Scotland has over 50 years of global offshore oil & gas experience, particularly in subsea engineering and operations & maintenance, hosting 2,000 supply chain companies, employing about 45% of the UK s Oil & Gas workforce. Our history of oil & gas exploration and recovery has created a skills base to develop energy projects in challenging environments and has also left a legacy of large deep-water platform / rig construction sites suitable for the offshore wind industry. There are lots of very qualified staff and a wide range of proven suppliers available. Unique Capabilities Scotland is not only home to Europe s largest energy research group across 12 universities (Energy Technology Partnership) but also world class offshore wind R&D, test and demonstration facilities. These include the Offshore Renewable Energy Catapult at ITREZ in Glasgow, offshore wind turbine testing at Hunterston and Levenmouth, the Power Networks Demonstration Centre in Cumbernauld and the new National HVDC Test Centre due to open in By accessing world class research & development facilities, utilising the skills of Scottish industry, and taking advantage of Scotland s extensive infrastructure assets, international companies can secure the best possible base to access UK and North Sea offshore wind resources as well as the wider European market. Scottish academia is geared up to offer industry faster innovation & cost reduction Department of Energy & Climate Change, Renewable Energy Planning Database August 2016

3 Contents Key facts 4 Energy targets 5 Onshore wind energy 5 Offshore wind energy 6 Supportive environment 8 Infrastructure 9 Academic support 11 Research and development 14 03

4 Key facts The Scottish Government aims to generate the equivalent of 100% of the nation s electricity demand from renewable sources by 2020 In 2015 renewable sources met the equivalent of 56.9% of Scotland s electricity demand Scotland s renewables & low carbon industry employs an estimated 21,000 people and will create many thousands more jobs, contributing billions of investment to the economy The Scottish Government has a world-leading target of 42% reduction in greenhouse gas emissions by 2020 and 80% reduction by 2050 Approximately 60% of the UK s onshore wind installed capacity is in Scotland 191MW of operational offshore wind farm projects in Scottish waters in 2016 The Scottish Government awarded planning consent for 4.1GW of offshore wind in 2014, enough generation capacity to power 2.5 million Scottish homes Three Scottish projects will begin offshore construction in 2017: Beatrice (588MW), EOWDC (92MW) and Hywind Scotland (30MW) A further 822MW of onshore wind projects are in planning or scoping, making a total project pipeline of around 5GW Scotland is home to the UK s only Doctoral Wind Energy Research Centre at the University of Strathclyde in Glasgow The country s 200,000 strong energy sector has created a strong component supply chain and skilled workforce with exceptional offshore expertise Deep-water ports and 7 Enterprise Areas provide manufacturing locations to offer maintenance and support services The seas around Scotland have 25% of Europe s offshore wind energy equating to 169GW of potential generation, over ten times Scotland s demand The recently completed 820m Beauly-Denny power line has significantly boosted Scotland s grid capacity, allowing new renewable energy sources to be brought to market 04

5 Energy targets Renewable energy targets for 2010, 2015 and 2020 The market for renewable energy is driven by the UK and Scottish Governments targets for the reduction of carbon emissions, linked to international agreements made within the Kyoto Protocols. The UK Government initially called for a 60% emission reduction by 2050, but has since followed the Scottish Government s lead to increase this target to 80% by In the shorter term, the Scottish Government has set higher targets than the rest of the UK. Scotland continues to lead the world in climate change legislation by introducing a more ambitious interim target of 42% by 2020 and the following table shows the comparison on renewable energy targets for electricity: Target year UK target level Scottish target level % 31% [2011] % 50% % 100% Onshore wind energy Scotland has approximately 60% of the UK s installed onshore wind energy capacity and this is expected to increase as we move towards the 2020 targets for renewable power. Scottish utility companies are major developers of wind power, with significant onshore projects under their belt and in the pipeline. Figures from the UK Government show that, as of August 2016, there are 236, 1MW+ operational onshore wind farms in Scotland with a combined capacity of 5.5GW. A further 42 projects are under construction and will add an additional 1.7GW of capacity once complete. ScottishPower s Whitelee project is the UK s largest onshore wind farm, producing 539MW from 215 turbines on Eaglesham Moor, near Glasgow, enough to power over 300,000 homes. ScottishPower s second largest onshore wind farm project, Kilgallioch, is currently under construction in Dumfries & Galloway. When complete, the 300m project will feature 96 Gamesa turbines with a combined generation capacity of 239MW. Meanwhile, SSE s Clyde wind farm, located between Biggar and Moffat, Lanarkshire, was officially opened by Scotland s former First Minister, Alex Salmond in September Clyde is one of the largest single consented wind farms in Europe. The 152 turbines have a total installed capacity of 350MW, capable of producing enough energy during a year to meet the needs of around 280,000 homes. Construction of a 54 turbine, 173MW extension to the Clyde wind farm is currently underway and due for completion in The development and construction of onshore wind farms in Scotland present excellent opportunities, both for companies involved in supplying components such as towers, blades, gearboxes and hubs, and those involved in operation and maintenance. Due to the scale of the onshore wind sector in Scotland, many of the overseas wind turbine manufacturers have set up sales, operations and maintenance facilities in Scotland, including Senvion, Siemens Wind and Nordex. 05

6 Offshore wind energy Scotland currently has three operational offshore wind farm projects the 174MW Robin Rigg wind farm located in the Solway Firth, the 10MW Beatrice Demonstrator located in the Moray Firth, and the 7MW Levenmouth Demonstration Turbine located in the Firth of Forth. The Beatrice Demonstrator was the first of its kind in the world and proved the concept of deepwater offshore wind by deploying two 5MW REpower turbines in a 45m water depth, 25km from shore. Scotland is also keen to further exploit the considerable offshore wind resource available in Scottish Territorial Waters. The Scottish Government, in conjunction with The Crown Estate, called for expressions of interest from developers in 2009 wishing to build offshore projects in waters up to the 12-mile limit. This resulted in five sites being awarded to companies and consortia, three of which have been progressed to an advanced stage of development, including the 588MW Beatrice wind farm, which will begin offshore construction in These sites are over and above the schemes outside the 12-mile limit coming forward under the UK s Round 3 offshore wind programme. In January 2010 The Crown Estate unveiled plans for 9 large offshore wind farm zones with a combined capacity of up to 32GW. This included two zones off the east coast of Scotland, one in the Moray Firth and one in the Firth of Forth. The zones will be developed in a number of phases with 2.2GW of projects awarded / at the consenting phase to date. The table below shows the sites and the developers for Round 3 and Scottish Territorial Waters. In 2017 construction will begin on two important demonstration projects - Vattenfall s 92MW European Offshore Wind Deployment Centre (EOWDC) and Statoil s 30MW Hywind Scotland floating offshore wind farm. Plus proposals for 2-B Energy s 12MW Forthwind project, Hexicon s Dounreay Plan ID Site name Company Size (MW) 01 Beatrice SSE, SDIC Power and CIP Inch Cape SDIC Power Neart na Gaoithe Mainstream Renewable Power Ltd Moray Firth EDPR 1, Seagreen A&B SSE and Fluor

7 Hatston Arnish Scrabster Beatrice Demo 10MW SSE Renewables & Talisman Energy Beatrice 588MW SSE Renewables, SDIC Power & CIP Moray Firth 1116MW EDPR Nigg Ardersier Inverness Aberdeen Hywind Scotland Demo 30MW Statoil Aberdeen Bay Demo (EOWDC) 92MW Vattenfall Inch Cape 784MW SDIC Power Dundee Seagreen A&B 1050MW SSE Renewables & Fluor Hunterston Stirling Glasgow Methil Edinburgh Neart na Gaoithe 448MW Mainstream Renewable Power Robin Rigg 174MW E.ON Tri floating offshore wind farm, and the Pilot / Atkins 50MW Kincardine floating offshore wind farm. The importance of Scotland s vibrant oil and gas industry in the development of the country s offshore wind energy sector cannot be overestimated. The knowledge and experience drawn from decades of oil and gas exploration has earned Scotland a key role in the development of deep-water offshore wind farm deployment and construction. Supply Chain Opportunities The success of the offshore wind industry requires the development of an efficient supply chain, and there are significant opportunities for investment in Scotland, including: Cables an increased manufacturing capacity is required, along with the ability to install, including AC and DC export cables, and inter-array cabling; Cable performance there is a need to reduced failure rates, given the increased complexity and cost of cable replacement; Electrical there is a need to reduce transmission losses, given the additional distance from shore, including enhancing cable connectors; Installation methods there is a need to increase installation rates given the greater difficulty of constructing in the heavier seas further offshore; Condition monitoring enhancements are required given the higher cost for dealing with maintenance issues further offshore; Vessels - more purpose built vessels are needed to match the offshore wind site challenges; and Foundations - the move to larger turbines means higher foundation loading which, in combination with deeper water, necessitates innovation in foundation design and installation. 07

8 Supportive environment Offshore renewables in Scotland are funded through a number of financial support mechanisms. The main market mechanisms for supporting renewable energy projects are Renewable Obligation Certificates (ROCs) and Contracts for Difference (CfDs) subsidies, which provide a supportive investment environment for renewable energy developers. In addition to the market support mechanisms, the Scottish Government, supported by its economic development agencies, Scottish Enterprise (SE) and Highlands and Islands Enterprise (HIE) provide a number of additional programmes to support innovation and the development of the offshore wind industry in Scotland. Other financial and innovation support in Scotland include: Prototyping for Offshore Wind Energy Renewables Scotland (POWERS) The POWERS fund is designed to support the manufacturing of next generation offshore wind turbines and major turbine components (including gearboxes, nacelles, blades, and towers) in Scotland. The Scottish Innovative Foundation Technologies Fund (SIFT) The Scottish Innovative Foundation Technologies Fund supports innovation in offshore wind turbine foundations, in water depths greater than 30 metres, to help drive down a major cost associated with the growth of the industry. SIFT can contribute grant funding towards capital and operational costs associated with research, development and demonstration activities in eligible projects for foundations running up to Low Carbon Infrastructure Transition Programme (LCITP) The Low Carbon Infrastructure Transition Programme (LCITP) provides tailored support for established and start-up infrastructure projects across the private, public and community sectors. It aims to stimulate commercial interest and investment and maximise Scotland s vast potential in the low carbon sector. The 76m programme offers three forms of support to low carbon projects: Catalyst support for start-up projects; Development support for more advanced projects; and Demonstrator support for projects already using commercially proven technology. Green Investment Bank The UK Green Investment Bank (GIB), headquartered in Edinburgh, is a key component of the progression towards a green economy. Capitalised with 3 billion, its mission is to provide financial solutions to accelerate private sector investment in the green economy. The GIB is playing a vital role in supporting the financing requirements of UK offshore wind, having invested 1.3bn in eight projects to date with a combined capacity of 2.9GW. Providing loans at favourable interest rates, offshore wind is one of the bank s priority investment areas and SDI can help connect interested businesses with this conveniently located institution. Scotland s offshore oil and gas sector, with over 2,000 companies, makes it an obvious partner choice for wind energy companies looking to tap into an expert resource to assist with the delivery of the UK s offshore wind programme. Scottish Enterprise s Offshore Wind Expert Support programme is helping Scottish companies explore opportunities and prepare for investing in offshore wind. Some early fruits of this work can be seen in the example from Burntisland Fabrications. Burntisland Fabrications (BiFab) Offshore wind energy support structures for deep water (Beatrice Project) BiFab s involvement in supplying the substructure jacket and transition pieces for the SSE / Talisman Beatrice Deepwater Offshore Wind Demonstrator in Scotland has led to it receiving a number of orders for this type of substructure from other offshore wind farm developers in both the UK and Germany. This includes a 100m contract to supply 26 wind turbine jacket substructures for the 588MW Beatrice offshore wind farm, which was awarded to the company in June The contract has cement BiFab s position as a key supplier to the new offshore wind industry and provides the company with a base load of work through to April BiFab has previously worked with the University of Strathclyde s Department of Design, Manufacture and Engineering Management (DMEM) to design mass manufacturing techniques for offshore wind jackets, helping to reduce the overall cost of the substructures and increase the competitiveness of the company s offering. 08

9 Infrastructure Beauly Denny Project In January 2010 the Scottish Government approved the project to upgrade the existing Beauly Denny power line. The go-ahead for the scheme, the most significant grid infrastructure project in a generation, has major significance for the renewables industry in Scotland. The 137-mile route from Beauly in Inverness-shire to Denny in Stirlingshire will have a key role to play in the future development of Scotland s renewable energy sector. The first section of the 820 million upgrade, from Beauly to Fort Augustus was switched on in July 2013 and the project became fully operational in Scottish Energy Ports The Scottish Energy Ports programme is a set of interlinked activities that support the use of Scottish port infrastructure by the energy sector. The newly developed Scottish Energy Ports Information Hub aims to make it easier for the energy industry to find out information about Scotland s port infrastructure, and provides a forum for energy companies and ports to make connections. Enterprise Areas In April 2011 the Scottish Government established 4 Enterprise Areas across 14 sites, 7 of which were designated for Low Carbon / Renewables economic development, namely: Hatston and Lyness Orkney, Arnish Western Isles, Nigg and Scrabster Highland, Dundee Port and Port of Leith Edinburgh. Incentives include business rate discounts worth up to 275,000 per business or enhanced capital allowances, skills and training support and an international marketing campaign to support the site. Levenmouth Demonstration Turbine The Offshore Renewable Energy Catapult s Levemouth Demonstration Turbine is the world s most advanced open access offshore wind turbine dedicated to research and product testing. Located just off the coast of Methil, Fife, the 7MW turbine offers industry and academia an unrivalled opportunity to undertake the testing, verification and validation of new technologies and concepts. The turbine also offers opportunities for the evaluation of environmental conditions, the testing of O&M procedures, the demonstration of remote inspection methods, and the training of personnel. Hunterston Test Centre for Offshore Wind Scottish and Southern Energy (SSE) and Scottish Enterprise (SE) have invested 20m to create an offshore wind turbine test centre capable of hosting three full scale wind turbines designed for offshore deployment. Siemens are currently testing their new 6MW direct drive turbine and Mitsubishi Heavy Industries are testing their 7MW, SeaAngel hydraulic drive turbine. The test centre is located at the port of Hunterston on the coast of North Ayrshire. Hunterston s wind resource, which replicates offshore conditions, coupled with its existing grid connection, make it an ideal site for the testing facility which has a key role in developing Scotland s offshore wind supply chain. The advantage of testing turbines on land is that it permits the manufacturer 24 hour access to make modifications and repairs, which is critical particularly for early series prototype turbines. Nigg Energy Park The former oil and gas fabrication yard at Nigg on the Cromarty Firth was successfully purchased by Global Energy Group (GEG) in October 2011, following which a 1.8m funding package from HIE was awarded to help transform the largely dormant site into a multi-use modern energy park. HIE invested a further 6.5m in Nigg in May 2014 as part of a 40.5m quayside development at the site. GEG has since signed a contract with Siemens securing the use of Nigg Energy Park during the construction of the Beatrice offshore wind farm project. Energetica - a world-leading energy destination Energetica is a 30 mile coastal area stretching from Aberdeen to Peterhead (a growth corridor) supported by business and transport infrastructure for growth. This includes initiatives for low carbon transport and communications such as the hydrogen highway and 1 GB information communications capacity. The Energetica programme is run as a partnership by three public sector stakeholders: Scottish Enterprise, Aberdeenshire Council and Aberdeen City Council. The overall aim is to make the region the location of choice for high-value oil & gas and renewable energy organisations, and a first choice for organisations of all sizes operating in other high value, quality, niche markets. 09

10 ITREZ - International Technology and Renewable Energy Zone Situated in the West of Scotland, centred on Glasgow, the International Technology and Renewable Energy Zone (ITREZ) is an alliance of the public, private and academic sectors that aims to stimulate co-location, investment and job creation by industry. To achieve this, ITREZ will provide the physical infrastructure and specialist expertise to support industrially-relevant research, knowledge exchange and skills provision in offshore renewables and associated enabling technologies. Companies locating within ITREZ benefit from easy access to world-class academic knowledge, a growing cluster of industry and supply chain partners and increased opportunities to engage in collaborative projects and the sharing of knowledge and best practice. Together with a supportive government and business environment, companies may be eligible for additional Scottish Enterprise support for job creation, innovation projects and staff development, delivered through relevant Scottish Enterprise schemes. Central to the success of ITREZ will be the University of Strathclyde s new Technology and Innovation Centre (TIC) which opened in inovo Scottish Enterprise s Industry Engagement Building (IEB) which opened in 2013, is already 85% occupied, most notably by the Offshore Renewable Catapult. inovo provides a range of office suites plus access to the TIC s laboratory, conference and meeting room facilities next door, to companies wishing to be based at the core of ITREZ, so that they can collaborate on key areas of industry driven research. 10

11 Academic support The close cooperation between Scotland s universities and companies has created a united community of innovation to rival the world s biggest The network has a combined investment value of over 250m across all key energy sectors and includes the European Marine Energy Centre in programme for a new Industrial Doctoral Training Centre aimed at supplying the wind industry with a new generation of specialists in wind energy. centres of academic excellence. Scotland s workforce has a very low turnover rate. Its skilled, stable and motivated workforce tends to be loyal and maintain a commitment to get the job done. Scottish Development International (SDI) backed by a Scottish Government determined to attract the best in academic and business excellence offers a huge range of free support and incentives to companies investing in the country s people and economy. Scotland s universities house a number of research and development centres and institutes tasked with providing support for the renewables sector and encouraging the growth of strong links with the business community. Scottish Energy Laboratory (SEL) The Scottish Energy Laboratory is a network of Scotland s leading test and demonstration facilities and provides a clear offering of Scotland s capabilities to national and international companies. Orkney, the Energy Technology Centre and the Myers Hills Wind Turbine Test site, both near Glasgow, and the European Offshore Wind Deployment Centre in Aberdeen. Energy Technology Partnership The Energy Technology Partnership (ETP) is an alliance of 12 strong, independent Scottish universities, currently engaged in world-class energy research, development and demonstration. With around 250 academics and 600 researchers, the ETP has a strong track record in the delivery of excellence and is the largest, most broad-based power and energy research partnership in Europe. The ETP is actively engaged in numerous UK and international partnerships and also has well developed links with industry and a wide range of ongoing collaborations. Wind Energy Systems Research Centre The University of Strathclyde has been successful in securing a major funding Over the next five years, the Centre will produce 50 PhD-level engineers and scientists, bringing together pioneering research and advanced skills training to help the UK meet its ambitious renewable energy targets, as well as addressing the skills shortage in the sector. In the wind energy arena, a number of companies some of which were spinouts from Scottish universities have already produced advanced products and services, and others are involved in the further commercialisation of research projects to add to the body of work coming out of Scotland. University of Edinburgh The University of Edinburgh s Institute for Energy Systems conducts world class research into the systems that control the conversion, transmissionand utilisation of many forms of energy. Led by Professor Robin Wallace, the IES has 13 academic staff, 11 research staff and over 30 postgraduate students. 11

12 Power Networks Demonstration Centre (PNDC) The Power Networks Demonstation Centre in Cumbernauld opened in 2013 as a joint venture between the University of Strathclyde, Scottish Enterprise, the Scottish Funding Council, ScottishPower and SSE aimed at accelerating the adoption of novel research and technologies into the electrical industry. The University of the Highlands and Islands (UHI) The University of the Highlands and Islands is committed to building energy-related research and development capacity within the Highlands and Islands and coordinates energy-related activities across its 13 partner colleges and research institutions. Research activity ranges from marine environmental monitoring to hydrogen fuel cell technologies to marine bio-energy. The Offshore Renewables Institute The Offshore Renewables Institute is research partnership between the University of Dundee, the University of Aberdeen, and Robert Gordon University focused on developing and delivering solutions to the offshore wind industry. The institute offers an interdisciplinary and integrated approach, bringing together experts, researchers, and knowledge from different disciplines to confront challenges faced by the industry. The Energy Skills Partnership (ESP) The Energy Skills Partnership (ESP) is a collaboration of colleges aiming to increase Scotland s capacity to deliver skills and for the energy sector. Through this consortium approach, Scotland s colleges will ensure the right skills are being delivered and raise industry awareness to ensure Scotland has the workforce, skills and competence required by the energy sector in the future

13 Demonstration projects in Scottish waters CGI of Vattenfall s EOWDC CGI of Statoil s Hywind Scotland floating offshore wind farm 13

14 Research and development Artemis Intelligent Power hydraulic transmission systems Spun out of renewable energy and fluid power research at the University of Edinburgh in 1994, and acquired by Mitsubishi Heavy Industries (MHI) in November 2010, Artemis has a multidisciplinary team of engineers and technicians who have worked to develop the company s Digital Displacement technology for use across several different industries. Since the beginning of 2013, the first Digital Displacement transmission to be installed in a wind turbine has been operating in a retrofitted 2.4MW wind turbine at Mitsubishi s in-house test site in Yokohama. Verification testing of a large-scale 7MW digital hydraulically driven offshore wind turbine began in February 2015 at the Hunterston Test Centre for offshore wind turbines. The testing at Hunterston is a world s first for a large-scale wind turbine with a hydraulic drive train controlled by Digital Displacement technology. Subject to successful verification testing, MHI intends to supply the new hydraulic drive train to the MHI Vestas offshore wind joint venture company. Artemis Intelligent Power s 1.75-metre diameter pump, designed to connect directly to a windturbine rotor. Offshore Renewable Energy Catapult Glasgow and ITREZ are now home to the UK s new 50m Offshore Renewable Energy Catapult, which has been tasked with lowering the overall cost of offshore renewables through innovation and the development of new technologies. It will achieve this not only by transferring knowledge from the established engineering industries into areas such as foundation, installation, connection, operations and maintenance but also by working with researchers and SMEs to evaluate and develop novel subsystems and components. As such it will build on Scottish and UK strengths to take advantage of inward investment opportunities and establish a strong supply chain for the emerging marine energy sector. The Catapult partners also include the Carbon Trust and the National Renewable Energy Centre (NaREC). Grid Integration and Electrical Systems University of Strathclyde Smart Grid To overcome difficulties in connecting renewable generation at distribution level, which is the system available in many of Scotland s remote areas and islands, the University of Strathclyde worked with the two Scottish Distribution Network Operators (DNOs) SSE Power Distribution and ScottishPower Energy Networks to come up with a new approach. To support the increased grid capacity required by the European Marine Energy Centre, and for a modest investment of 320,000, SSE Power Distribution was able to set up the Orkney Active Distribution Network Management system. This system has added a further 15MW to the available capacity on Orkney without having to involve major upgrades to the infrastructure which would have run to millions of pounds. The University is now involved in assisting SSE set up further Registered Power Zones (RPZs) on the Western Isles and in the Argyll region

15 Smarter Grid Solutions grid management Smarter Grid Solutions is a spin-out from the University of Strathclyde and has evolved from the development work carried out to come up with the Orkney Active Distribution Network Management system. The system involves the use of computer software to actively manage an electricity network so that it operates more efficiently and reliably. By maximising the capacity of existing grid infrastructure, costly upgrades can be avoided in the initial stages of adding further wind or other renewables projects onto the system. Funding and support The Scottish Government is committed to attracting, nurturing and supporting innovative businesses across the renewable energy sector. With this in mind, it has created an easily accessible framework to encourage inward investment in Scotland. A key part of this welcoming structure is Scottish Development International (SDI), which helps investors tap into Scotland s world-class capabilities in innovation and commerce. Uniquely, SDI provides access to Account Managers who open doors to a huge range of opportunities in funding, new technology, R&D and training. Potential investors receive free business and strategic advice and are supported in making crucial business contacts across Scotland. The National HVDC Centre The National HVDC Centre is being created to test the operation of HVDC schemes on the UK transmission network. Co-located with the PNDC and currently under construction in Cumbernauld, the National HVDC Centre will become an invaluable tool for system planners, asset owners and operators when it opens in The facility will create a number of unique features which will allow the study of the impact of HVDC schemes to a level of detail not possible for individual manufacturers. Regional Selective Assistance Regional Selective Assistance (RSA) grants offer funding towards investment which will create or safeguard jobs. While this grant is available to SME companies across Scotland, grants to large companies are confined to certain EU designated areas. R&D Funding R&D funding can provide up to a quarter of the cost of research and developments in Scotland. This valuable financial support can cover the costs of everything from buildings and people to technology and equipment along with any associated costs. Scottish Venture and Co-investment Funds The Scottish Ventures Fund invests in companies from start ups, early-stage to expanding businesses seeking funding to develop products and/or markets. It can can provide between 10,000 and 2 million as part of deals ranging from 20,000 to 10 million. The Scottish Coinvestment Fund is designed to address finance gaps and invests alongside accredited co-investment partners. It can provided between 10,000 and 1.5 million on deals deals ranging from 20,000 to 10 million. Both funds are primarily equity-based, taking a share in the companies they support and maintaining an ongoing interest in their success. R&D Tax Credits As part of the UK Government s strategy to support innovation and inward investment, it offers generous incentives to companies carrying out research and development in the UK. Some 9.5 billion worth of support has already been claimed through this scheme, which is open to large companies and SMEs. Find out more about the wide range of funding and support available in Scotland at: 15

16 If you need more information, please get in touch. Visit our website or talk to us in person by calling +44(0) SE/4277/Sep16

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