Climate Change Plan: monitoring report 2025

2. Chapter 1: Electricity

2.1 Part A - Overview of Sector

The outturn emission statistics for 2022 (published in 2024) show a position of 1.7 MtCO2e.

The CCPu sets out the following three policy outcomes for this sector, the indicators for which are summarised below:

The electricity system will be powered by a high penetration of renewables, aided by a range of flexible and responsive technologies.	On Track	Off Track	Too Early to Say
Electricity grid intensity (CO2e per kilowatt hour)	x	-	-
Installed capacity of renewable generation (Gigawatt (GW))	x	-	-
Renewable capacity at planning stages (GW: 3 categories)	x	-	-

Scotland’s energy supply is secure and flexible, with a system robust against fluctuations and interruptions to supply.	On Track	Off Track	Too Early to Say
Loss of Load Expectation (hours per year)	x	-	-

Scotland secures maximum economic benefit from the continued investment and growth in electricity generation capacity and support for the new and innovative technologies which will deliver our decarbonisation goals.

There are no existing indicators for this policy outcome. More information is provided in Part C.

Just Transition and Cross Economy Impacts

We wish to understand and report on the broader just transition and cross-economy impacts of our emissions reduction activities in addition to these sector specific policy outcomes and indicators. To do this, in this report we use data from the Office of National Statistics (ONS): Low Carbon Renewable Energy Economy (LCREE) publication. The LCREE data presented in this report is based on survey data of businesses which perform economic activities that deliver goods and services that are likely to help generate lower emissions of greenhouse gases, for example low carbon electricity, low emission vehicles and low carbon services. The LCREE indicator is narrowly defined and, while useful within its limited scope, does not give us the full picture of the impacts on workforce, employers and communities and progress towards a just transition. Over the next year, we will work to develop a more meaningful set of success outcomes and indicators aimed at tracking the impacts of our policies on a just transition to net zero, which will inform our next CCP.

Sector Commentary on Progress

Scotland has made significant progress decarbonising the electricity sector and maintained an electricity grid intensity of below 50 gCO2e/kWh for the years 2017- 2022. The overall downward trend from a carbon intensity of around 320 gCO2e/kWh in 2010 is primarily the result of the closure of two coal fired power stations in 2013 and 2016, as well as reduced reliance on gas for power generation.

Progress has also been made in relation to renewable electricity capacity in Scotland, which has risen over the last 12 months, from 15.4 GW at the end of 2023 to 17.6 GW at the end of 2024. This is largely due to increases in wind capacity.^[3] In Scotland during Q3 2024, 7.5 Terawatt hour (TWh) of renewable electricity was generated and in the first three quarters of 2024 Scotland has generated 26.6 TWh.^[4]

To move from a low to a zero-carbon electricity system, we must address the remaining sources of emissions arising from Scottish electricity generation, while maintaining security of supply and a resilient electricity system.

It is important to acknowledge the constraints that we are facing. Markets, policies, and regulations affecting the electricity sector are largely reserved to the UK Government. This means that achieving our targets is dependent on swift decisions and actions from the UK government, including on electricity market reform. We are working with the UK Government on a number of reforms, including the Electricity Act 1989 applications for consent process. The proposed changes will enable an accelerated process for considering and determining such applications in Scotland, while increasing statutory public participation in the development of proposals.

Noting that the legislative and regulatory levers required to deliver carbon capture and storage (CCS) are reserved to the UK Government, we will continue to work with the UK Government on options for accelerated decarbonisation of unabated combined-cycle gas turbine (CCGT) with the aim of reducing the use of unabated fossil fuels for electricity generation. Although we are not anticipating a funding announcement ahead of the UK Government Comprehensive Spending Review, a meaningful Track 2 update is needed urgently from the UK Government to maintain momentum and to provide investors with confidence. The Scottish Government will continue to work constructively with the UK Government to ensure the Acorn Project and Scottish Cluster secure the fastest possible deployment, so that a just transition for our energy workforce can be secured, while also delivering on net zero targets.

Developments in Monitoring Arrangements Since Last Report

N/A

2.2 Part B – Progress to Policy Outcome Indicators

Policy Outcome: Cross-sectoral social and economic.

Indicator: Full-time equivalent (FTE) employment in Low Carbon Renewable Energy Economy Indicator.

On-Track Assessment (Milestones/Targets): Year to year change.

Most Recent Data: 2022.

Data Source(s): Low Carbon and Renewable Energy Estimates, Office of National Statistics.

Assessment: Too early to say.

Commentary:

• In 2022, the Scottish low carbon renewable energy economy (LCREE) sectors were estimated to provide 25,700 FTE jobs.
• The estimates of LCREE are based on a relatively small sample of businesses and hence are subject to a wide confidence interval.
• Scottish LCREE employment in 2022 is lower than in 2021, but the difference is not statistically significant. Caution should be exercised when interpreting year on year changes due to a high degree of uncertainty in estimates.

Source: Office of National Statistics (ONS) Low Carbon and Renewable Energy Economy Estimates.

Policy Outcome: 1

Indicator: Electricity grid intensity (CO2e per kilowatt hour).

On-Track Assessment (Milestones/Targets): Maintain below 50g CO2e per kilowatt hour.

Most Recent Data: 2022.

Data Source(s): Department for Energy Security and Net Zero (DESNZ), Scottish Greenhouse Gas Statistics.

Assessment: On track.

Commentary:

• Scottish grid emissions are calculated by taking emissions from the electricity sector divided by total electricity generated.
• Scotland has maintained an electricity grid intensity of below 50 gCO2e/kWh since 2017.
• 2022 saw grid emissions remain similar to 2021 levels.
• The overall downward trend observed from a carbon intensity of around 320 gCO2e/kWh in 2010, is chiefly a result of the closures of Cockenzie and Longannet coal fired power stations in 2013 and 2016 respectively, as well as a reduced reliance on gas for power generation.
• With the closure of Hunterston B Nuclear power station in 2022, Scotland now has just one nuclear power plant left at Torness that is now due to close in 2030.
• Our expectation is that with an increased penetration of renewables, and no planned expansion of unabated fossil fuel power generation, Scottish grid intensity will remain consistently below 50 gCO2e/kWh in the future.

Policy Outcome: 1

Indicator: Installed capacity of renewable generation (GW).

On-Track Assessment (Milestones/Targets): Year-to-year change.

Most Recent Data: 2024 Q4.

Data Source(s): Department for Energy Security and Net Zero (DESNZ) Energy trends, DESNZ Renewable Energy Planning Database (REPD).

Assessment: On track.

Commentary:

• Scotland had 17.6 GW (17,593 MW) of installed renewable electricity generation capacity operational in 2024 Q4. This is an increase of 2,204 MW since 2023 Q4.
• The bulk of this capacity (10.3 GW) is onshore wind with the next largest capacity coming from offshore wind (4.3 GW).
• The capacity of other renewable technologies has also risen. Solar capacity has increased from 264 MW in 2015 to 698 MW in 2024 Q4.
• It is expected that renewables capacity will continue to increase in the 2020s and 2030s.

Policy Outcome: 1

Indicator: Renewable capacity at planning stages (GW: 3 categories)

On-Track Assessment (Milestones/Targets): Year to year change

Most Recent Data: 2024 Q4

Data Source(s): DESNZ Renewable Energy Planning Database (REPD)

Assessment: On Track

Commentary:

• As of December 2024, 669 renewable electricity generation projects with a potential generating capacity of 34.1 GW are in the pipeline: 3.0 GW of these are under construction, 9.0 GW are awaiting construction and applications have been submitted for 22.1 GW.
• Pipeline estimates do not include all of the potential 28GW of offshore wind that the ScotWind leasing round, or Innovation and Targeted Oil and Gas (INTOG), could add. This is due to projects not yet being included in the REPD, which is used for calculating pipeline capacity, as these projects are still subject to planning and consenting decisions.

Policy Outcome: 1

Indicator: Loss of Load Expectation (hours per year)

On-Track Assessment (Milestones/Targets): Maintain Great Britain (GB) standard below 3 hours per year

Most Recent Data: October 2024

Data Source(s): NESO: Winter Outlook Report^[5]

Assessment: On Track

Commentary: Loss of Load Expectation (LOLE) is a measure of security of supply for the GB electricity system. This is measured through the number of probability projected hours of a year in which demand could exceed supply, and which would require measures to be taken by the National Energy System Operator.

Their modelling indicates that the GB grid should remain within the GB standard of 3 hours LOLE per year.

2.3 Part C - Information on Implementation of Individual Policies

Outcome 1: The electricity system will be powered by a high penetration of renewables, aided by a range of flexible and responsive technologies

Policy: Support the development of a wide range of renewable technologies by addressing current and future challenges, including market and policy barriers.

Date announced: CCP 2018.

Progress on implementation since time of last report / CCPu:

• Onshore Wind: In December 2022, the Scottish Government published its Onshore Wind Policy Statement, setting an ambition of 20 GW of onshore wind by 2030. The Scottish Government continues to maintain its focus on tackling barriers to deployment – such as aircraft and seismological radar issues – working in partnership with the industry and other stakeholders through our Onshore Wind Strategic Leadership Group. Through this group, an Onshore Wind Sector Deal was developed and agreed with industry in 2023. The Sector Deal is a joint commitment between industry and the Scottish Government to enable the delivery of the 20 GW ambition, whilst ensuring maximum benefits to the people of Scotland. We are continuing to work with industry to deliver remaining Sector Deal commitments.
• Offshore Wind: The Scottish Government continues to maintain its focus on enabling the deployment of offshore wind, including by accelerating the delivery of the necessary infrastructure through targeted investment, and working with the UK Government to address reserved market and policy issues.

We are investing up to £500 million over five years to anchor our offshore wind supply chain in Scotland. This investment will support market certainty, and help create a highly productive, competitive offshore wind economy that supports thousands of new jobs, embeds innovation and boosts skills. We are delivering this strategy holistically across the Scottish public sector to achieve strategic alignment of public sector investment in offshore renewables supply chain and infrastructure development.

We also continue to work closely with the UK Government and others on reforms to the Contracts for Difference (CfD) scheme to ensure that maximum support, sufficient budget and more longer-term certainty is provided to enable the delivery of Scottish offshore wind projects at scale; and to seek greater clarity on timescales for reforms to the electricity market and connections queue process, as well as strengthened grid infrastructure, which are critical for supply chain and investor confidence in the Scottish pipeline.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these:

• Onshore wind: The Onshore Wind Sector Deal was signed with industry on 21 September 2023. The Sector Deal has set indicative dates for the various commitments within it. Scottish Government officials and industry representatives meet regularly to monitor the delivery of Sector Deal commitments. The Onshore Wind Strategic Leadership Group also meets a few times a year to track the delivery of the commitments in the deal.
• Offshore wind: Established Strategic forums gather frequently to monitor delivery progress.

Timeframe and expected next steps:

• Onshore Wind – Deliver remaining Sector Deal commitments set out in the Onshore Wind Sector Deal as soon as reasonably practical.
• Offshore Wind – The UK Government consultation on reforms for CfD Allocation ran from February 21 – March 21, with their response expected in summer 2025, with CfD reforms implemented for that allocation round.

Policy: Support improvements to electricity generation and network asset management, including network charging and access arrangements that encourage the deployment and viability of renewables projects in Scotland. Date announced: CCP 2018. Progress on implementation since time of last report / CCPu: We welcomed the UK Electricity Networks Commissioner’s report on how to accelerate the deployment of transmission infrastructure. We also welcomed the UK Government’s response, which was published as part of its Transmission Acceleration Action Plan (TAAP). The joint UK Government and Ofgem Connections Action Plan (CAP) offered reforms to the connections process, as well as changing from a ‘first come – first served’ approach to a ‘first ready – first served’ approach.

Further work in this area has been taken forward by NESO and was approved by Ofgem on 15 March 2025. Projects seeking connection are now required to align with the UK Government's Clean Power 2030 Action Plan (CP30) and subsequent NESO strategic plans such as the Strategic Spatial Energy Plan (SSEP) which set a locational technology capacity for what is required to meet CP30 and largely decarbonise the GB grid by 2050. The approach to connections is now ‘first ready, first needed, first connected.’

The UK Government established the Electricity Networks Delivery Forum, to oversee implementation of the TAAP and the CAP.

We are using this forum to ensure that the proposals are robust, fit for purpose and deliver for Scotland.

The UK Government agreed within the TAAP to work with us on a Review of Scottish Consenting, to modernise the underlying legislation that Scottish Ministers work to. A consultation detailing proposed reforms was published in October 2024, with responses received from a wide range, and large number, of organisations and individuals. These were then included in the Planning and Infrastructure Bill, which is currently making its way through parliamentary passage.

We also continue to press for urgent reforms to the transmission charging arrangements through Ofgem’s strategic review of transmission charging and its transmission charging task force.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: N/A Timeframe and expected next steps: We will continue to work with the UK Government, National Energy System Operator, Ofgem, network companies and wider stakeholders to implement the necessary reforms.

Policy: Publish a revised and updated Energy Strategy, reflecting our commitment to net zero and key decisions on the pathways to take us there. Date announced: March 2020. Progress on implementation since time of last report / CCPu: The draft Energy Strategy and Just Transition Plan was published for consultation in January 2023 setting out a draft route map of actions to deliver a flourishing net zero energy system. An independent analysis report on the consultation was published in September 2023. Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: The draft Energy Strategy and Just Transition Plan proposed a route map to 2045 with associated milestones and actions. It also set out draft just transition outcomes for the energy sector, noting that a full monitoring and evaluation framework would be informed by the Just Transition Monitoring and Evaluation Framework. Timeframe and expected next steps: The issues in the draft Energy Strategy and Just Transition Plan are informed and influenced by recent developments in the UK Government’s energy policy – including publication of the Clean Power 2030 Action Plan in December 2024 – as well as court decisions. This is a rapidly changing landscape, and we are taking time to reflect on those developments before drawing any conclusions and publishing any final strategy.

Policy: Develop and publish a Hydrogen Policy Statement by the end of 2020, followed by a Hydrogen Action Plan during 2021.

Date announced: 2020/21 PfG.

Progress on implementation since time of last report / CCPu: We published our Hydrogen Policy Statement in December 2020, which informed the publication of our Hydrogen Action Plan in December 2022. We published our Hydrogen Export Plan (Scotland a Trading Nation) in November 2024.

Have any implementation indicators / milestones been set for this policy? No formal milestones set, but an ambition was set to install 5 GW of renewable and low-carbon hydrogen production capacity in Scotland by 2030 and 25 GW by 2045.

If so, most recent data for progress against these: 5 MW of renewable hydrogen production is being commissioned this year with a further 20 MW of production capacity being installed by 2026. A pipeline of Scottish renewable hydrogen projects totalling 1.7 GW of capacity have applied for the second round of the UK Government’s hydrogen funding programme (capped at 875 MW). Shortlisting of projects by the UK Government for this round of funding was delayed in December 2024 and is now expected in Q1 2025. Progression of low carbon hydrogen production is aligned with UK Government funding of the Acorn project.

Timeframe and expected next steps: We continue to support the early development stages of Scotland’s hydrogen economy via our funding programmes. To date, we have invested a total of over £30 million – alongside the deployment of offshore/onshore wind which together form a compelling combination as part of our future net zero economy.

The opportunities and challenges of integrating high levels of renewables on the electricity grid in the period to 2030 will be most acute in Scotland and make a strong case for the synergies between offshore wind and green hydrogen production. Access to renewable electricity and the high cost of electricity is among the barriers to deployment in hydrogen production. The role of hydrogen in the Strategic Spatial Energy Plan and in Clean Power 2030 Action Plan continues to be developed.

Policy: A new renewable, all energy consumption target of 50% by 2030, covering electricity, heat, and transport.

Date announced: CCP 2018.

Progress on implementation since time of last report / CCPu: In 2022, Scotland consumed 149,434 GWh total final energy and generated 44,068 GWh energy from renewable sources. The energy that Scotland generates from renewable sources is equivalent to 29.5% of total final consumption. This is an increase from 23.4% in 2021.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: N/A

Timeframe and expected next steps: Ongoing.

Policy: Introduce a new framework of support for energy technology innovation, delivering a step change in emerging technologies funding to support the innovation and commercialisation of renewable energy generation, storage, and supply.

Date announced:CCPu.

Progress on implementation since time of last report / CCPu: While the Scottish Government has provided consistent support for the marine energy sector for more than a decade, the main levers for enabling the commercialisation of these emerging, pre-commercial technologies lie with the UK Government. We continue to engage with the UK Government regarding funding mechanisms to support the route to commercialisation.

The Scottish Government has supported our internationally recognised Wave Energy Scotland (WES) programme since 2014, investing over £50 million in the development of wave energy technology to date. The establishment and growth of a world leading marine renewables industry in Scotland, supported by WES, has resulted in Scotland being internationally recognised as a global frontrunner in the development of wave energy. Scotland is also a world leader in tidal stream energy, being home to the world’s first tidal stream array, the world’s largest tidal stream array and world’s largest tidal stream energy converter.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: N/A Timeframe and expected next steps: The Scottish Government will continue to support marine energy on its route to commercialisation.

Policy: Renewed focus on developing local energy projects and models, including through Community and Renewable Energy Scheme (CARES), supporting the achievement of 2 GW of renewable energy being in community and local ownership by 2030. Date announced: CCP 2018. Progress on implementation since time of last report / CCPu: Local and community energy projects continue to be supported through the Scottish Government’s CARES programme.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: An annual report on Community and Locally Owned Energy in Scotland monitors progress towards the Scottish Government’s ambition of 2 GW of community and locally owned energy by 2030. This report is produced by Energy Saving Trust on behalf of the Scottish Government through the CARES contract. At the end of December 2024, there was an estimated 1,109 MW of community and locally owned renewable energy capacity from 42,990 installations operational in Scotland. This is a progression of 55% towards the Scottish Government’s target of 2 GW of community and locally owned energy by 2030.

Timeframe and expected next steps: Following the conclusion of the previous contract, a new CARES contract, which will run until March 2029, launched in April. CARES will continue to support community energy, with up to £8m available through the Community Energy Generation Growth fund. This includes funding provided by GB Energy. The Scottish Government has also announced £1 million in funding for development support to help communities to develop early ideas for projects. This will increase the accessibility of community energy projects and will ensure communities continue to see the benefit of our energy transition. CARES will also continue to support community building decarbonisation, and shared ownership.

Policy: We will carry out detailed research, development, and analysis during 2021 to improve our understanding of the potential to deliver negative emissions from the electricity sector.

Date announced:CCPu.

Progress on implementation since time of last report / CCPu: Research has been undertaken to better understand the potential for negative emissions technologies in Scotland, including a Feasibility Study published in November 2023. See Negative Emissions Technologies (NETs) chapter for more detail.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: N/A

Timeframe and expected next steps: Ongoing – see NETs chapter.

Policy: We will continue to review our energy consenting processes, making further improvements and efficiencies where possible, and seeking to reduce determination timescales for complex electricity generation and network infrastructure applications. Date announced:CCPu. Progress on implementation since time of last report / CCPu: To address the substantial increase in demand relating to Electricity Act 1989 applications, the Energy Consent Unit in the Scottish Government has implemented a comprehensive workforce strategy. We have successfully recruited 40 new staff to the Energy Consents Team to build a diverse, skilled team.

We have designed and implemented a structured training and development programme to ensure our new staff understand the required quality standards. While this investment in training temporarily affects our immediate capacity, it represents a strategic decision to build robust, sustainable capability.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: Our strategic objective remains to process this increased volume of applications in alignment with both the Onshore Wind Sector Deal and the Transmission Networks Short Life Working Group recommendations.

External factors can often negatively influence determination timelines – such as the need for additional evidence from applicants, applicants wishing to alter applications, lack of third-party resource and the legal obligation to hold public inquiries in certain circumstances. We have implemented several measures to optimise the elements within our control:

• Developed a framework for 52-week determination of Priority Grid Applications,
• Revised guidance being prepared on Pre-Application requirements for Grid Applications,
• Adjusting submission requirements for Necessary Wayleave applications related to network development.

We also continue to collaborate with the UK Government on their Review of Scottish Consenting. The public consultation undertaken in late 2024 included several reforms designed to streamline timescales. Subject to the UK Government’s analysis of the responses, the consultation document set out an intention to legislate to implement reform as soon as parliamentary time allows.

Timeframe and expected next steps: We expect to see these benefits begin to materialise from summer 2025, as our new staff become fully operational.

Policy: We will deliver the actions from our Offshore Wind Policy Statement, published in 2020. These actions, ranging from support for supply chain, planning, innovation, and skills, will support the development of between 8 and 11 GW of offshore wind capacity by 2030. Date announced:CCPu. Progress on implementation since time of last report / CCPu: Our Offshore Wind Policy Statement (2020) set out the Scottish Government’s ambition for 8-11 GW of offshore wind in Scotland by 2030. This is currently being reviewed considering the significant ambition demonstrated by the private sector in the ScotWind and INTOG leasing rounds. Scotland has a current reported potential pipeline of over 40 GW of offshore wind projects, on top of the 3 GW which is currently operational, and an updated Offshore Wind Policy Statement is due to be published in 2025/26. This will be informed by an updated Sectoral Marine Plan for Offshore Wind Energy (SMP-OWE) which will deliver the planning framework for the ScotWind and INTOG leasing rounds, supporting deployment in Scottish waters whilst protecting marine users and our environment.

We are taking a “Team Scotland” approach, across the public sector, to seize opportunities which align with the Scottish Government's strategic supply chain priorities, as set out in our Offshore Wind Focus paper published alongside the Green Industrial Strategy in September 2024.

Recognising that collective action is required urgently to ensure that we have the right people, with the right skills, in the right place at the right time, the Scottish Government has convened a ‘Team Scotland’ Offshore Wind Skills short life working group, bringing together government, industry, and key delivery partners to develop a joint offshore wind skills action plan at pace.

We encourage developers to offer community benefit and shared ownership opportunities as standard on all renewable energy projects to deliver tangible outcomes for communities from developing our natural resources.

We have launched a public consultation on the review of our Good Practice Principles for community benefits from offshore renewables. The consultation closed on 11 April 2025.

We have upskilled and resourced the licensing and consenting team who process offshore wind farm applications to provide timely and robust determinations which balance minimising potential impacts to the marine environment and other sea users with the need to combat climate change. This will ensure the right offshore wind projects are taken forward and a long-term pipeline of work is available to the Scottish supply chain.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: We are almost tripling our capital funding in offshore wind to £150 million in 2025-26, part of our strategic investment of up to £500 million over five years, which is expected to leverage additional private investment of £1.5 billion in the infrastructure and manufacturing facilities critical to growing the sector.

Timeframe and expected next steps: We will publish an updated Offshore Wind Policy Statement in 2025-26, reflecting on the significant ambition demonstrated by the private sector in the ScotWind and INTOG leasing rounds and informed by an updated SMP-OWE.

The Scottish Government will continue work to leverage additional private investment in critical supply chain and infrastructure.

The ‘Team Scotland’ Offshore Wind Skills short-life working group has committed to developing and implementing a joint offshore wind skills action plan at pace.

Policy: Accelerate our work with aviation, energy, and other stakeholders to ensure that all radars are wind turbine tolerant/neutral during the coming decade. Date announced:CCPu. Progress on implementation since time of last report / CCPu: The finalised Onshore Wind Policy Statement was published in December 2022. The Onshore Wind Aviation Radar Delivery 2030 group (OnWARD 2030), led by RenewableUK and formed at the request of the Department for Energy Security and Net Zero (DESNZ), Aviation Management Board continues to meet regularly. The aim of this group is to create a more collaborative and strategic relationship between the aviation and renewables industries, delivering mutual benefit and allowing for strategic solutions to barriers to Onshore Wind deployment.

The Scottish Government has ensured ongoing official representation on the Air Defence and Offshore Wind Programme Board, within the Offshore Wind Industry Council (OWIC) Aviation and Radar workstream. This sustained engagement aims to address both defence and civil radar concerns and coordinate efforts to mitigate impacts effectively. The Onshore Wind Sector Deal has a number of commitments under the technical theme relating to aviation. These are being progressed by OnWard 2030 and the Scottish Government.

The Scottish Government also attends the UK Government Onshore Wind Industry Taskforce which has been established to identify and then deliver the actions needed to accelerate onshore wind deployment to 2030 and beyond.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: OnWARD 2030 meets regularly and is taking forward several of the aviation related Onshore Wind Sector Deal commitments. In addition, the Scottish Government is working with the UK Government Onshore Wind Industry Taskforce to progress Sector Deal commitments, particularly those which have reserved aspects.

Timeframe and expected next steps: Ongoing.

Policy: Review and publish an updated Electricity Generation Policy Statement ahead of the next CCP.

Date announced:CCPu.

Progress on implementation since time of last report / CCPu: The draft Energy Strategy and Just Transition Plan, published in January 2023, set out a strategic vision for the future of the electricity sector in Scotland and actions to deliver that.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: N/A

Timeframe and expected next steps: There have been recent developments in the UK Government’s energy policy, including publication of the Clean Power 2030 Action Plan in December 2024, and this is a rapidly changing landscape. We are taking time to reflect on those developments before drawing any conclusions and publishing any final strategy/statement.

Outcome 2: Scotland’s electricity supply is secure and flexible, with a system robust against fluctuations and interruptions to supply

Policy: Support the development of technologies which can deliver sustainable security of supply to the electricity sector in Scotland and ensure that Scottish generators and flexibility providers can access revenue streams to support investments.

Date announced:CCPu.

Progress on implementation since time of last report / CCPu: As we move towards a net zero energy system, we will need increasing levels of energy storage. The need for greater flexibility capacity in our energy system was set out clearly in National Energy System Operator (NESO) Clean Power 2030 advice to the UK Government. Pumped storage hydro (PHS) is a critical contributor to providing this flexibility in the power supply and wider energy security.

There is currently 0.74 GW of installed PHS operational in Scotland with a further 3 GW of PHS projects awaiting construction. Including the 3 projects awaiting construction, there is a pipeline of over 10 GW of PHS projects at various stages of development in Scotland.

On 10 October 2024, the UK Government confirmed its intention to create a cap and floor scheme to unlock investment in long duration electricity storage (LDES) projects, for which Ofgem will be the regulator, and published a call for input in December 2024. Based on the feedback and responses to the call for input, Ofgem and DESNZ published a joint Technical Decision Document (TDD) on the cap and floor scheme, on 11 March 2025. The TDD confirmed key details of the scheme and set out how it will operate, application window timelines, eligibility criteria, and the potential LDES capacity needed, among other technical details. The scheme opened for first applications on 8 April 2025. We will continue to engage with the UK Government, Ofgemand industry to ensure this mechanism maximises the generation and economic potential of all viable LDES technologies, including PHS, in Scotland.

Battery Energy Storage Systems (BESS), in the right locations, can also help to deliver reliable and secure power by storing electricity for use when it is needed most. Batteries play an important role in managing the variability and intermittency of renewable energy sources, balancing the grid, and improving security of supply.

There is already a strong pipeline of BESS projects in Scotland with an opportunity for delivering community and economic benefits. The UK Government’s Clean Power 2030 Action Plan indicated that around 5.8 GW of transmission grid scale battery storage will be required in Scotland by 2030 to meet its clean power targets.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: N/A

Timeframe and expected next steps: We will continue to engage with the UK Government, NESO, Ofgem and industry on the delivery of the cap and floor scheme.

Policy: Press the UK Government for market mechanisms and incentives which recognise locational value, both for energy and for security of supply, and which do not create undue barriers for investment in Scotland.

Date announced: CCP 2018.

Progress on implementation since time of last report / CCPu: In 2022, the UK Government began their Review of Electricity Market Arrangement (REMA), to explore what reforms should be made to the GB wholesale electricity market to ensure it supports the achievement of net zero, whilst ensuring security of supply and lowering costs for consumers. The Scottish Government has closely engaged with the UK Government on REMA, including providing a response to the 2024 consultation and continuing to press the UK Government for reforms that will help reduce electricity costs in Scotland, whilst protecting investment in renewables and other low-carbon technologies. The Scottish Government has been clear that investors need clarity on REMA prior to Allocation Round 7 (AR7) and that the UK Government must act quickly to demonstrate continued support for renewables development in Scotland to maintain investor confidence in the sector and ensure that existing renewables continue to deliver for our net zero aspirations.

UKG is also progressing work on the introduction of a Cap and Floor mechanism for long duration electricity storage (LDES), as well as changes to the capacity market.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: N/A

Timeframe and expected next steps: The UK Government is expected to announce a decision on the reforms to be progressed through REMA in summer 2025. On 8 April 2025, Ofgem announced the first application window for the cap and floor scheme was open. They aim to approve the first projects by Q2 2026.

Policy: Collaborate on actions to support investment in new pumped storage hydro capacity.

Date announced: CCP 2018.

Progress on implementation since time of last report / CCPu: We have been engaging with UK Government, Ofgem and key stakeholders on the delivery of a market support mechanism for pumped storage hydro. On 10 October 2024, the UK Government confirmed its intention to create a cap and floor scheme to unlock investment for Long Duration Electricity Storage (LDES) projects.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: On 8 April 2025, Ofgem announced the scheme was now open for first applications.

Timeframe and expected next steps: Ofgem aim to approve first projects by Q2 2026.

Policy: Work with all parties to secure maximum benefits from the move towards smarter and more flexible electricity systems and networks, as set out in the UK Smart Systems and Flexibility Plan (2017). Date announced: CCP 2018. Progress on implementation since time of last report / CCPu:

NESO are also developing a Regional Energy Strategic Plan (RESP) for Scotland which offers an opportunity to develop a bottom-up approach to understanding energy infrastructure needs and coordination between gas, heat, electricity and hydrogen – it will also play a role in defining an energy system ‘strategic plan’ for Scotland at a distribution level. At a national level, the output of the RESP will be very valuable, and the Scottish Government want to work with the RESP team in Scotland to further understand how we can align most effectively.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: no

Timeframe and expected next steps:

Policy: Encourage and support increased interconnection which can enhance Scottish system security while considering effects on domestic capacity and investment.

Date announced: CCP 2018.

Progress on implementation since time of last report / CCPu: The Scottish Government is working with stakeholders to ensure that reforms to, and expansion of, the electricity grid are robust and work for Scotland. While regulation of electricity networks is reserved to the UK government, we are engaging with the UK Government, Ofgem, NESO, and network companies to enable the timely delivery of critical energy infrastructure.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: N/A

Timeframe and expected next steps: The Scottish Government is exploring how best to support existing work to establish new interconnectors. Current operational interconnectors from GB grid are:

• 1GW to the Netherlands (BritNed)
• 4GW to France (IFA, IFA2 and ElecLink)
• 1GW to Belgium (Nemo Link)
• 500MW to Northern Ireland (Moyle)
• 500MW to the Republic of Ireland (East West)
• 1.4GW to Norway (North Sea Link)
• 1.4GW to Denmark (Viking Link)

Policy: Launch a call in 2021 for evidence and views on technologies that can transform our electricity system, including energy storage, smart grid technologies, and technologies to deliver sustainable security of supply. This will help ensure that our funding and interventions support world leading activity in Scottish based companies.

Date announced:CCPu.

Progress on implementation since time of last report / CCPu: Requirement for a call for evidence has been superseded by research commissioned into security of supply.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: N/A

Timeframe and expected next steps: The final security of supply report^[6] was published in December 2023.

Policy: Develop a series of whole system energy scenarios to guide infrastructure investment decisions for Scotland.

Date announced:CCPu.

Progress on implementation since time of last report / CCPu: Energy Systems Catapult produced a comprehensive set of Scotland-specific whole energy system scenarios providing options to reach the 2030 and 2045 energy system targets^[7].

The Scottish Government continues to engage with NESO and the UK government on future energy system planning and scenario modelling (such as NESO’s Strategic Spatial Energy Plan (SSEP), Regional Energy Strategic Plans (RESP) and Future Energy Scenarios).

The UK Government has an ambition to achieve clean power by 2030, and published its Clean Power 2030 Action Plan (CP30) in December 2024, incorporating advice it commissioned from NESO on the pathways to achieve clean power. The Scottish Government is working with the UK Government and NESO to ensure the delivery of the Action Plan fully considers our own renewables ambitions, and the need for clean power to bring clear benefits for communities and energy consumers.

On 20 October the UK, Scottish and Welsh governments jointly commissioned NESO^[8] to produce a Strategic Spatial Energy Plan (SSEP) for GB, to help accelerate the government’s clean energy superpower mission. The SSEP will assess the optimal locations, quantities and types of energy infrastructure required (from 2030-2050), to meet future energy demand with a clean, affordable, and secure supply.

Clean Power 2030 will form the baseline for the SSEP. The outputs of these plans will inform NESO’s reformed connections queue and the Centralised Strategic Network Plan (CSNP), which will take a broad, whole energy system view to transforming the pace and scale of our planning for the next 25 years.

NESO is also developing a Regional Energy Strategic Plan (RESP) for Scotland which offers an opportunity to develop a bottom-up approach to understanding energy infrastructure needs and coordination between gas, heat, electricity and hydrogen – it will also play a role in defining an energy system ‘strategic plan’ for Scotland at a distribution level. At a national level, the output of the RESP will be very valuable, and the Scottish Government want to work with the RESP team in Scotland to further understand how we can align most effectively.

Ofgem’s decision on connections reform, which was recommended in the joint UK Government and Ofgem Connections Action Plan (CAP), was published on 15 March 2025. Actions to reform the connections queue to align with CP30 and subsequent NESO strategic plans including the SSEP will be taken forward by NESO. The effect of these reforms will ensure that only projects which are ready and needed will secure a grid connection with technology capacities set for Scotland.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: N/A

Timeframe and expected next steps:

NESO will commence reordering of the connections queue in May 2025. Officials are engaging with Ofgem, NESO and the UK Government to ensure that Scottish projects which are required to meet our net zero ambitions are included in the reformed connections queue and that subsequent strategic plans, such as SSEP, take Scottish Government ambitions into account.

Ofgem published their decision on the RESP policy framework and set out that NESO should publish a transitional RESP in early 2026, with a final RESP due at the end of 2027.

The SSEP will be published by the end of 2026.

Policy: Ensure that sustainable security of electricity supply is included as a priority within future Scottish Government energy innovation funding programmes.

Date announced: CCPu.

Progress on implementation since time of last report / CCPu: The Scottish Government provided £550,000 of match funding through the Low Carbon Infrastructure Transition Programme^[9] to support demonstration of wind energy providing services including frequency response and black start, at the Dersalloch wind farm in Ayrshire. The programme launched in 2015. This is the first example in the world of a commercial wind farm demonstration black start, and it highlights opportunities to operate the electricity system in line with net zero ambitions.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: N/A

Timeframe and expected next steps: NESO is continuing to work with industry to apply lessons learned from Dersalloch.

Outcome 3: Scotland secures maximum economic benefit from the continued investment and growth in electricity generation capacity and support for the new and innovative technologies which will deliver our decarbonisation goals.

Policy: Press the UK Government to further reform and maintain the Contracts for Difference (CfD) mechanism in a manner which better captures the economic benefits and total value added for the Scottish and UK supply chains.

Date announced:CCPu.

Progress on implementation since time of last report / CCPu: Following the absence of any applications from offshore wind developers to the 2023 Allocation Round, the results of Allocation Round 6 were a step in the right direction and demonstrated the importance and capability of Scotland to deliver zero carbon power up to and beyond 2030. In Allocation Round 6, Scottish offshore wind projects secured contracts for a total of 740 MW of offshore wind, including 400 MW for floating offshore wind. All of the floating offshore wind (Pot 2) capacity was secured by Green Volt, the largest floating offshore wind project successful in CfD so far, demonstrating Scotland’s leadership in this sector. However, given the potential of Scotland’s offshore wind sector and its importance in delivering the UK’s Clean Power 2030 targets, we need to see an even greater number of projects and more renewables capacity delivered through Allocation Round 7 and future CfD rounds. The Scottish Government formally responded to the UKG consultation on reforms to AR7 on 20 March 2025.

We welcome the UK Government’s Clean Industry Bonus (CIB), which has been incorporated into the Contracts for Difference (CfD) scheme for Allocation Round 7.

The CIB provides extra revenue support to offshore wind developers who choose to invest in cleaner supply chains, and in supply chains in the UK’s most deprived areas, and we expect both Scottish offshore wind projects and the supply chain to benefit from this new initiative.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: CfD reform – as per section on “Support the development of a wide range of renewable technologies by addressing the current and future challenges, including market and policy barriers.”

The UKG have confirmed that the CIB will be introduced for offshore wind projects bidding into the Contracts for Difference scheme from Allocation Round 7 (2025), with a flexible budget of £27 million per gigawatt of capacity.

Timeframe and expected next steps: CfD reform – as per above section. The CIB application window opened on 13 February 2025 and closed on 14 April 2025.

Policy: Introduce new requirements for developers to include supply chain commitments when applying to the ScotWind leasing process run by Crown Estate Scotland. Date announced:CCPu. Progress on implementation since time of last report / CCPu: As part of the ScotWind bidding round, applicants were required to submit a Supply Chain Development Statement (SCDS) to Crown Estate Scotland, outlining the supply chain activity they commit to undertaking within Scotland, the UK and overseas. We welcome the commitment of developers to invest an average projection of £1.5 bn in Scotland per project across the 20 ScotWind offshore wind projects.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these: SCDS were updated within 12 months of developers signing their Option Agreements and must be updated at least once every 3 years thereafter throughout the development phase of the project, from Option Agreement to Lease. The first updates were all accepted by CES and resulted in an increased average projected spend per project, from £1.4bn to £1.5bn.

Timeframe and expected next steps: Ongoing.