The future of energy in Scotland: consultation analysis

An independent analysis of the responses to the consultation on a Scottish Energy Strategy: The Future of Energy in Scotland.

Appendix 4: Chapter 5 - Delivering Smart, Local Energy Systems: Question 12: Priorities and Related Actions

Priority 1: Directly supporting the demonstration and growth of new innovative projects

Action 1: continue to support low carbon investors through a variety of existing Scottish Government grant and loan support schemes - including REIF - carefully assessing projects in order to maximise the wider system benefits of low carton investment

Key points in relation to Action 1 included:

  • The need for the Scottish Government to work with industry to maximise the benefits of available funding.
  • A process that will enable a full appraisal of energy projects, including the wider social, economic and environmental costs and their benefits.
  • Analysis of potential costs and cost effectiveness of projects.
  • The need for a national mechanism for financial support to offer access to projects.

Action 2: under CARES continue to support community and local renewable energy schemes

Key points raised about Action 2 included:

  • Where possible, CARES should be used to leverage additional funding from industry and wider public funding sources.
  • This should include projects using hydrogen and / or fuel cells and include low carbon transport.
  • A need for more support under CARES to achieve the ambitions set out in the Strategy.
  • A need to consider the effectiveness of REIF and / or why there has been limited take up of this.

Priority 2: Develop future energy systems in partnership between communities, the private and public sectors

Action 3: explore the potential to create a Government-owned energy company ( GOEC) to help the growth of local and community energy projects

Key points raised on Action 3 included:

  • A GOEC will help to deliver long term and co-ordinated solutions, acting as a central body with oversight of local energy projects.
  • There is a role for local authorities to play in the development and running of publicly-owned energy companies (a number of respondents provided examples of these, often citing Aberdeen Herat and Power Company as a successful model involving the local authority).
  • A GOEC could be based on the Danish Energy Agency model.
  • A GOEC can help bring together different groups of stakeholders and provide advice and support.
  • A small number of respondents disagreed with the creation of a GOEC, citing that it is not clear there is a market failure that needs a GOEC or that it will offer limited intervention with little benefits.

Action 4: explore the development of a regulatory framework for Local Heat and Energy Efficiency Strategies that will support area-based energy efficiency programmes, in conjunction with COSLA and local authorities

Key points raised in relation to Action 4 included:

  • The need for a balance between a consistent framework and meeting the requirements of local communities.
  • A need for a consistent technical framework for LHEES that includes the use of hydrogen and fuel cell technologies.
  • Would welcome an action plan for a spatial approach.
  • The need for a national roadmap and detailed delivery plan.
  • The need for local authorities to be provided with the necessary skills, support and resources needed to implement LHEES.


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