Scotland's energy sector - unlocking investment: joint business plan

Focusses on the actions a number of stakeholders need to take in order to unlock investment in projects that support net zero, and will generate economic benefit across Scotland and the wider UK over the next few years.

Annex: Decarbonising Transport

Barriers and actions

Barrier #1: Network and Renewable Generation Investment Required to Enable Electrification of Transport

Stakeholders: Scottish Government; UK Government; Ofgem;

  • Addressing the barriers as set out in slide 8 and 13 covering decarbonisation of electricity is essential in order to ensure the infrastructure and renewable generation are available to support the electrification of transport, in particular:
    • Allowing investment, including anticipatory investment, in electricity networks.
    • Delivery of public charging points based on ensuring fair access for all.

Barrier #2: Need to Develop Support for the Effective Deployment of Green Hydrogen

Stakeholders: Scottish Government; UK Government;

  • Ensure appropriate deployment of funding to support the development of green hydrogen projects.
  • Ensure transparency about the GHG and CO2 implications of blue hydrogen projects.
  • Ensure Renewable Transport Fuel Obligation (RTFO) provides a stable long-term signal for investors.
  • Sector level targets similar to those for the phase out of new petrol and diesel vans and cars to stimulate take-up.


  • Creation of export manufacture/assembly opportunities for Scotland via deployment of green hydrogen in areas such as heavy duty vehicles.
  • Creates jobs and sends clear signals to Scottish supply chain.
  • Drives Electric Vehicle (EV) adoption in line with Scottish Government targets.
  • Delivers efficient and effective electrification of rail in line with Scottish Government aims.
  • Potential for sectors such as shipping to achieve zero carbon in a very short timeframe.
  • A DNO led public charging model, ensuring no areas are left behind reduces costs for consumers via Distribution Network Operators (DNO) delivery.
  • Stimulates innovation and deployment of low carbon solutions.
  • Hydrogen can provide a solution to decarbonise 'hard to decarbonise' areas such as heavy transport.

Example projects

  • Roll Out of DNO Led Public Charging (Scotland and GB) - First pilot project PACE is demonstrating the benefits of an alternative public EV charger delivery model with significant savings and replicable models. Scaling up PACE could deliver:
    • £26m connection savings in Scotland calculated on 10% of all publicly available chargers by 2050.
    • £310m connection savings across GB calculated on 10% of all publicly available chargers by 2050.
  • Green Hydrogen for Glasgow - ScottishPower's partnership offers an 'end to end' market solution for reducing vehicle emissions through the provision of green hydrogen. A proposed green hydrogen production facility will be operated using wind and solar power to operate a 10MW electrolyser. The project aims to supply green hydrogen within the next two years, to support fleets of heavy duty vehicles.



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