Scottish Energy Advisory Board minutes: April 2024

Attendees and apologies

Co-Chairs

• Rt. Hon. Humza Yousaf MSP, First Minister (co-chair)
• Prof. Sir Jim McDonald, Principal Professor and Vice Chancellor, University of Strathclyde (co-chair)

Members in attendance

• Màiri McAllan MSP, Cabinet Secretary for Wellbeing Economy, Net Zero and Energy, the Scottish Government
• Gillian Martin, MSP, Minister for Energy and the Environment, the Scottish Government
• Melfort Campbell, Oil & Gas & Energy Transition SLG, IMES Group
• Lewis Shand-Smith, Chair, Energy Consumers Commission
• Brian McFarlane, Scottish Offshore Wind Energy Council and Head of Projects, SSE
• Keith Anderson, CEO, Scottish Power
• Mark Wild, CEO, SGN
• Rozanne Foyer, General Secretary, STUC
• Fintan Slye, Director, National Grid ESO
• Adrian Gillespie, CEO, Scottish Enterprise
• Keith MacLean, Director, Providence Policy
• Jim McCool, CEO Clyde Blowers,
• Dave Pearson, CEO, Star Refrigeration
• Gordon McGuinnes, Director, Skills Development Scotland
• Sam Ghibaldan, CEO, Consumer Scotland
• Finlay McCutcheon, Managing Director, SSE
• Jenny Stanning, Director, OEUK
• Paul Wheelhouse, Head of Energy Transition, SoSE

Scottish Government attendees

• Kersti Berge, Director for Energy and Climate Change
• Ragne Low, Deputy Director for Onshore Electricity
• Head of Energy Strategy and Markets Unit
• Head of Strategic Coordination Unit
• Community and Local Energy Team Leader
• SEAB Secretariat

Apologies

• Charles Hammond, Forth Ports
• Myrtle Dawes, Net Zero Technology Centre
• Ian Marchant, Dunelm Energy
• Andrew Jamieson, ORE Catapult
• Jane Morrison-Ross, South of Scotland Enterprise
• Professor Keith Bell, co-chair of the Energy Networks Strategic Leadership Group

Items and actions

Welcome and introductions

Sir Jim welcomed all attendees to the meeting, and highlighted that the attendance of the First Minister, Cabinet Secretary for Wellbeing Economy, Net Zero and Energy and the Minister for Energy and the Environment was a clear indication of the priority being given to the energy transition.

Sir Jim summarised the special meeting of the board to discuss the Energy Strategy and Just Transition Plan on 11 March 2024, and the initial meeting of the Energy Skills Strategic Leadership Group.

The First Minister then thanked attendees and noted how encouraged he was to see the group’s clear willingness to get things done.

The First Minister explained that this is why the Strategic Leadership Groups (SLGs), and their governance framework, are being redesigned, to give them a footing from which they could help to deliver the objectives of the Energy Strategy and Just Transition Plan (ESJTP).

Minutes and matters arising

Previous minutes from SEAB’s December 2023 meeting were approved by the group.

Delivery of the energy strategy and just transition plan

The First Minister discussed the process of developing the ESJTP, and highlighted that he has valued the insight, comments and feedback received from stakeholders. He emphasised that the focus of the plan will be on actions and outcomes.

Keith MacLean raised public buy in around the plan, highlighting the importance of the language in the ESJTP being clear. In particular, he noted that the phrase ‘Just Transition’ may not be familiar to everyone, and that it is important to help the public understand how they’re affected by the ESJTP.

Sam Ghibaldan added to this point, saying that a successful transition requires consumers to actively be a part of it. This must include considering how easy and attractive it is to consumers to change their behaviours. He noted that every barrier to this is a failure point at which a portion of those who would make changes in their daily lives are stopped from doing so.

Lewis Shand-Smith said that the Energy Consumers Network (ECN), for which he is chair, is ready and willing to do whatever it can to help. He said that the key priorities for the public are energy security and cheaper energy.

Jenny Stanning noted the importance of clarity of messaging coming from the Scottish Government, and that it must be alive to all areas within the energy sector, including Oil and Gas, that may not be completely receptive.

Rozanne Foyer requested further discussion with STUC, and that she would particularly appreciate more clarity on the critical path. She also suggested that monitoring and evaluation of projects could be undertaken by the workforce organised by the trade unions. 

Fintan Slye stated that a critical element must be a whole systems view of the energy sector. He felt that the plan in its current iteration underplays the potential positive economic impact, which could be made clearer.

Paul Wheelhouse told the board that it was essential to have a rural and island perspective, there are opportunities in Orkney and Shetland that are important to understand and describe better.

Dave Pearson raised the electrification of heat, which he said must be pushed forward at a faster rate. However, the cost of electricity must first be brought down, in order to make this attractive to the public. He added that if the policy is correct and can show a guaranteed constant flow of revenue, those looking for steady income from their investments will provide capital.

Finlay McCutcheon said that UK Government policy will have a large influence on what Scotland can do. He stated that REMA uncertainty could really constrain delivery and investment and that we need a clearer voice for Scotland’s interests.

Sir Jim asked that the delivery ecosystem of the ESJTP be an agenda point for the next SEAB meeting.

On the critical path, Mark Wild said that it is key that gas and electricity networks work together. On investment, he noted that various shareholders are actively seeking places in which to invest, for which they need knowledge of a pipeline of projects to guarantee continual return on their investment.

Melfort Campbell stated that the ESJTP is a clear opportunity to show SMEs that they can invest in energy projects, and to show the quality of employment that will be available.

Keith Anderson told the group that the plan is good, but that infrastructure is the most critical part and there is a need to accelerate the pace. He highlighted supply chains and that companies want the reassurance of an order book.

The First Minister agreed with the point that as a sector, all parties must seek public buy in to actions taken to decarbonise the energy industry, and that Scotland needs to show ambition coupled with showcasing Scotland as an easy place to invest.

SLG Survey Results

The Cabinet Secretary for Wellbeing Economy, Net Zero and Energy introduced this item, stating that the publication of the ESJTP provides a moment to review all of the mechanisms for delivery at our disposal. SEAB and the Strategic Leadership Groups are vital to our work as we implement the ESJTP. She recognised the impact the SLGs have had within their respective areas of the energy sector.

Brian McFarlane said that he supports the recommendations to reform the SLG structure, with a preference for the revised SLG’s to be technology/sector focussed with consistent cross cutting themes to ensure coordination. He pointed to the work SOWEC has done to make its objectives clear and attainable.  He also stated that when assessing the viability of technologies to support the delivery of the ESJTP, it would be beneficial to establish an independent economic advisory function.

Jenny Stanning was positive about the SLGs becoming delivery focused. She suggested that each SLG should own a section of the ESJTP to deliver and noted that the membership of the SLGs should be diverse.

Sir Jim agreed that he, and the SEAB Secretariat, would work between now and the next meeting of the board to crystalise the new structure.

Mark Wild said that skills and investment need further attention. To be effective, the SLGs should be attended by senior people – but in small numbers.

Melfort Campbell said that work needs to start as soon as possible and put forward the idea of having short-term single-issue groups to meet a need for more dynamic governance.

Lewis Shand-Smith pointed out that the SLGs can be great resources for information, for example Ofgem have been in touch with the Consumers Network for specific information.

Paul Wheelhouse contributed that from an Enterprise Agency perspective the SLGs are very valuable. He raised a concern that thematic based groups may result in a loss of representation within individual areas of the energy sector.

Mandating community benefits

Keith MacLean noted the complicated nature of mandating community benefits, including how variable definitions can be between communities, how to ensure benefits are being equitably distributed across the population and the importance of clarity on who is paying and who is benefiting.

Lewis Shand-Smith largely agreed, highlighting the difficulty in defining what is meant by community. He noted that the Royal Society of Edinburgh has been doing work on this.

Paul Wheelhouse welcomed progress on community benefits and the potential for mandating from transmission developments.

Keith Anderson agreed regarding the complicated nature of this subject. He advised that the Scottish Government avoid any assumptions when going into this area and to be clear on definitions.

Sam Ghibaldan said that there needs to be an overarching strategy that joins up an area that is currently piecemeal. 

The First Minister made closing remarks on this item, noting board members’ comments on what the purpose of community benefit is and on its challenges.

Summary of actions

The delivery ecosystem of the ESJTP will be an agenda item for the next SEAB.

Officials to meet with Rozanne Foyer regarding further union consultation on ESJTP.

Sir Jim McDonald and the SEAB Secretariat will work between now and the next board meeting to crystalise a new structure of the SLGs.