Publication - Strategy/plan

Securing a green recovery on a path to net zero: climate change plan 2018–2032 - update

This update to Scotland's 2018-2032 Climate Change Plan sets out the Scottish Government's pathway to our new and ambitious targets set by the Climate Change Act 2019. It is a key strategic document on our green recovery from COVID-19.

Securing a green recovery on a path to net zero: climate change plan 2018–2032 - update
Chapter 1 Electricity - 3.1. Electricity

Chapter 1 Electricity - 3.1. Electricity

Introduction

3.1.1 Scotland is widely recognised as a world leader in renewable energy. We have an abundance of renewable resources, and our targets and achievements reflect that. More than 83% of the electricity generated in Scotland during 2018 came from renewable or low carbon sources, nearly three times as much as was generated a decade earlier.

3.1.2 Over the same decade, the last two coal stations in Scotland (Cockenzie and Longannet) have closed, with the carbon intensity of Scottish electricity generation falling by close to 90% between 2000 to 2018.

Scotland’s renewable electricity generation has grown rapidly over the last twenty years. In 2019, a record year for renewable electricity generation in Scotland, over six times more electricity – 30.5 TWh – was generated from renewable sources compared to the year 2000. This is the equivalent of powering all households in Scotland for over three years.

Graph showing the GWh of electricity generated from renewable sources each year from 2000 to 2019, with breakdown of how it was generated.

There is currently around 12 GW of renewable generation capacity installed across the country, while the carbon intensity of electricity generated in Scotland has fallen to less than 50 g CO¬2 /kWh in both 2018 and 2019.

Graph showing average greenhouse gas emissions per kilowatt hour of electricity in the UK and Scotland from 2000 to 2018.

3.1.3 The decarbonisation of Scotland’s electricity sector has been driven by our rich natural resources, a supportive approach to planning, a drive to involve local communities in decisions that affect them, supportive market frameworks, and rapidly declining prices of renewable technology globally - with wind and solar now the lowest cost forms of new generation[32].

3.1.4 As Scotland transitions to net zero, a growing and increasingly decarbonised electricity sector is critical to enabling other parts of our economy to decarbonise – notably transport, buildings and industry.

3.1.5 We also want Scotland to continue to export large amounts of clean electricity to England, Northern Ireland, Wales and Europe, supporting carbon emissions reductions across the UK and beyond, and maintaining Scotland’s position of a net exporter of electricity.

3.1.6 Our climate change targets mean that we need to continue our progress, and move from a low to a zero carbon electricity system, with the potential for Negative Emission Technologies (NETs – see Chapter 8) to deliver negative emissions from our electricity sector, for example through the use of bioenergy for electricity generation combined with carbon capture and storage (BECCS).

3.1.7 In further decarbonising our electricity system, we also need to address the substantial challenges of maintaining security of supply and a resilient electricity system. Operating a zero carbon electricity system will mean finding new ways to provide a range of technical services and qualities currently provided by fossil fuel and nuclear generation. These include inertia, frequency response and voltage support services, which help keep the system stable. Pumped storage also has an important role to play, as it can release stored electricity when the demand is high and the system needs it most (e.g. when there is less wind energy available).

Dersalloch Black Start Trial[33]

While there has never been a total black-out across the whole country, and the chances of one happening are small, its impact would be substantial. “Black start” services across Britain still rely heavily on fossil fuel power stations, along with some hydro and pumped storage capacity.

The Scottish Government provided £550,000 to support a demonstration project delivered by Scottish Power Renewables at its Dersalloch Wind Farm looking at the potential for delivering black start from wind. The project delivered a global first during a test in October 2020 by delivering black start capability from wind power to re-start part of the electricity system.

The project used “virtual synchronous machines” (VSM) to regulate the frequency and voltage of the power from the wind turbines to keep the local electricity system stable and balanced, throughout the process of restoring the part of the system that had been blacked out.

This project shows that Scotland is developing expertise that will be critical to net zero both here and around the world. The Scottish Government will continue to support the development of technologies that can support sustainable security of supply, with renewable generation delivering technical services that currently depend on fossil fuel power stations.

3.1.8 Planning has been, and will remain, a critical enabler of rapid renewables deployment in Scotland. The position statement on our fourth National Planning Framework (NPF4), published in November, makes clear the Scottish Government’s intention to actively facilitate decarbonised electricity generation and distribution[34].

3.1.9 Key energy infrastructure, including electricity generation, large scale storage such as pumped storage hydro, development of the high voltage electricity transmission networks, and a CCS network capable of supporting BECCS are all being considered in the preparation of the fourth National Planning Framework.

3.1.10 However, two of the key levers needed to release Scotland’s further renewable energy potential – electricity policy and regulation – are reserved. This means that achieving our targets critically depends on the UK government taking the right decisions and actions and acting urgently.

New context

3.1.11 The electricity sector has continued to operate and ensure a safe, and secure supply of electricity throughout the COVID-19 pandemic.

3.1.12 Meanwhile, the need to invest in renewable generation, networks and related infrastructure to reduce greenhouse gas emissions is also critical to creating good, green jobs as part of our green recovery and longer term energy transition as discussed below.

Green recovery and just transition

3.1.13 A number of stakeholders and advisory bodies, including the Just Transition Commission, the Advisory Group on Economic Recovery, SSE, Scottish Power and Scottish Renewables, have emphasised the importance of renewable technologies in our green recovery. We agree that decarbonising our electricity generation and networks will provide a range of opportunities for existing and new Scottish companies.

3.1.14 In 2018, the low carbon electricity sector directly supported 7,800 full time equivalent jobs across Scotland, and contributed more than £3.6 billion to the Scottish economy. Recent analysis by National Grid estimated that 50,000 jobs in Scotland will be required in the Net Zero Energy Workforce[35].

3.1.15 The economic opportunities are huge and wide ranging. Our Offshore Wind Policy Statement[36], published in October 2020, sets out our assessment of Scotland’s offshore wind capacity to 2030 and, together with the Sectoral Marine Plan and ScotWind leasing rounds, provides the market with an understanding of the available Scottish potential.

3.1.16 Floating wind is an emerging technology, and, with the first large scale floating wind farm off the coast of Peterhead, and Scotland’s huge resource potential, there are significant opportunities here, for both development and innovation in installation and maintenance. The Carbon Trust’s Floating Wind Joint Industry Project, which the Scottish Government has helped fund, published a report[37] this summer which forecast that as much as 70 GW of floating wind could be installed by 2040.

3.1.17 Offshore wind has an important role to play in supporting the transition from oil and gas to low and zero carbon renewables. Scotland’s decades long experience across the oil and gas industry, and the offshore experience and innovation that this has developed, can be brought to bear in the development of offshore renewables and carbon capture and storage. It is also evident that many of the skills, expertise and technologies held within the oil and gas industry will be crucial in the development of net zero solutions at scale. The Scottish Government’s £62 million Energy Transition Fund, announced in summer 2020, will aid this process.

3.1.18 Approximately £1 billion is spent each year on maintaining and developing electricity networks, leading to substantial work for local supply chains. Both Scottish transmission networks (SSE and Scottish Power) included potential investments totalling around £2.5 billion in their recent business plan submissions to Ofgem – comprising a mixture of new and upgraded networks to help accommodate more renewable generation and investment to maintain the existing network.

3.1.19 SSE and Scottish Power, along with National Grid, have also announced plans in November 2020 to take forward a multi-billion subsea link between the east coasts of Scotland and north east England. The 4 GW project is designed to help connect Scotland’s huge offshore wind potential, with the companies forecasting that the project could support “hundreds of green jobs” during construction and operation.

3.1.20 Recent work from the University of Strathclyde highlights that investing in our electricity system to support the uptake of electric vehicles (EVs) can deliver sustained economic growth and new jobs into our economy[38]- for example, the report says that there could be up to 3,000 new jobs associated with 20% EV penetration by 2030.

3.1.21 We also aim to take full advantage of new and developing technologies. For example, hydrogen can play a major role in a net zero electricity system, directly complementing renewable generation, and providing new ways and opportunities to use, transport and store that energy. This isn’t just true for Scotland, but is likely to be part of the global solution to Climate Change. Scotland has the opportunity to be at the forefront of global change, developing and exporting expertise and support new skilled jobs.

3.1.22 The Scottish Government has a strong track record for supporting innovation in areas of key competitive advantage, such as wave and tidal power. Recent work by the Offshore Renewable Energy Catapult[39] suggests that the tidal stream industry could generate a net cumulative benefit to the UK of £1.4 billion and support 4,000 jobs by 2030 and wave energy could add a net positive contribution to the UK economy of £4 billion and support 8,100 jobs by 2040. However, both these technologies remain at an early stage of development, with the key levers required to commercialise the technology reserved to the UK Government.

3.1.23 We will continue to do all that we can to maximise the opportunities for Scottish businesses in our green recovery and longer term transition, supporting jobs, skills and enterprise, ensuring that the correct support is in place to strengthen Scotland’s renewable electricity supply chains, and supporting investment in the necessary infrastructure.

3.1.24 There is already substantial inward investment in energy infrastructure, including renewables, in Scotland. Our inward investment strategy, published in October this year, has renewable energy and decarbonised transport as two key priority areas and seeks to attract global companies to Scotland from across the UK and oversees.

3.1.25 We collaborate with the energy industry to ensure that we develop and use Scotland’s potential and expertise. The First Minister’s Scottish Energy Advisory Board (SEAB) and its Strategic Leadership Groups (SLGs) will help us to develop our understanding of the challenges and opportunities on skills and expertise in Scotland, identifying where and how we need to support our workforce in the transition towards net zero, including supporting delivery of the ongoing work of the Energy Skills Alliance.

3.1.26 The Scottish Government is working closely with the Energy Skills Alliance, a newly created and cross energy collaborative group whose focus is to develop an integrated skills strategy for a strong, net zero energy industry. The work streams include mapping future energy skills demand, taking a phased approach looking out to 2030, and ahead to the 2050 development of the My Energy Career Programme, delivery of an integrated energy apprenticeship scheme by 2022, and longer term development of a roadmap for aligning all energy training and standards. Skills Development Scotland is also progressing a Climate Emergency Skills Action Plan, published alongside this plan update, which will focus on the provision of green skills necessary for our journey to net zero.

3.1.27 In our 2017 Energy Strategy we were clear about the need for a smarter, local energy model, one that supports local solutions to meet local need, and links local generation and use. To support the development of local energy, we will publish a Local Energy Policy Statement that sets out key principles, that the Scottish Government wish to see adopted to ensure an inclusive energy transition - one that has people at its centre - supported by strong partnership working and collaboration at a local level.

3.1.28 We will also ensure that community-led renewables continue to grow as part of the transition, building on the success over recent years of our Community and Renewable Energy Scheme. (CARES).

3.1.29 The costs of moving to a fully decarbonised electricity system must be shared fairly and shouldn’t fall disproportionately to those who can least afford to meet them. The Scottish Government remains determined to protect vulnerable consumers, consistent with our commitment to ensure that those who are least able to make the transitions are not forced to pay higher costs. We are committed to eradicating fuel poverty, with our statutory and ambitious targets setting out that by 2040 no more than 5% of households are in fuel poverty and no more than 1% in extreme fuel poverty.

3.1.30 The independent Energy Consumers Commission has a role as SEAB’s consumers SLG, and will continue to advise on how the transition to a decarbonised system, and the costs and opportunities associated with this, can work for all consumers including those in vulnerable circumstances.

3.1.31 Many of the levers needed to ensure a fair distribution of costs and access to smarter energy systems are reserved to the UK. We will work with BEIS, Ofgem, consumer groups and industry to push for the changes that will be required for consumers in Scotland.

Our vision for 2032 and 2045

3.1.32 Renewable generation will increase substantially between now and 2032, and we expect to see the development of between 11 and 16 GW of capacity during this period, helping to decarbonise our transport and heating energy demand.

3.1.33 Our recent Offshore Wind Policy Statement[40] describes the potential for between 8 and 11 GW of offshore wind capacity to come forward by 2030. Our first Scot Wind leasing round in 2020/21 provides property rights for substantial new offshore wind capacity, with a second round to follow in 2023.

3.1.34 This renewables growth will lead to a more diverse and renewable electricity system, with a range of generating technologies and local / community energy developments combining with advances in flexibility and smart networks to ensure that consumers have access to reliable and affordable power.

3.1.35 Our current dependence on fossil fuel power stations to ensure system stability and security will change radically over the next decade. By 2030, innovation and trial projects will have demonstrated new ways to deliver sustainable security of supply, with updated market and regulatory mechanisms in place which value and reward these new services.

3.1.36 Renewable electricity will also combine with hydrogen to provide heat and power to households, businesses, large transport fleets and a range of industrial processes. The development of carbon capture and storage (CCS) and NETs will mean that the electricity system in 2032 could potentially deliver negative emissions, compensating for residual emissions elsewhere in the energy system.

3.1.37 Electricity demand will have grown considerably, with heat pumps and electric vehicles commonplace across Scotland. This means that electricity will play a much greater role across our wider energy system, economy and society than it did in 2020. The costs and benefits will be shared fairly across all members of society, with vulnerable groups and fuel poor households protected at every stage.

3.1.38 Scotland’s economy will benefit from the growth and manufacture of new renewable generation out to 2045, with a new, skilled and innovative workforce including many who have made a fair and just transition from other parts of today’s energy sector and industries.

3.1.39 Greater interconnection across the rest of the UK and to other parts of Europe will benefit our system and enable the export of renewable electricity across the continent. Consumers of all sizes will be able to support the network, with electric vehicles and other household devices rewarded for consuming and supplying power to the local grid when required.

Emissions Reduction Pathway to 2032
The target-consistent emissions-reduction pathway for the electricity sector to 2032

Route map to 2032

2021

We will ensure that both the technology and system challenges of the electricity sector are reflected in our new framework of support for energy research, development and innovation.

Energy Strategy Update published, outlining the role that we envisage the electricity system playing in our wider energy system, considering how it is increasingly used to decarbonise other sectors, including buildings, industry and transport.

First tranche of funding available from the £180 million Emerging Energy Technologies Fund. ScotWind applications evaluated and option agreements awarded to site developers.

The process of introducing new requirements for developers to include supply chain commitments when applying to the ScotWind leasing process run by Crown Estate Scotland is completed.

Draft National Planning Framework (NPF4) laid in Parliament during Autumn 2021. Full public consultation on the draft NPF4 will run alongside Parliament’s consideration, with NPF4 expected to be adopted in Spring/Summer 2022.

2022

An updated Electricity Generation Policy Statement (or “Clean Power Plan”) is reviewed and published ahead of the next Climate Change Plan.

2030

Offshore wind in Scotland has expanded to between 8 and 11 GW, building on the measures laid out in our Offshore Wind Policy Statement.

2017 commitment to ensure all renewable energy accounts for the equivalent of 50% of our energy demand across electricity, heat and transport is successfully delivered.

The actions we are taking

Supporting onshore wind

3.1.40 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. Faster determinations will enable any projects awarded consent to develop more quickly, which will benefit onshore wind in particular.

3.1.41 The interaction of wind turbines with aviation radar can sometimes present a barrier to development. We will continue to work with aviation, energy and other stakeholders, exploring best practice for collaboration through our Aviation 2030 Vision Taskforce, tackling the technical, regulatory and financial barriers which will ensure that all radars are wind turbine tolerant/neutral, and freeing up much more capacity for development.

Supporting offshore wind

3.1.42 We will deliver the actions from our Offshore Wind Policy Statement, published in October[41]. 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.

3.1.43 We will complete the first ScotWind leasing round, granting property rights for seabed in Scottish waters for new commercial scale offshore wind energy projects. We expect a second round to follow by 2023.

Clean Power Plan and security of supply

3.1.44 We will review and publish an updated Electricity Generation Policy Statement (or “Clean Power Plan”) by 2022. In line with the recent CCC recommendation to do so; this work will reflect an assessment of the contribution that renewable electricity generation is likely to have to make to achieving Scotland’s net zero target.

3.1.45 We will also continue our efforts to ensure a sustainable security of electricity supply, enabling renewable electricity to provide vital network services and including this component within future Scottish Government energy innovation funding programmes.

Infrastructure Improvements

3.1.46 We will work with our Enterprise Agencies to support the required infrastructure improvements to our ports and harbours to ensure that Scotland’s supply chain companies can benefit from the continued growth of renewable energy.

Support new Pumped Storage Hydro Capacity[42]

3.1.47 We will continue to fight hard for measures to unlock investment in Pumped Storage Hydro (PSH), following the recent Scottish Government consent for major projects at Coire Glas in the Highlands, and Glenmuckloch in Dumfries and Galloway in south west Scotland. We have asked the UK Government to bring forward mechanisms, potentially similar to those available for interconnectors, which will enable the substantial investment needed to develop PSH; we will work with the developers to ensure that this can deliver sustainable and secure jobs and supply chain benefits to Scotland’s rural areas.

3.1.48 The following policies will benefit all sectors, and are related to the whole system actions described in the Coordinated Approach chapter.

New technology funding

3.1.49 We will 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.

Case Study: Innovation support for renewable electricity

Scotland is a world leader in marine renewable energy innovation, as a result of consistent and committed funding and support from the Scottish Government. Initiatives such as the Saltire Tidal Energy Challenge Fund and our Wave Energy Scotland programme have supported projects at the cutting-edge of the marine energy sector, demonstrating key innovations while utilising the Scottish supply chain.

In 2019, Orbital Marine Power received £3.4 million of support through our Saltire Tidal Energy Challenge Fund to build and demonstrate the O2 2 MW tidal turbine, due to be launched in 2021 at the European Marine Energy Centre in Orkney. The 72-metre long device uses turbine rotors which can be turned 360 degrees so that power can be extracted from the tide as it moves in and out. This innovation significantly increases the potential renewable energy generation, with the O2 capable of powering more than 1,700 homes per year. Key parts of the device were fabricated in Fife and Orkney, using steel from Motherwell, and assembled in Dundee.

Carbon Capture and Negative Emissions Technologies

3.1.50 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[43].

Role of bioenergy in the electricity system

3.1.51 The Bioenergy Update will be published early next year to be followed by the development of a Bioenergy Action Plan[44]. This will consider the role of bioenergy for electricity generation (as well as others sectors) including its potential combination with CCS to deliver negative emissions from the electricity sector, ahead of the next climate change plan in 2024.

Developing Scotland’s Hydrogen Economy

3.1.52 We will support the development of hydrogen linked to the electricity system during the 2020s, building on the outputs of the Hydrogen Assessment Project and hydrogen policy development process[45]. This will identify and develop the opportunities for generating hydrogen from renewable electricity generation in ways that can support the integration of new wind, solar and marine capacity.

Our call to others

The UK Government

3.1.53 Electricity policy covering generation, transmission, distribution, supply and regulation is reserved. This means that achieving the electricity sector policy outcomes contained within this Plan update will depend to a large extent on policy decisions and actions from the UK Government.

3.1.54 We are already working with the UK Government to ensure that it understands the scale and context of our ambition for Scotland, as well as the importance of renewable electricity in Scotland for wider UK decarbonisation ambitions.

3.1.55 In order to help decarbonise the electricity sector at a pace consistent with the Scottish Government’s ambition and targets, we are calling on the UK Government to:

  • Radically reform the Contract for Difference (CfD) mechanism – this needs to go beyond the confirmed reintroduction of eligibility for onshore wind and solar. The UK Government’s recent response to its CfD consultation contains some welcome elements, notably the separation of offshore wind from floating and remote island wind, which we believe will make the latter technologies more competitive in future allocation rounds. However, we continue to press the UK Government to make targeted and effective support available for wave and tidal generation. We have also campaigned hard for changes to the CfD which strengthen the requirement to use Scottish and UK supply chains, with measures on this front now subject to further consultation. We believe there may also be a role for the CfD in supporting the production of green hydrogen from renewable energy sources.
  • Fully explore the options for hydrogen to play a role in direct power generation itself, potentially displacing natural gas as a provider of back–up or baseload power generation.
  • Support and enable the commercialisation of negative emissions technologies, CCS and hydrogen in the electricity sector as well as others – the electricity sector has substantial potential for these technologies, and support mechanisms such as CfDs have long been used to support developing technologies. The development of CCS urgently requires a stable policy environment comprising suitable incentives, regulatory environment, business model and financial frameworks. The use of electricity support mechanisms needs to combine with a wider framework to develop CCS that will enable negative emission technologies commissioning in the UK from the mid-2020s.
  • Ensure security of supply and operability – we have asked the UK Government to urgently address the matter of regional security of supply. For example, the GB-wide Capacity Market has no locational element and has failed to deliver investment in new dispatchable electricity generation in or near Scotland. Our decarbonised system will need enhanced black start provision, and to unlock investment in critical ancillary services. This is especially true of pumped storage hydro, where the plans and potential for huge new investments in Scotland will depend on the UK Government delivering a clear route to market.
  • Commit to carbon pricing – we are calling on the UK Government to commit to a UK ETS (as discussed in more detail in the Industry chapter) that, together with the reserved Carbon Price Support, provides a clear carbon price signal for investment in renewable generation.
  • Deliver better regulation – we, along with many others, have called on the UK Government to give Ofgem an explicit statutory objective to support the delivery of net zero. This will ensure that its regulatory mechanisms and decisions are fully consistent with binding targets such as Scotland’s 2045 net zero goal, and flexible enough to meet the national and local ambitions across Scotland, as well as in England and Wales.

Scottish public sector organisations

3.1.56 In our Vision for Scotland’s Gas and Electricity Networks, we committed to supporting local authorities and other organisations to engage more strategically on issues related to the electricity system. We are working in partnership with local authorities to develop Local Heat and Energy Efficiency Strategies (LHEES), aiming to have these in place across all local authorities by the end of 2023. LHEES will be an important enabler for local authority engagement with electricity network companies on future investment in Scotland’s net zero electricity infrastructure.

3.1.57 We will engage with partners on the new Net Zero Carbon Standard for new public buildings and we are accelerating efforts to use 100% renewable electricity on the Scottish public estate.

3.1.58 We are already seeing ambitious and encouraging leadership in the public sector, and we will support others to follow suit. Scottish Water has committed to become a zero carbon user of electricity by 2040, five years before the national net zero target, while Forestry and Land Scotland has installed over 1 GW of wind and hydro capacity across the land it manages.

Scottish businesses and industry

3.1.59 Scotland has a host of companies with impressive and innovative track records in renewables and network development, as well as in the growing market for flexibility services. We also have a financial sector, which includes the new Scottish National Investment Bank, in place and ready to work with the electricity sector to deliver new and inward investment across Scotland.

3.1.60 The challenges facing Scottish businesses and industry will vary according to an organisation’s size, electricity demand and ability to explore or invest in onsite generation or flexibility measures. Changes and investment in the electricity grid, including those which are influenced by regulatory decisions affecting the way in which charges are levied, have the potential to encourage Scotland’s industrial sites to switch towards low carbon and renewable electricity. This makes it all the more urgent that Ofgem’s decisions clearly reflect the need to support net zero.

3.1.61 In an electricity system with very high levels of renewable generation, businesses should have more incentives to be flexible. This means considering when they use electricity, for instance, looking for ways to reduce or increase their demand at certain times depending on renewable generation and wider demand across the network. Electricity networks are increasingly providing opportunities for large users who can vary their use at particular times and respond quickly to certain signals / circumstances. These provide opportunities to reduce costs and earn additional revenue, while helping maintain system security.

Individuals/households

3.1.62 The starting point for all of us, as individuals in our households, and across communities, should be to continue to invest in and follow energy efficiency measures and advice, and to reduce our electricity demand. Home Energy Scotland provides advice to all consumers on how to reduce their energy use and improve the energy efficiency of their homes.

3.1.63 Improved networks, renewable generation and smarter local energy systems can provide opportunities for a more flexible and resilient system, offering more attractive choices for consumers, for example, by programming EVs or smart household devices to respond to network and market signals about the need to use more or less energy. Individuals as well as businesses should be able to benefit from being flexible in this way.

3.1.64 We know that these opportunities won’t be available or easily accessible to everybody. The Scottish Government and others have a huge part to play in helping promote and increase accessibility amongst the widest possible range of consumers. This is especially true for consumers in vulnerable circumstances who are often more reliant than others on a safe and reliable electricity supply.

3.1.65 The Scottish Government is committed to eradicating fuel poverty, with our statutory and ambitious targets setting out that by 2040 no more than 5% of households are in fuel poverty and no more than 1% in extreme fuel poverty. A key driver of fuel poverty is the cost of energy; the way in which our electricity system develops, in particular how it is paid for, will be central to meeting these targets.

3.1.66 We will continue to work with the UK Government to urge it to reform levies so that they are fairer and that the burden does not fall disproportionately on those in or at risk of fuel poverty. Ofgem, electricity network companies and suppliers also have a crucial role to play in ensuring that changes can help lift households out of fuel poverty across Scotland.

International engagement

3.1.67 Scotland’s Energy Strategy identifies internationalisation as a key area, recognising the importance of working with international partners and the contribution that this can make to sustainable economic growth as we transition to a net zero economy. Scotland is renowned as a renewables pioneer, and we will continue to engage with international partners, strengthening existing relationships, maximising opportunities in new innovations and emerging technologies.

3.1.68 We will prioritise activity and collaborations that promote learning and policy exchange, build upon Scotland’s reputation and increase our attractiveness to international partners to ensure a flow of new investment.


Contact

Email: climate_change@gov.scot