SR Annual Review 2013-14 by Scottish Renewables

ANNUAL REVIEW 2013-14 IN FOCUS

FOREWORD

The last 12 months have been unforgettable for Scotland, and extremely significant for the country’s renewable energy industry. Before and after the referendum on independence, throughout the conclusion of key aspects of Electricity Market Reform and during the ongoing media debate about sourcing our energy, Scottish Renewables has remained resolutely focused on our five strategic priorities:

In 2014-15, we will remain focused on our five priority areas by:

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Leading the debate on devolution and energy policy

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Promoting and defending the industry at every opportunity

Securing the optimal legislative, regulatory and fiscal framework for the growth of renewables

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Pushing for the best possible outcome for the sector from the next stages of EMR

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Communicating the benefits of renewable energy – today and tomorrow

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Setting out clear priorities for the next UK Government ahead of the General Election in May 2015

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Leading the debate on key challenges and opportunities for the sector

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Promoting new landmarks in the development of renewable energy in Scotland

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Accelerating the growth of our industry

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The long-term development of our organisation

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Developing our ideas on the main issues for the next Scottish Government as we approach the Scottish Parliament election in May 2016

It is important to me that our members are kept up to date with what we’re doing on their behalf, and the difference we’re making on a day-to-day basis. We have produced this review to give you a snapshot of the incredible breadth and depth of our work over the last 12 months, and the many benefits we have delivered. We all know that no business can stand still, and in the coming year Scottish Renewables will seek to lead our industry through a whole new set of new opportunities and challenges.

I sincerely hope we can continue to count on your support in the year ahead, and I look forward to working with you to ensure the future success of Scottish Renewables and the industries that we represent.

Niall Stuart Chief Executive Scottish Renewables

1 OUR WORK

TO SECURE THE OPTIMAL LEGISLATIVE, REGULATORY AND FISCAL FRAMEWORK FOR THE GROWTH OF RENEWABLES 2

ELECTRICITY MARKET REFORM Maintained a clear focus on ensuring a ‘route to market’ for all sectors and generators: →→

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Secured 18-month grace period for all biomass and biomass CHP projects below 400MW in the transition from the Renewables Obligation (RO) to Contracts for Difference (CfD)

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Granted additional funding for all technologies in the first CfD allocation budget. Secured representation on the CfD Offtaker of Last Resort advisory group

Secured 100MW minima allocation for marine generators across the RO and CfD Maintained UK Government commitment to the RO in light of new EU state aid guidelines Minimised impact of biomass conversion on the Levy Control Framework (LCF) with individual allocation to ‘Pot 3’

Influenced development of Offtaker of Last Resort (OLR) to ensure

viable route to market for independent generators

DEBATE ON FURTHER POWERS FOR SCOTLAND Represented the sector in the debate on Scotland’s future:

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Consistently argued for continuation of GB-wide electricity market before and after referendum Held a number of engagements with representatives of both the UK and Scottish Governments and from the Yes Scotland and Better Together campaigns during the debate over the referendum on independence Published Harnessing Scotland’s Energy, a document setting out the powers over energy policy and regulation that we would like to see devolved to Scotland, immediately after the referendum result became clear. Those asks include:

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The UK Government and devolved administrations to

agree on a joint energy policy strategy and

policy document that sets out overall UK

energy policy and the part that each of the devolved

nations can play in delivering that

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The energy regulator, Ofgem, becoming more

accountable for its decisions in Scotland

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Connecting Scotland’s islands to the GB transmission

grid before 2020 in order to help the islands fully

unlock their renewable electricity potential

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A devolved approach to community involvement

in renewable energy developments

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A more collaborative approach to financing the

marine energy sector

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That any changes to the management or structure

of the Crown Estate in Scotland ensure the

continuation of that organisation’s ongoing investment

and coordination programme

UK GENERAL ELECTION The next UK Government will determine the market for renewable heat and power beyond 2020. Working with RenewableUK and the Renewable Energy Association, we have set out the sector’s priorities: →→

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Setting a new renewables target for 2030 of 30% of UK energy Backing the Independent Committee on Climate Change’s recommendation to set a binding target for low carbon electricity by 2030

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Reforming the EU Emissions Trading Scheme to ensure the market takes account of all sectors’ polluting cost of carbon emissions

Funding the Renewable Heat Incentive (RHI) for new applications after 2016 Boosting the UK’s Renewable Transport Fuel Obligation to reach the 10% renewable energy target for transport by 2020 Supporting the Climate Change Act to keep us on course to meet our carbon commitments and back global efforts to tackle climate change 5

ONSHORE PLANNING →→

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Worked hard to achieve the right balance for onshore wind through the third National Planning Framework (NPF3) and Scottish Planning Policy (SPP), with changes to proposals on wild land and separation distances

MARINE PLANNING →→

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Worked on development of Carbon Calculator/Peat Guidance to get right balance of data requirements

A key member of the Eskdalemuir Working Group, which commissioned new research to lift MoD objections to onshore wind developments in the south of Scotland, releasing over 1GW of new development potential

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Continued to work with the Scottish Government to ensure the new marine planning system delivers the optimal conditions for Scotland’s offshore wind, wave and tidal energy industries Ensured the new Marine Protected Area network can be delivered alongside offshore renewable energy projects Worked through the Fishing Liaison with Offshore Wind and Wet Renewables Group (FLOWW) to publish best practice fishing liaison guidance Supported the Crown Estate in their delivery of a new leasing round for wave and tidal energy

FEED-IN TARIFF →→

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Participated in two Scottish Government ‘Hydro Summits’ with Ministers

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Responded to the Scottish Government’s consultation on the draft Heat Generation Policy Statement

Secured Scottish Ministerial support on hydro degression concerns

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Highlighted the lack of focus on heat by government and campaigned for renewable heat to become one of Scottish Government’s National Indicators, which are used to judge performance

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Contributed to the consultations on the revised Scottish Planning Policy and the Main Issues

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Report for National Planning Framework 3 to ensure that heat is fully supported through Scotland’s planning work

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Successfully worked with a number of external organisations, including Scottish Federation of Housing Associations, to allow Registered Providers of Social Housing access to the domestic Renewable Heat Incentive

Campaigned for the reinstatement of the 15kW bracket for small wind turbines

GRID

Secured reduced transmission access charges for generators on the Scottish mainland

Supported the SHETL Caithness-Moray link Needs Case, which has been approved by Ofgem

Supported development for CMP223 to ensure reduced liabilities enabled through CMP192 are passed through to embedded generators

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HEAT

2 OUR WORK

TO COMMUNICATE THE BENEFITS OF RENEWABLE ENERGY

TELLING OUR STORY →→

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Launched our first animated video and infographic, Renewables in Scotland: Adding Up to A Brighter Future. The multimedia package was designed to communicate the benefits that renewables are delivering today, and to be easily shared across social media Published the Employment in Renewable Energy in Scotland 2013 report, highlighting that the sector supports 11,695 jobs, then showcased those figures in local, national and international media

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Published an Offshore Wind Investment Figures report, showing a 55% decrease in investment year-on-year Published Marine Milestones report including key investment figures (over £200 million invested in wave and tidal) and highlighting the high percentage of Scottish supply chain content (62%)

Published an updated edition of Onshore Wind: What You Need to Know Updated and enhanced the Renewable Energy Sector in Numbers page on the SR website

PARLIAMENT →→

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Set out our views on Marine Protected Areas to Rural Affairs, Climate Change & Environment Committee Gave oral evidence at the Economy, Energy and Tourism Committee on NPF3 and SPP as part of our work on these crucial issues Regular engagement with politicians at Holyrood, Westminster and Brussels, including our annual member receptions at the Scottish and UK Parliaments to ensure elected members understand the benefits renewables are delivering today

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Provided briefings to MSPs to equip them with key facts and figures ahead of relevant debates Continued to provide the secretariat to the Scottish Parliament’s Cross Party Group on Renewable Energy and Energy Efficiency (SPREEE) Met regularly with key MSPs, MPs, MEPs and ministers at Holyrood and Westminster

MEDIA →→

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Issued more than 50 press releases and proactive media statements to local, national, trade and international media on topics including offshore wind investment, pumped storage hydro, grid charging, the Scottish Green Energy Awards, renewable heat, solar in Scotland, and many more Arranged publication of columns on all key policy areas in regional, national and trade media including Glasgow Herald, Energy North, Executive magazine, Scotsman and Flybe in-flight magazine Undertook a proactive media campaign to focus public and policymaker attention on renewable heat, including support for Harnessing Heat from Rivers event (EDIE, Scotsman), RHI and fuel poverty (Scotsman, Courier) and heat pumps (Scotsman) Took part in broadcast interviews on policy asks, events and key newslines on BBC Newsnight,

Reporting Scotland, STV Scotland Tonight, BBC Good Morning Scotland, BBC Radio Scotland Morning Call, Moray Firth Radio, Kingdom FM and more

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Used the attention given to Scotland during the referendum as an opportunity to set out key facts about the sector’s growth on BBC Breakfast and Channel 5 news reports, as well as in print and online media

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Gave media, crisis communications and public relations advice to member companies on request Held briefing meetings with journalists and editors from publications as diverse as the Sunday Times, Business Green, Financial Times, Sunday Herald, Channel 4 News, STV, Sunday Post, BBC, Dumfries and Galloway Standard and Carrick Gazette

3 OUR WORK

TO LEAD THE DEBATE ON KEY CHALLENGES AND OPPORTUNITIES FOR THE SECTOR

COMMUNITIES

HYDRO

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Developed and introduced a Community Benefit Protocol for Onshore Wind developments to ensure a standard approach with a minimum developer contribution of £5,000 per MW Contributed to Good Practice Principles for Onshore Community Benefits, now published by the Scottish Government Responded to a DECC and RenewableUK taskforce proposal for a Shared Ownership Framework and worked with Local Energy Scotland to begin to develop shared ownership initiatives

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Produced hydro pumped storage paper on economic barriers to development. Scottish Government to establish intergovernmental group to address funding gap Campaigned to change the Feed-in Tariff scheme to avoid potentially damaging cuts to funding, gaining support of Scottish Government and proactively lobbying DECC alongside Scottish Government and the British Hydropower Association Reproduced Good Practice During Hydro Construction guide with SEPA and Scottish Natural Heritage

Published a position paper on community benefits from offshore renewables which is informing the development of the Scottish Government’s best practice guidance

ONSHORE WIND

GRID

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Commissioned three reports as part of the Scottish Windfarm Bird Steering Group to better understand relationship between wind turbines and birds. Announced plans for good practice guide to incorporate the work into policy Helped to establish a Scottish- specific Aviation Work Group led by the Scottish Government Published a protocol for community benefits for onshore wind and produced a report in conjunction with Scottish Government and other key stakeholders on guidance for community benefits

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Commenced work on SR Networks Vision Project to evaluate the long-term development and operation of the electricity network Representation on the DECC / Ofgem ENSG workgroup promoting improved TO updates and focus on Needs Case Assessment Continued progress with the joint Scottish Renewables / RenewableUK / National Grid Generator Services Group, including first BELLA (Bilateral Embedded Licence exemptible Large power station Agreement) entering the balancing mechanism

Published a position paper on onshore wind repowering and successfully established a group with the Scottish Government to consider what steps need to be taken to prepare for repowering over the coming years

SKILLS →→

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Contributed to the Energy Skills Investment Plan, which examines the scale of opportunity in the energy sector and puts forward an action plan to ensure Scotland can reach its potential of up to 95,000 posts by 2020 Helped develop e-learning renewables skills platforms to be used in schools around Scotland

HEAT →→

Organised a Harnessing Heat from Rivers event to promote the benefits of large-scale heat pumps as well as addressing the practical aspects of heat networks and the pros and cons of other renewable heating options

MICRO →→

Representation on the Scottish Government’s Microgeneration Task Group, set up to progress actions outlined in the Microgeneration Strategy for Scotland

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Contributed to Smartest Energy’s Energy Entrepreneurs Report 2014 Scotland

SOLAR →→ Held SR:AM event to bring together

key stakeholders for a discussion about the future of large-scale solar deployment in Scotland

SUSTAINABLE ENERGY FOR ALL →→ Co-chairing the Scottish

Government’s Sustainable Energy for All Forum, which aims to position Scotland as an invaluable global partner in delivering on UN SE4All objectives through the sharing of our internationally- recognised renewable energy expertise

MARINE →→

Initiated work which led to the Scottish Government’s commitment to deliver a new strategy for marine energy. We remain a key partner in the development of the strategy

OFFSHORE WIND →→

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Worked in conjunction with Scottish Enterprise to deliver a gap analysis of the Scottish offshore wind supply chain Together with the Scottish Government, delivered the Offshore Wind Industry Group’s Offshore Wind Route Map 2013. We are now leading the development of the route map’s refresh for 2015 Provided input to the BIS Offshore Wind Industrial Strategy

4 OUR WORK

TO ACCELERATE THE GROWTH OF OUR INDUSTRY

EVENTS Our events programme plays a key role in bringing the different parts of our sector together to debate the issues that matter, to share latest thinking, and to make valuable business contacts.

THIS YEAR WE DELIVERED: →→ The Scottish Green Energy Awards – 5 December 2013, Edinburgh • 950 guests

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Onshore Wind Conference & Exhibition – 24 June 2014, Edinburgh

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Scottish Independence Referendum Event with Yes Scotland – 30 June 2014, Glasgow

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CfD: Eligibility Workshop – 1 July 2014, Glasgow • 85 delegates

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CfD: Delivery Workshop – 16 July 2014, Glasgow • 70 delegates

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Marine Conference, Exhibition & Dinner – 23 and 24 September 2014, Inverness • 300 delegates and 34 exhibitors

Offshore Wind & Supply Chain Conference, Exhibition & Dinner – 28 and 29 January, Aberdeen

• 800 delegates and 50 exhibitors →→

Annual Conference, Exhibition & Dinner – 18 and 19 March 2014, Edinburgh

• 1,000 delegates and 51 exhibitors →→

Heat & Bioenergy Conference & Exhibition – 28 April 2014, Perth

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Hydro Conference & Exhibition – 3 June 2014, Perth

• →→

90 delegates and 7 exhibitors

130 delegates and 13 exhibitors

160 delegates and 15 exhibitors

63 delegates

We also delivered monthly SR:AM events on industry issues, allowing members to learn about and discuss the latest industry thinking.

Scottish Independence Referendum Event with Better Together – 16 June 2014, Glasgow

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65 delegates 18

PARTNERSHIP WORKING

SKILLS

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Worked with Scottish Enterprise and the Energy Technology Partnership to create the Scottish Cluster in the European North Sea Energy Alliance (ENSEA) project. Together with partner clusters from Norway, Germany and the Netherlands, this European Commission funded project is focused on Energy Systems Integration around the North Sea and examining how energy systems must change to accommodate more renewable energy Work closely with Highlands and Islands Enterprise to develop and deliver Marine Energy Conference with strong focus on supply chain development

Delivered the pilot Transitional Training Network on behalf of EU Skills, mapping gaps in skills and training for experienced recruits from other industrial sectors

SUPPLY CHAIN SUPPORT →→

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Held Sharefair event at Offshore Wind and Supply Chain Conference to allow supply chain businesses access to developers and other key industry figures Worked in partnership with Scottish Enterprise to deliver the Offshore Wind & Supply Chain Conference in Aberdeen.

Hosted Offshore Wind Supply Chain Gap Analysis workshops with Scottish Enterprise, and worked with HIE and SE to update offshorewindscotland.org.uk

5 OUR WORK

TO DEVELOP SCOTTISH RENEWABLES

INVESTING IN LONG-TERM DEVELOPMENT OF OUR ORGANISATION It is vital that Scottish Renewables has a well-resourced and capable team to deliver on the objectives set out above. This year we have: →→

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Again increased turnover from events and membership to invest in our team and facilities

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Increased skills through:

Investment in training in areas of:

• Management

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Project Management

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Media Presentation

• Presentation

Introduced a number of changes to the team to focus on providing value for money to our members

• Marketing

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Public Affairs

Created a new role of Media Manager – with clear and positive results

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Technical and Financial

Aspects of CfDs and

Balancing System

Promoted from within to retain key skills and experience

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Managed costs in key areas of expenditure Increased our cash reserves to ensure the long-term financial health of the organisation

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Secondments in and out of the organisation

For more information on Scottish Renewables’ work on behalf of the industry and to find out how you can get involved, please contact info@scottishrenewables.com or call 0141 353 4980. We look forward to hearing from you.

WORKING TOGETHER FOR A BRIGHTER FUTURE