ANNUAL REVIEW
2012-2013
OUR VISION
A Scotland that harnesses the full economic, social and environmental potential of all forms of renewable energy, and that is recognised internationally as a leader in the development of new technologies
OUR MISSION
To ensure the optimal environment for the development of the renewable energy industry in Scotland
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INTRODUCTION
It’s clear that 2012-13 was an important year for Scotland’s renewable energy sector, but also for Scottish Renewables. We were at the very heart of the increasingly intense debate
we provide to all our members and in the work we do to
on energy and climate change in Scotland, and this year’s
represent the industry. I believe that we are seeing the benefits
annual review sets out the huge amount of work done by
of a stable staff team, whose skills and experience are vital
the organisation to ensure the optimal environment for the
to the high profile and high pressure environment that the
development of renewable energy in Scotland.
organisation is working in.
It is difficult to ever pinpoint precise cause and effect, but I
There were also some important changes to the organisation,
know that the organisation played a key role in campaigning
with the development of a new, focused set of strategic
for important changes to support the continued growth of the
objectives, and the move to our new office space in Glasgow - a
sector, in areas such as Electricity Market Reform, grid access
great facility for the staff team and for member engagements
and charging, renewable heat, and planning policy.
and meetings.
We sat on a number of high-level decision-making bodies and
All of our growth and our successes have been built on close
engaged regularly with government in Whitehall and Holyrood
ties with our membership, and strong partnerships with
to represent the views of our members on the big issues.
agencies and organisations such as HIE, Scottish Enterprise
The team was also focused on clearly communicating the benefits the industry is bringing to Scotland through old and new media and to all key stakeholders, highlighting
and Renewable UK, and those close working relationships will be more important than ever as we seek to navigate the increasingly difficult challenges ahead.
government figures on capacity and output, and developing our
I would like to take this opportunity to thank all our members
own figures on jobs, investment and carbon emissions. It is
and partners for their valued contribution to our achievements.
clear that our annual employment report, for example, is now
I hope we can count on your continued support as we seek to
the definitive reference in this area.
meet both our respective and shared ambitions for the future.
2012-13 saw further increases in membership and events
Ronnie Bonnar Chairman
income, allowing us to again invest in the quality of the service
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SECURE THE OPTIMAL LEGISLATIVE, REGULATORY AND FISCAL FRAMEWORK Scottish Renewables aims to secure the optimal legislative, regulatory and fiscal framework for the growth of renewables in Scotland
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In 2012-13 Scottish Renewables played a key role in securing a number of important outcomes for the sector:
ECONOMICS, MARKETS AND FINANCE →→Draft strike prices for Contracts for
Difference (CfD) under Electricity Market Reform (EMR) →→Commitment by DECC to strike price
uplift for Scottish Islands in the Contracts for Difference →→Removal of risks behind CfD
contract terms →→Greater clarity and insight from DECC on
methodology, key CfD inputs and assumptions within the draft EMR Delivery Plan →→Change of policy to allow Registered
Providers of Social Housing access to the domestic Renewable Heat Incentive
→→Enhanced RO band for ‘innovative’
offshore wind from Scottish Government →→Improved industry engagement from
DECC on electricity ‘route to market’ solutions, leading to ‘offtaker of last resort’ proposal →→Marine Renewables Commercialisation
Fund to be refocused on ‘wave technologies’ helping to address concerns raised through SR about wave funding →→Increased installed capacity ceiling
for wood-fuelled dedicated biomass generating stations under ROS, to improve CHP feasibility
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ENERGY NETWORKS AND INFRASTRUCTURE →→Ofgem’s published ‘minded-to’ position
→→Considerable reduction in bid prices and
for transmission network use of system charges set to deliver sizeable reduction in charges for Scottish mainland generators
increase in renewables participation in System Operation
INCREASED, REGULAR INDUSTRY ENGAGEMENT WITH SCOTTISH DISTRIBUTION NETWORK OPERATORS LEADING TO CONSIDERABLE IMPROVEMENTS IN SERVICE, INCLUDING:
→→
→→ improved payment schedules for
embedded generators →→ identification of legacy contracts,
and either freeing up capacity or identifying where these projects are making slower progress than planned →→ introduction of named account managers
with a defined escalation process
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CONSENTS, LICENSING AND DEPLOYMENT →→Terrestrial planning fees increased by
substantially lower level than proposed →→Additional funding for planning
authorities of £673,000 from Scottish Government to ensure councils have the appropriate resources to process wind turbine applications effectively →→Substantially shaped Marine
Scotland’s proposals under Planning Scotland’s Seas →→New Crown Estate leasing round with
focus on ‘demonstration zones’ and introduction of ‘third party management’ of these zones; leasing of further demonstration sites in line with SR’s asks
→→Changes made to the reporter’s code
to address our concerns with choice of Review and Appeals procedure →→Clarification from the Scottish
Government over sections of the Scottish Water Resources Bill to promote hydro development →→Less onerous sampling requirements as
part of the Scottish Government’s carbon calculator, expected to save significant time and up to tens of thousands of pounds per application
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POLITICAL LEADERSHIP →→Scottish Government decarbonisation
target set
POSITIVE REPORT BY HOLYROOD’S ENERGY, ECONOMY & TOURISM COMMITTEE ON RENEWABLES TARGETS, HIGHLIGHTING SCOTTISH RENEWABLES’ EVIDENCE THROUGHOUT, AND RECOMMENDATIONS IN LINE WITH OUR ASKS, INCLUDING:
→→
→→ Electricity target can be met, as long as key
challenges overcome →→ Greater challenges to meeting heat target;
ramp up CHP and district heating →→ Planning authorities to produce Spatial
Frameworks in Development Plans that are consistent with national policy, supported by Scottish Government →→ Planning authorities and Scottish
Government to produce regular reports on renewables projects to indicate local progress towards national targets
→→ Scottish Government to streamline consent
processes for transmission infrastructure →→ Broadly positive Audit Scotland report
on Scottish Government’s performance on renewables, highlighting the need for better progress reporting and more action to advance renewable heat →→ Recognition of ‘Ocean Energy’ at EU
Strategic Energy Technology (SET) Plan conference
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COMMUNICATING THE BENEFITS Ensure continued political and public support for the growth of renewable energy in Scotland by clearly communicating the benefits delivered by the sector
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In 2012-13 Scottish Renewables set out the benefits delivered by renewables through: →→Programme of events to highlight the 70th
anniversary of Scotland’s hydro sector and the benefits that the sector continues to deliver →→Extensive research for Annual Employment
Report published in January 2014 showing almost 12,000 jobs in the sector →→Regular publication of key stats that tell
the story of the sector’s continued growth and positive impact on the economy and environment →→Numerous columns and press releases
→→Ongoing development of SR website →→Participation in relevant conferences/
events to communicate our messages to targeted audiences →→Targeted use of social networking sites,
such as Twitter, to promote our work and key messages →→Annual Scottish Parliament and
Westminster receptions →→Attendance at four main Scottish political
party conferences
that reinforce the positive impacts of renewable energy developments
→→Regular meetings with party leaders/
→→Regular meetings with journalists and
→→Publication and distribution of briefing
opinion formers →→Broadcast interviews around key
publications and other SR and third party announcements →→Completion of ‘The Basics’ series of
energy spokespeople materials ahead of all relevant political debates →→Targeted meetings with local authority
politicians and officials on areas of significant importance to the wider industry
documents explaining basic information on each technology
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REPRESENTATION ON NUMEROUS GROUPS CENTRAL TO THE INDUSTRY’S FUTURE:
→→
→→ Scottish Energy Advisory
Board,chaired by the First Minister →→ Renewables Industry Advisory Group
(RIAG), co-chaired by Energy Minister Fergus Ewing MSP and Scottish Renewables’ Chief Executive Niall Stuart →→ DECC’s renewable trade associations EMR
stakeholder group →→ DECC and Ofgem’s Electricity Networks
Strategy Group
→→ Ofgem’s Project TransmiT Technical
Working Group →→ Ofgem’s Distributed Generation forum →→ Marine Strategy Forum, chaired by Marine
Scotland →→ RIAG Offshore Wind Industry Group →→ Renewables Industry Advisory Group
(Community Renewables Implementation Group) →→ Audit Scotland advisory group on its
Renewable Energy report
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LEADING THINKING Lead thinking on key challenges and opportunities for the sector; and provide a forum for debate and discussion on the future of the industry
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In 2012-13 we took forward the following work to lead the debate on the renewable energy sector and the areas that will underpin continued growth: →→Analysis of Contracts for Difference terms,
showing new and greater risk →→Published offshore wind investment
figures showing positive contribution of sector to the economy →→Member of European North Sea Energy
Alliance project to share knowledge on energy system integration and highlight key projects for EU Horizon 2020 fund
DEVELOPMENT OF INDUSTRY KNOWLEDGE AND GOOD PRACTICE VIA VARIOUS STAKEHOLDER GROUPS:
→→
→→ Scottish Windfarm Bird Steering Group →→ Scottish Government’s Eskdalemuir
working group →→ Scottish Government’s Wind farm
Impact Study Steering Group
→→ SNH Windfarm Decommissioning Good
Practice Guidance steering group →→ Scottish Government & SNH
renewables statistics meetings →→ Scotland’s Moorland Forum
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→→Continued assessment of threats and
opportunities from Europe; principally market integration →→Monitored the ongoing debate on
Scottish independence to put forward key principles essential for continued success of renewables →→Produced Marine Milestones Report 2013
highlighting progress of wave and tidal energy projects
DELIVERED A COMPELLING PROGRAMME OF CONFERENCES FOCUSED ON:
→→
→→
On-site renewables
→→
Electricity Market Reform
→→
Offshore Wind
→→
Renewable Heat and Bioenergy
→→
Grid
→→
Hydropower
→→
Planning
→→
Onshore Wind
→→
Skills
→→
Marine Energy
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ACCELERATING GROWTH Accelerate growth of the sector through delivery of our member services and partnerships with skills and economic development agencies
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In 2012-13 we delivered a number of strategic projects to accelerate the growth of our industry, its skills base and the supply chain: →→ Delivered a “Share Fair” concept, to enable
→→ Engaged and strengthened partnerships
supply chain organisations to engage with key players in the Offshore Wind market place
with Scottish Enterprise, Highlands & Islands Enterprise, Invest in Fife and Scottish Government to ensure we are supporting their work to grow the economic footprint of the sector
→→ Speed Technology Updates at our Marine
and Offshore Wind Conference involving quick-fire updates from developers on projects being progressed and from technology developers providing solutions for projects →→ Exhibition showcase at Offshore Wind
Conference, Annual Conference and Marine Conference to give delegates the opportunity to hear about our exhibitor’s project findings, products or services and facilitate introductions →→ On-site Renewables Event to communicate
→→ Membership of Energy Skills Action Group →→ Support of Transitional Training Network →→ Launched monthly SR:AM Business
Breakfasts for our members by our members providing focused discussions in key industry areas (Finance, Supply Chain, Planning) →→ Networking Events on themed discussions
relevant to the main challenges facing parts of the sector
the benefits of small scale renewables to landowners, businesses and homeowners →→ Produced and distributed the second in-
house Scottish Renewable Energy Directory - a ‘who’s who’ of the renewables industry in Scotland, fostering better links between businesses 16
A STRONG AND DYNAMIC ORGANISATION Investing in the ongoing development of Scottish Renewables and our team to ensure we meet the needs of the industry and our members
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In 2012-13 we again grew revenue to be invested in our work on behalf of the sector and introduced the following changes to strengthen our organisation for the future: →→ Refreshed and refocused set of
strategic objectives. →→ Turnover at £1.54m - up 25% on
previous year →→ Income from membership and events up
10% and 35% respectively →→ Record attendance at our Annual, Offshore
Wind and Marine Conferences
→→ Increasingly experienced and capable
staff team →→ Restructure of policy team to focus on
key areas onshore, offshore, and in grid and markets →→ New format of Annual Conference to
address the big issues for the sector, and the key areas underpinning growth of all parts of the industry
→→ New office facilities to accommodate
expanded team and more member events →→ Expansion of team with new Media
Manager and Marketing Manager posts
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WORKING TOGETHER FOR A BRIGHTER FUTURE