Chamber and committees

Information gathered from market sources has indicated that specifying specific quantities of renewable electricity can lead to reduced competition. The upturn in demand for renewable electricity has resulted in reduced quantities being readily available leading to an increased risk that few, if any, suppliers could meet a large demand from the Scottish public sector.

The national contract tender contains provisions to ensure that access to renewable electricity is not dependent on the renewable supplies available from any particular supplier at the time of submitting their tender. Innovative contract terms will ensure that other sources of supply can be accessed as necessary.

I refer the member to the answer to question S3W-15700 on 10 September 2008. All answers to written parliamentary questions are available on the Parliament''s website, the search facility for which can be found at http://www.scottish.parliament.uk/webapp/wa.search.

The tender requests suppliers to provide details of their Automatic Meter Reading Offer and seeks to leverage the demand from the Scottish public sector to reduce the cost of implementation of such solutions. Installation of meters will remain within the control of individual public bodies in accordance with local policy and budgetary priorities. It is therefore not possible at this time to estimate the number of meters which may be installed.

The national contract will give public sector organisations the option to buy renewable electricity dependant on availability and payment of appropriate premiums.

The overall portion of renewable electricity purchased will therefore depend on the quantities specified by individual public bodies in line with their own policy and budget priorities.

Market participants were requested to provide information on a number of issues. The list was in no specific order.

The Scottish ministers'' high level output specification (HLOS) was published in July 2007 and specified ministers'' requirements for the rail network from April 2009 to March 2014. The HLOS makes clear that Network Rail require to pursue continued improvements to operational and financial performance, including improved resilience. The public funding available to support the HLOS includes an appropriate element for the continued maintenance of the Scottish rail network.

Market indicators have suggested that the demand for renewable electricity has significantly increased as both public and private sector organisations have sought to demonstrate green credentials. This has resulted in supplies of renewable electricity being constrained in the market place both in terms of total availability and the quantities available from individual suppliers. The request for information process therefore sought information from the market on availability of renewable electricity to inform the strategy for the national electricity contract for the Scottish public sector.

The tender is focused on selecting the electricity supplier(s) for the national contract in accordance with the most economically advantageous tender. Energy reduction initiatives are defined, developed and monitored by individual public bodies and are carried out in line with their own policy and budget priorities. The national electricity contract aims to support these activities with input from suppliers.

Progress is being made on realising the renewable capability across the public sector in a number of ways:

Through the Scottish Government''s Leading By Example programme we are ensuring all parts of the public sector play an exemplary role in pioneering new greener behaviours. Generating more sustainable low carbon energy through renewables is an important element of the programme;

We have extended the public sector fund to allow it to be used to support renewable technologies as well as energy efficiency;

We have tripled funding for community and microgeneration, with  £13.5 million available each year compared to the previous administration''s £4.5 million;

We are more actively promoting the UK Government''s Low Carbon Building Programme which provides grants to the public sector for renewable technologies, and

We are introducing dedicated School Development Officers to support the deployment of renewable technologies in schools.

The national contract arrangements will help facilitate the development of renewable generation by ensuring appropriate tariffs are set for surplus electricity generated by public sector bodies fed back into the national grid, and thus support business cases for the installation of such technologies.

I refer the member to the answer to question S3W-15736 on 10 September 2008. All answers to written parliamentary questions are available on the Parliament''s website, the search facility for which can be found at http://www.scottish.parliament.uk/webapp/wa.search.