Chamber and committees

The National Renewables Infrastructure Fund is not split out on an annual funding basis. Funding awards are made in response to the open call for Expressions of Interest.

The call for Expressions of Interest had an initial deadline of 10 December 2010, but there remains a continuing open call.

The most recent data published by the Department of Energy and Climate Change (DECC) shows that in 2011 Scottish Combined Heat and Power (CHP) schemes generated 2,864 GWh of electricity (up 3.1% from 2010) and 6,813 GWh of heat (up 1.7% from 2010).

We do not currently have projections for the energy production from CHP plants in 2020. As set out in the Draft outline, Heat Vision published on 29 January 2013, the Scottish Government is developing a longer term strategy that looks at heat in the wider context of available energy resources, and demand. We will publish a Heat Generation Policy Statement (HGPS) later this year. The HGPS will look to replicate and build upon the success of the Electricity Generation Policy Statement in providing clarity on the Scottish Government’s views on the generation of heat within Scotland. Work is underway to gather data and identify where further information is required.

The uptake of CHP depends upon the availability of markets for heat. The Scottish Government is working with local authorities to help them identify suitable locations and support planning for CHP and district heating through its Heat Mapping Programme. The heat maps help identify, plan for and maximise opportunities for local heat use and to support investment decisions on strategic heat infrastructure. The maps will not only benefit local authorities, but can also support feasibility work of developers or local communities.

Highland, Fife and Perth and Kinross completed maps through the Scottish Government pilot. A two year programme began in April 2012 to roll out this methodology to all Scotland’s Local Authorities by March 2014. Eight local authorities are beginning work to collect the information for their heat maps. These are Edinburgh, Glasgow, Aberdeen City, Aberdeenshire, Dundee, Stirling, Falkirk and Clackmannanshire.

Communities and public sector institutions can access funding for feasibility studies through the Warm Homes Fund and District Heating Loan Fund, which can also help finance the capital costs of CHP projects. Feasibility support for the development of Anaerobic Digestion (AD) facilities by communities, industrial sites and the NHS is also available from Zero Waste Scotland. Zero Waste Scotland is also planning to offer financial support for AD development in remote and island communities in 2013-14.

Support is available for Combined Heat and Power (CHP) from a number of sources. The main direct support mechanisms for renewable Combined Heat and Power (CHP) are the Renewables Obligation (Scotland) and the UK Government’s Renewable Heat Incentive.

The Renewables Obligation (Scotland) gives two Renewables Obligation Certificates (SROCs) for every megawatt hour of electricity generated by biomass electricity generating plants with CHP. Following its recent consultation on changes to the Renewables Obligation (Scotland), the Scottish Government proposes to go further by setting an eligibility requirement for plants over 15 MW to meet good quality CHP standards to further drive uptake of CHP. There is no specific budget allocation for CHP under the Renewable Obligation (Scotland) but Ofgem, who administer the schemes, provides an annual report on the number of accredited biomass plants with CHP and the number of SROCs issued in the previous year.

In the current Parliamentary session, finance for renewable CHP plants is also available through the £103 million Renewable Energy Investment Fund and the £50 million Warm Homes Fund. Finance for both renewable and non-renewable CHP is available through the £5 million District Heating Loan Fund. These schemes fund a range of renewable heat-only, CHP and district heating projects and there is no specific budget allocation for CHP.

I refer the member to the answer to question S4W-12930 on 5 March 2013. 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/parliamentarybusiness/28877.aspx.

The most recent data published by the Department of Energy and Climate Change (DECC) shows that between 2009 and 2011, the number of Combined Heat and Power (CHP) plants in Scotland increased by 31, to 116. This includes both renewable and fossil fuel systems.

We do not currently have projections for the number of CHP plants that will be operational in 2020. As set out in the Draft outline Heat Vision published on 29 January 2013, the Scottish Government is developing a longer term strategy that looks at heat in the wider context of available energy resources, and demand. We will publish a Heat Generation Policy Statement (HGPS) later this year. The HGPS will look to replicate and build upon the success of the Electricity Generation Policy Statement in providing clarity on the Scottish Government’s views on the generation of heat within Scotland. Work is underway to gather data and identify where further information is required.

Applications to the fund are in the form of Expressions of Interest. To date Scottish Enterprise and Highlands and Islands Enterprise have received 42 Expressions of Interest, with the call remaining open.

When National Renewables Infrastructure Fund (NRIF) was set up the overall assessment of the potential scale of the offshore wind industry was 28,000FTE. The purpose of NRIF is to support the development of the supply chain that creates these jobs. This sits alongside other investment measures and support mechanisms from Scottish Enterprise (SE), Highlands and Islands Enterprise and other public bodies.

To date, Scottish Enterprise (SE) has spent £2,567,935 to support the development of a range of N-RIF projects at various Scottish locations, namely Port of Dundee, Port of Leith, Rosyth, Methil, Hunterston, Inchgreen and Westway.

To date Highlands and Islands Enterprise (HIE) has spent £6,255,652 to support the development of a range of N-RIP projects at various HIE locations, namely, Kishorn, Arnish, Machrihanish, Nigg, Wick, Stornoway, Scrabster and Mallaig.

SE and HIE continue to work with owners at these various locations in developing proposals to meet current market opportunities.

In terms of private funding projects, again SE and HIE are working closely with site owners to progress consent applications and funding packages. Funding packages are in place for a number of other ports with differing public/private funding splits.