Chamber and committees

Of the £49.1 million allocated toward the Climate Action and Just Transition Fund, £20 million has been allocated toward the Just Transition Fund for the North East and Moray. The remaining £29.1 million is split across a wide range of policies and programmes as detailed in the level 4 budget spreadsheet. The exact allocation between these policies and programmes will be confirmed once the Budget Bill has completed its passage through Parliament.

We do not have modelling explicitly calculating the potential impact of the closures of Hunterston and Torness however we believe that nuclear power represents poor value for consumers. There remains considerable uncertainty around the economics of new nuclear generation, and the long-term storage of nuclear waste remains a difficult issue. The latest Contracts for Difference (CfD) auction delivered offshore wind at £39.65 per megawatt hour – substantially below the £92.50 awarded to Hinkley. Internal analysis tells us that in 2030 alone Hinkley could add almost £40/year to a consumer bill, whilst the equivalent offshore wind farm would reduce consumer bills by £8/year.

The Scottish Government is developing an Energy Strategy & Just Transition Plan which will be published in 2022. This document will serve as a plan to transition from today’s energy sector to an new, net-zero sector which meets the 2030 and 2045 climate targets in a fair and just way for all of Scotland.

The Scottish Government published an analysis of the suitability of low and zero emissions heating systems across the whole housing stock, including off-gas-grid homes. The report can be found at https://www.gov.scot/publications/technical-feasibility-low-carbon-heating-domestic-buildings-report-scottish-governments-directorate-energy-climate-change/

Chapter 2 of the Heat in Buildings Strategy sets out further considerations, uncertainties and evidence pertaining to the suitability of different technologies in different contexts. https://www.gov.scot/publications/heat-buildings-strategy-achieving-net-zero-emissions-scotlands-buildings/pages/3/

The Scottish Government has previously commissioned research which considered the capital and operational costs associated with zero direct emissions heating (ZDEH) technologies within new homes, which encompassed various types of air source heat pumps and direct electric heating. The report, however, did not specifically consider infrared heating panels. A copy of this research is available here: Costs of zero emissions heating in new buildings (climatexchange.org.uk)

As set out in the Scottish Government’s Heat in Buildings Strategy, we are developing regulations to ensure that new homes, applying for a building warrant from 2024, must use ZDEH systems. We consulted on initial proposals for these regulations during 2020-21, and have published an analysis of the consultation responses, which will inform the final design of the regulations. It is our intention for these regulations to be technology-neutral, to ensure developers have flexibility in achieving compliance. At the introduction of these regulations, a full Business and Regulatory Impact Assessment (BRIA) will be published – which will set out the costs and benefits of the policy options considered. We will also undertake a range of impact assessments, including a BRIA, on our proposals to regulate heating systems in existing homes (including off-gas grid homes) when we separately introduce the necessary legislation to achieve this.

Home Energy Scotland (HES) deliver the Home Energy Scotland Loan Schemes on behalf of Scottish Government. Home Energy Scotland does not recommend measures to customers, but instead offers funding for measures recommended on an EPC or renewables report.

A number of zero carbon space and water heating technologies are available for funding through Home Energy Scotland:

Water Heating Systems

Heat Pumps (either air source to water, ground source to water, water source to water or hybrid air source to water)

Biomass boilers or stoves (non-automated, non-pellet stoves or room heaters are not eligible)

All the above measures attract cashback under the HES Renewables Loan Scheme.

The Scottish Government has previously commissioned research which considered the capital and operational costs associated with zero direct emissions heating (ZDEH) technologies within new homes, which encompassed various types of air source heat pumps and direct electric heating. The report, however, did not make a distinction between ducted or ductless heat pumps. A copy of this research is available here: Costs of zero emissions heating in new buildings (climatexchange.org.uk)

As set out in the Scottish Government’s Heat in Buildings Strategy, we are developing regulations to ensure that new homes, applying for a building warrant from 2024, must use ZDEH systems. We consulted on initial proposals for these regulations during 2020-21, and have published an analysis of the consultation responses, which will inform the final design of the regulations. It is our intention for these regulations to be technology-neutral, to ensure developers have flexibility in achieving compliance. At the introduction of these regulations, a full Business and Regulatory Impact Assessment (BRIA) will be published – which will set out the costs and benefits of the policy options considered. We will also undertake a range of impact assessments, including a BRIA, on our proposals to regulate heating systems in existing homes (including off-gas grid homes) when we separately introduce the necessary legislation to achieve this.

The Scottish Government has previously commissioned research which considered the capital and operational costs associated with zero direct emissions heating (ZDEH) technologies within new homes, which encompassed various types of air source heat pumps and direct electric heating. The report, however, did not make a distinction between ducted or ductless heat pumps. A copy of this research is available here: Costs of zero emissions heating in new buildings (climatexchange.org.uk)

As set out in the Scottish Government’s Heat in Buildings Strategy, we are developing regulations to ensure that new homes, applying for a building warrant from 2024, must use ZDEH systems. We consulted on initial proposals for these regulations during 2020-21, and have published an analysis of the consultation responses, which will inform the final design of the regulations. It is our intention for these regulations to be technology-neutral, to ensure developers have flexibility in achieving compliance. At the introduction of these regulations, a full Business and Regulatory Impact Assessment (BRIA) will be published – which will set out the costs and benefits of the policy options considered. We will also undertake a range of impact assessments, including a BRIA, on our proposals to regulate heating systems in existing homes (including off-gas grid homes) when we separately introduce the necessary legislation to achieve this.

Our draft Energy Strategy and Just Transition Plan is currently being developed. This will include co-design as a key underpinning principle, ensuring workers from across the energy sector have the opportunity to contribute towards this process.

In addition, the Scottish Government is investing £300m in the Edinburgh and SE Scotland City Region Deal, which will create new economic opportunities across the area and is expected to provide up to 21,000 jobs. This includes £25m for an Integrated Regional Skills and Employability Programme, which will help local people prepare for the changing regional labour market and benefit from the many new jobs that the Deal and other investments across the region are creating.

Security of electricity supply is a reserved matter and is delivered by National Grid ESO across the whole of Great Britain under regulation from Ofgem. Scotland is part of a GB electricity system that is managed by National Grid in its role as Electricity System Operator. NGESO is responsible for sourcing generation to meet demand.

A mixture of renewables, storage and carbon capture technology – as well as increased interconnection across GB and to the continent – can support a secure and decarbonised power sector in Scotland following the closure of the existing large nuclear generators.

Scotland is currently a net electricity exporter and in 2020 exported 20.4 TWh of electricity, equivalent to powering every household in Scotland for 26 months. It only imported a little over 1 TWh of electricity, meaning that net exports of electricity were 19.3 TWh in 2020, its highest year on record.