Scottish Government on Energy Bill

The First Minister has written to the Energy Secretary setting out the Scottish Government’s position on the Energy Bill. The response concentrates on measures that will support the Scottish Government’s renewables targets.

“To that end, we are working to ensure Scotland’s future role in the EMR process is robust, meaningful and enduring. In particular, we are committed to working with DECC and National Grid in the development of the first delivery plan for Contracts for Difference. In doing so, my intention is to ensure that the specific circumstances of, and advantages for renewable development in Scotland, are considered in setting the first strike and reference prices in the Contracts for Difference framework.”

There is a predictable criticism of the use of the Levy Control Framework for nuclear and the need for a 2030 decarbonisation target:

“Last week, we welcomed the UK Government’s commitment to funding support for low-carbon electricity up to 2020 with the announcement of £7.6 billion under the Levy Control Framework. But I am clear that the UK Government must use this money to promote emerging energy sources, including renewables, and not to support already mature technologies, such as nuclear. The absence of a 2030 decarbonisation commitment will make it harder for the industry to plan for the long term. And in turn will mean that we in Scotland will need to work even harder to build on the excellent start we have made in building a domestic Supply Chain for the renewables sector. I would urge the UK Government to provide greater reassurance to the industry for the long term.”

The FM also shares wider concerns about measures to tackle energy prices and reserves the Scottish Government’s position on their Renewables Obligation until they see the full UK proposals. However, overall perhaps somewhat more constructive than the Energy Secretary was expecting.

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