1. The role of renewables in electrifying road transport Jenny Hogan Director of Policy

2. Overview Renewables: the story so far Growth in generation in Scotland The future UK power mix The electricity network and renewables Changes to the network System operation Scottish Renewables Networks Vision > | > | scottishrenewables.com

3. Growth of renewable electricity in last 7 years Installed capacity almost trebled Largely driven by the Renewables Obligation support scheme, and the Feed-in Tariff for smaller-scale projects

4. Resource: wind, rainfall, waves, tides, land (and even sunlight!) Ambition: 2020 targets Support frameworks: Renewables Obligation, FiT and Contracts for Difference Expertise: International reputation for engineering excellence, including subsea, 70 years of hydro generation, academic leadership, test and demo centres Drivers for growth

5. Renewables generation mix in Scotland Majority of generation is onshore wind, with around a third of output from hydro Offshore and onshore wind are the biggest potential growth sectors

6. Renewables as a proportion of generation As a proportion of electricity generation, renewables provides a third Figures for the first half of 2014 show that renewables are now the main source of power in Scotland, generating more than either nuclear, coal or gas

7. Renewables as a proportion of demand Renewable electricity generates equivalent of half our electricity demand Scottish Government target is 100% demand-equivalent by 2020 Scotland generates more power than it uses; net exporter of electricity

8. Political and investment risk from Conservative Government policy reforms: Cutting support (RO & FiT) for onshore wind, solar, hydro and anaerobic digestion (AD) Delayed next auction round for ‘Contracts for Difference’ and no budget clarity Indications that onshore wind and possibly solar will not be included in future CfD rounds No indication of future budget to incentivise new low carbon investment beyond 2020  Currently no clear route to market for new renewables projects  UK dropped out of the top ten of the EY Renewable Energy Country Attractiveness Index for the first time What’s stopping us?

9. Scenarios for UK electricity mix in 2030 Power Sector Scenarios for the Fifth Carbon Budget - 22 Oct 2015 Committee on Climate Change, 2015

10. Transmission Distribution Homes and Businesses Generation emissions The electricity network: today

11. Infrastructure Scottish network increasingly constrained Many connection dates go beyond 2020 Up-front costs extremely high Trade off of uncertainties: Scottish islands Timescales for development and delivery

12. Transmission Distribution Homes and Businesses Generation emissions Electric vehicles Smart appliances Domestic Storage Pumped storage More interconnection Demand Management The electricity network: where are we going?

13. What Next? SR Networks Vision Clearer division of responsibilities for system operation between SO, DNO, TO? Setting the right incentives for non-firm connections Smarter networks: understand the system benefits, set out the ambition and plan Storage: set the right incentives and add value to the system scottishrenewables.com/publications/energy-storage-basics/ Electric vehicles We know provide lots of benefits to the system Need a strategy, regulatory framework, right incentives – long process still ahead

14. Thank you Jenny Hogan Director of Policy JHogan@ScottishRenewables.com www.scottishrenewables.com