1. Renewable Targets and Policy Linda Pooley Head of Renewable Energy Technology and Investment Scottish Governmnet

2. Overview Scotland's green energy potential Scotland’s Renewables Targets Renewable Target assumptions, Challenges and Progress Keeping the lights on

3. Scotland’s Energy Potential A quarter of Europe's tidal and offshore wind potential A tenth of Europe’s wave power 25 percent of Europe’s wind power

4. Meeting statutory emissions reduction targets:≥42% CO2e emissions cuts by 2020 (1990 base) ≥ 80% by 2050 Scotland’s low carbon economy was worth £8.5bn in 2007-08 and is forecast to grow to £12bn by 2015-16, over 10% of the economy. There are currently 70,000 people employed in the low carbon economy and this could rise to 130,000 by 2020, over 5% of workforce. Offshore wind energy alone could bring an estimated £30bn of inward investment, and up to 20,000 jobs. Why Renewables

5. Targets 100% of net electricity demand from renewables by 2020, with interim targets of meeting 31% by 2011 and 50% by 2015 Helping to deliver the EU renewable energy target for the UK (15%) 30% of all energy from renewables by 2020

6. Current renewable electricity generation

8. Assumptions Vast majority of target will be met by hydro and onshore wind Offshore wind potential will take us to 100% Projections are based on historical deployment trends Availability of grid and a market Efficacy of energy efficiency policy and measures

9. Key delivery challenges Scale – of new generation needed by 2020 Investment hiatus: the replacement of the Renewables Obligation (RO) in Scotland with EMR Transition period: from 2013 to 2017 - important time for 100% target. CCS and storage: security of supply with intermittent renewables.

10. Progress to date Met 36% of electricity demand in 2011 – exceeding target of 31% and 39% in 2012 Contributed almost 40% of 2011 UK renewables output Renewable energy industry supports over 11,000 jobs in Scotland

11. Keeping the lights on: Electricity Generation Policy Statement Shows that the 100% target is possible Does NOT mean Scotland will be 100% dependent on renewables generation Renewables will form part of a wider, balanced electricity mix, with thermal generation continuing to play an important role. Confirms SG policy to phase out nuclear

12. Keeping the lights on 12% reduction in energy demand by 2020 (2007 base) Energy efficiency has the potential to cut £8.5bn from household energy bills by 2050, and provide thousands of jobs. Scotland is and will be an exporter/importer of electricity Improved planning and consent procedures Skills development Innovation will drive down capital and operational costs