Chamber
Meeting of the Parliament 18 June 2013
18 Jun 2013 · S4 · Meeting of the Parliament
Item of business
Hydro Power
Tom Johnston brought about his hydro power revolution as a result of the particular conditions of total war, when landlord opposition could be waved aside in the national interest. Members who read the House of Lords Hansard from that period will see that opposition. No one has quoted that yet, but I remember it well as I studied that period when I was a history student.
Johnston had the approval of the Prime Minister, Winston Churchill, and pressed home his advantage to create 54 main power stations by 1965 and 78 dams. At the peak, 12,000 workers were employed in their construction. However, in the 1950s, a Tory Government returned and duly set up a select committee on the issue, because it deplored the social clause in the North of Scotland Hydro-Electric Board’s constitution as an interference in the market.
The Government latched on to an obscure report by an economist from the University of Aberdeen that used complicated and biased means to prove that the relative cost of hydro was far greater than that of nuclear power. Indeed, Denys Munby’s paper claimed that nuclear power would make hydroelectric stations
“built at a very great capital cost ... as obsolete as the horse and carriage in fifty years time.”
Of course, he—like many people at that time—did not know much about the implications and environmental impact of nuclear power.
The North of Scotland Hydro-Electric Board pressed on with its plans, but it was stopped in its tracks in 1960, when the Tory Secretary of State for Scotland, John Maclay, took the whole electricity strategy to a Cabinet economic sub-committee. The committee stopped the River Nevis scheme, which would have extracted water and sent it to be stored at a power station near Fort William.
The Nevis scheme offers an example of an early campaign on landscape led by the National Trust for Scotland. Bill Murray, who wrote the book “Highland Landscape” for the NTS in 1962, called the Nevis gorge
“one of the principal scenic wonders of Scotland.”
The issue of appropriate development, with which we are very familiar today, was broached at that time.
The Mackenzie committee proposed that there should be one electricity board for Scotland and that the North of Scotland Hydro-Electric Board should go. However, a campaign in the Highlands raised the fiery cross via the electricity consultative council for the area, and people gathered round to save the board for another day.
A Labour Government was then elected, but it did not promote hydro. It called a public inquiry into the Fada-Fionn scheme in Wester Ross, and the Treasury stacked the figures by proposing an 8 per cent return on capital, so the inquiry found against the scheme. There was not a lot of opposition to the scheme from mountaineers or fishing interests at that time, although such views might have changed today.
Harold Wilson came in on the “white heat” of technology. He did not go back to the Johnston policy; instead, he supported nuclear power.
I come to the present. This weekend’s Herald magazine, New Era, quoted no figures from the Department of Energy and Climate Change in London for the cost per megawatt of installed power from hydro. It quoted figures for other sources such as onshore wind, nuclear and so on, but one cannot see where hydro fits into the picture. That is probably because there is only 130MW of capacity installed in England, whereas more than 1,300MW is installed in Scotland, so hydro is not a priority down south.
However, SSE has kept the faith and has refurbished dams and power plants. It has also created the Glendoe system, which we visited in 2009, and which—despite the problems with its tunnel—has produced electricity since 2012 as a major scheme in the Highlands. It is vital in helping the Scottish Government to meet its target for 100 per cent of energy from renewables by 2020, and it is a partner for intermittent wave and wind power. It is also a key part of an integrated electricity policy that suits Scotland’s needs.
There has been much talk about smaller schemes. There are a large number of them, many of which are in my constituency. A press release that was issued today said that one of the turbines in the Maldie Burn scheme, which the Duke of Westminster created, will run from this month. In that scheme, 2MW is used to power his lodge at Achfary and go on to the grid.
Unfortunately, however, only £80,000 in community benefit will come from the scheme over its life. We have to ask whether everyone involved in hydro schemes—as well as those involved in wind, wave and tidal schemes—should pay at least £5,000 per megawatt installed.
In my area, close to where I live, the Black Rock gorge scheme on Munro Ferguson’s Novar estate is nearly complete at 3.5MW. The Glasa scheme in Kildermorie—which the minister mentioned—is also close by, and has a capacity of 7MW. The numbers are adding up.
The Assynt Crofters Trust community scheme has had to overcome problems in respect of the great northern diver and other SNH concerns about wildlife, but it is now up and running for the community. The Lael Forest community hydro project near Ullapool is proposed to operate in places where old schemes had existed, and a public ballot will decide later this week whether that should go ahead for the community’s benefit.
The national problems of uncertainty about FIT from DECC show that capacity-based degression decreases the incentive to invest in hydro and many other schemes. Another uncertainty is that a pumped-storage tariff has not yet been created. We should recognise that it is entirely possible in this day and age to see the certainty that has been created by sticking to 1 ROC for hydro development in Scotland, not 0.7 ROCs, as a result of the Scottish Government’s far-sighted belief in an integrated policy.
“The Hydro” by Peter Payne quoted Sir Christopher Hinton as saying, in opening the Glenmoriston scheme in 1958:
“In 20, 30 and 50 years hence people... will say how tremendously fortunate it was that the water power development took place when it did.”
That was true then and it is very true today.
15:10
Johnston had the approval of the Prime Minister, Winston Churchill, and pressed home his advantage to create 54 main power stations by 1965 and 78 dams. At the peak, 12,000 workers were employed in their construction. However, in the 1950s, a Tory Government returned and duly set up a select committee on the issue, because it deplored the social clause in the North of Scotland Hydro-Electric Board’s constitution as an interference in the market.
The Government latched on to an obscure report by an economist from the University of Aberdeen that used complicated and biased means to prove that the relative cost of hydro was far greater than that of nuclear power. Indeed, Denys Munby’s paper claimed that nuclear power would make hydroelectric stations
“built at a very great capital cost ... as obsolete as the horse and carriage in fifty years time.”
Of course, he—like many people at that time—did not know much about the implications and environmental impact of nuclear power.
The North of Scotland Hydro-Electric Board pressed on with its plans, but it was stopped in its tracks in 1960, when the Tory Secretary of State for Scotland, John Maclay, took the whole electricity strategy to a Cabinet economic sub-committee. The committee stopped the River Nevis scheme, which would have extracted water and sent it to be stored at a power station near Fort William.
The Nevis scheme offers an example of an early campaign on landscape led by the National Trust for Scotland. Bill Murray, who wrote the book “Highland Landscape” for the NTS in 1962, called the Nevis gorge
“one of the principal scenic wonders of Scotland.”
The issue of appropriate development, with which we are very familiar today, was broached at that time.
The Mackenzie committee proposed that there should be one electricity board for Scotland and that the North of Scotland Hydro-Electric Board should go. However, a campaign in the Highlands raised the fiery cross via the electricity consultative council for the area, and people gathered round to save the board for another day.
A Labour Government was then elected, but it did not promote hydro. It called a public inquiry into the Fada-Fionn scheme in Wester Ross, and the Treasury stacked the figures by proposing an 8 per cent return on capital, so the inquiry found against the scheme. There was not a lot of opposition to the scheme from mountaineers or fishing interests at that time, although such views might have changed today.
Harold Wilson came in on the “white heat” of technology. He did not go back to the Johnston policy; instead, he supported nuclear power.
I come to the present. This weekend’s Herald magazine, New Era, quoted no figures from the Department of Energy and Climate Change in London for the cost per megawatt of installed power from hydro. It quoted figures for other sources such as onshore wind, nuclear and so on, but one cannot see where hydro fits into the picture. That is probably because there is only 130MW of capacity installed in England, whereas more than 1,300MW is installed in Scotland, so hydro is not a priority down south.
However, SSE has kept the faith and has refurbished dams and power plants. It has also created the Glendoe system, which we visited in 2009, and which—despite the problems with its tunnel—has produced electricity since 2012 as a major scheme in the Highlands. It is vital in helping the Scottish Government to meet its target for 100 per cent of energy from renewables by 2020, and it is a partner for intermittent wave and wind power. It is also a key part of an integrated electricity policy that suits Scotland’s needs.
There has been much talk about smaller schemes. There are a large number of them, many of which are in my constituency. A press release that was issued today said that one of the turbines in the Maldie Burn scheme, which the Duke of Westminster created, will run from this month. In that scheme, 2MW is used to power his lodge at Achfary and go on to the grid.
Unfortunately, however, only £80,000 in community benefit will come from the scheme over its life. We have to ask whether everyone involved in hydro schemes—as well as those involved in wind, wave and tidal schemes—should pay at least £5,000 per megawatt installed.
In my area, close to where I live, the Black Rock gorge scheme on Munro Ferguson’s Novar estate is nearly complete at 3.5MW. The Glasa scheme in Kildermorie—which the minister mentioned—is also close by, and has a capacity of 7MW. The numbers are adding up.
The Assynt Crofters Trust community scheme has had to overcome problems in respect of the great northern diver and other SNH concerns about wildlife, but it is now up and running for the community. The Lael Forest community hydro project near Ullapool is proposed to operate in places where old schemes had existed, and a public ballot will decide later this week whether that should go ahead for the community’s benefit.
The national problems of uncertainty about FIT from DECC show that capacity-based degression decreases the incentive to invest in hydro and many other schemes. Another uncertainty is that a pumped-storage tariff has not yet been created. We should recognise that it is entirely possible in this day and age to see the certainty that has been created by sticking to 1 ROC for hydro development in Scotland, not 0.7 ROCs, as a result of the Scottish Government’s far-sighted belief in an integrated policy.
“The Hydro” by Peter Payne quoted Sir Christopher Hinton as saying, in opening the Glenmoriston scheme in 1958:
“In 20, 30 and 50 years hence people... will say how tremendously fortunate it was that the water power development took place when it did.”
That was true then and it is very true today.
15:10
In the same item of business
The Deputy Presiding Officer (John Scott)
Con
The next item of business is a debate on motion S4M-07024, in the name of Fergus Ewing, on hydro power in Scotland.You have a generous 14 minutes, minister.1...
The Minister for Energy, Enterprise and Tourism (Fergus Ewing)
SNP
Thank you, Presiding Officer. I will revert from fortissimo to pianoforte in my tone.I very much welcome the opportunity to discuss the development of hydro ...
Mary Scanlon (Highlands and Islands) (Con)
Con
I fully support the expansion of hydro schemes. Hydro is a wonderful industrial success. Will the minister ensure that it is also an environmental success, i...
Fergus Ewing
SNP
I agree that environmental issues are important and must be more seriously taken into account.Mary Scanlon has somewhat spoiled my peroration, such as it was...
The Deputy Presiding Officer
Con
I call Ken Macintosh, who has a very generous 11 minutes.14:29
Ken Macintosh (Eastwood) (Lab)
Lab
Including the minister’s four unused minutes, Presiding Officer?I suspect that many members feel, as I do, a sense of pride and achievement in Scotland’s hyd...
The Deputy Presiding Officer
Con
I call Mary Scanlon, who has a generous seven minutes.14:40
Mary Scanlon (Highlands and Islands) (Con)
Con
We are delighted to contribute to this debate on hydro power in Scotland in recognition of the celebration of the 70th anniversary of the Hydro-Electric Deve...
Richard Lyle (Central Scotland) (SNP)
SNP
Hear, hear.
Mary Scanlon
Con
I thank Richard Lyle for his comments. He was very supportive in my recent members’ business debate on the subject.For all that—and all that—two contractors ...
Mike MacKenzie (Highlands and Islands) (SNP)
SNP
Hydro power is perhaps the least contentious of our renewables technologies, and the lack of amendments to the motion might be evidence of that. However, tha...
Murdo Fraser (Mid Scotland and Fife) (Con)
Con
Does Mr MacKenzie remember those days?
Mike MacKenzie
SNP
I am grateful to Mr Fraser for introducing a note of humour into the debate.It is hard now to relate to those concerns of more than a century ago, and it is ...
Margaret McDougall (West Scotland) (Lab)
Lab
I have to say that until now I have enjoyed the history lesson that has been part of the debate.It is right that we celebrate all that has been achieved in g...
Mike MacKenzie
SNP
Does the member accept that it is the UK Government’s failure to upgrade our grid quickly enough that is limiting our ability to decarbonise the energy suppl...
Margaret McDougall
Lab
No. I will not turn around and blame the UK Government; there are things that we can do in Scotland.Supplying 100 per cent of Scotland’s energy from renewabl...
Fergus Ewing
SNP
I agree with much of what the member has said. She said that she would like the Scottish Government to do more to strengthen the grid. Given that there are p...
Margaret McDougall
Lab
Perhaps I can explain that as I go on.I fully appreciate that the Scottish Government is not solely responsible for the implementation of new hydro power sta...
Rob Gibson (Caithness, Sutherland and Ross) (SNP)
SNP
Tom Johnston brought about his hydro power revolution as a result of the particular conditions of total war, when landlord opposition could be waved aside in...
Claire Baker (Mid Scotland and Fife) (Lab)
Lab
I am pleased to take part in the debate. Hydro power provides energy and jobs to many rural communities, and it can also play a significant part in Scotland ...
Fergus Ewing
SNP
I entirely agree that we want to do everything practical and sensible that we can to encourage communities to develop their own schemes and, when possible, t...
Claire Baker
Lab
Those are welcome comments from the minister.When I speak to people in the sector, the feeling seems to be that there is quite a gap between a community that...
Stuart McMillan (West Scotland) (SNP)
SNP
This is a timely debate that examines the past, present and future of one of Scotland’s most valuable assets—a source of renewable energy that can help to co...
Liam McArthur (Orkney Islands) (LD)
LD
As Margaret McDougall rightly said, we have already had a historical tour de force. I particularly commend Rob Gibson’s speech, in that respect.On the 70th a...
Mike MacKenzie
SNP
As the member for Orkney, surely Mr McArthur is frustrated with the UK Government for not getting on and putting in place the interconnector to Orkney so tha...
Liam McArthur
LD
I certainly share the frustrations of those who are looking to get on and deliver renewables, not just in Orkney but in the other island groups, but I do not...
Stuart McMillan
SNP
Will Liam McArthur give way?
Liam McArthur
LD
I will make some progress, but will come back to Mr McMillan, if I can.There seems to be a case for looking again at how degression will apply in relation to...
Stewart Stevenson (Banffshire and Buchan Coast) (SNP)
SNP
Water is important to us. That is a self-evident truth, not least because each and every one of us is made up of about 80 per cent water. Without water, ther...
The Deputy Presiding Officer (Elaine Smith)
Lab
Mr Stevenson, will you begin to conclude, please?