Hansard

I am joined by Nicola Shiels, Neal Rafferty and Sue Kearns. Thank you for this chance to make some opening comments. I am well aware that the committee is familiar with the renewables obligation, as I have sat before the committee and discussed the matter every year since 2007. In doing so for the last time, I thank the committee for its courtesy and for the quality of its engagement on these occasions.Members will know that the obligation is a fundamental driver behind each decision to invest in renewable electricity-generating capacity. It was introduced back in 2002. In the seven years up to 2009, renewable electricity generation across Scotland has more than doubled. Indeed, the figures for 2009 demonstrate that renewable generation in Scotland from wind and thermal sources such as biomass and renewable waste outstripped generation from natural-flow hydroelectric stations for the first time ever.That trend will continue over the next 10 years. We expect more and more generation to come from offshore wind, from wave power and from tidal stream. This energy comes from sources where Scotland has a huge competitive advantage, and it can create world-leading industries. It is therefore vital that we maintain the legislation as fit for purpose and the ability to continue to attract investment in new technologies and developments across Scotland in a way that is cost effective and sustainable.The amendments that are contained in the order are designed to do just that. In proposing that offshore wind generators that accredit after 31 March 2011 should be able to register their turbines in phases, we are acknowledging the lengthy period over which such very large developments will often be constructed, and ensuring that support for those projects is accessible and is delivered in a way that is consistent with that reality.Offshore wind generators will be able to register five phases of turbines over a maximum period of five years. The first phase should include a minimum number of turbines equivalent to 20 per cent of the proposed total installed capacity of the development. Over time, we believe that that flexibility will have a positive effect on the development of further offshore wind capacity in Scottish waters.Our consultation also found a great deal of support for extending the principle in the future, particularly as wave and tidal projects begin to come forward at scale. We have also agreed, in light of the outcome to our consultation, to extend the principle of grandfathering to stations using biomass and waste. As members will know, grandfathering is the principle that protects the level of renewables obligation certificates banding at the point at which a specific investment is made. Grandfathering means that stations that are financed and commissioned on the basis of a certain number of ROCs per megawatt hour will not have that support reduced as a result of a future review. That mirrors the position across the rest of the UK and takes into account the evidence from stakeholders that grandfathering will protect investment, particularly in small-scale projects.More widely, we have also announced an intention to conduct in the coming year a broad review of biomass support through the obligation. Our starting point for that is a desire to make the support consistent with the Government’s policy aim to see biomass generating plant designed at a scale that is consistent with the most efficient use of what is a limited resource. We want an approach that will make a vital contribution to meeting our ambitious renewable heat targets.The order also introduces new sustainability criteria for biomass and biogas generation. Mandatory reporting against those criteria will take effect from April this year and will be linked to support from April 2013. The new criteria impose a carbon dioxide emissions ceiling for biomass generators and direct land use criteria that are consistent with the relevant European Commission renewable energy directive. The criteria and their continued development will be informed by the work of the UK biomass and biogas sustainability implementation group, which involves direct input from Scotland and Scottish stakeholders.The order also complies with the renewable energy directive through its introduction of mandatory sustainability criteria for bioliquids. In order to qualify for ROCs, generators using bioliquids will need to comply with those criteria from 1 April this year. The order now extends, again in compliance with the directive, to biodiesel that is partially derived from fossil fuel, although ROCs will only be eligible against the biomass proportion of the fuel’s energy content.The changes mentioned thus far are being implemented in a uniform manner across all the UK obligations, but we have one more that is unique to Scotland: an amendment to our enhanced wave and tidal definitions that is designed to enable projects to receive capital grant support as well as our higher ROC band when appropriate. The change has been agreed by the European Commission and warmly welcomed by the vast majority of our stakeholders. The changes will improve the efficiency and sustainability of the obligation. They are designed to maintain confidence in the system—confidence that is more important than ever before. Before I formally move the motion on the order, I am happy to respond to any questions that the committee may have.