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Meeting of the Parliament 29 March 2012

29 Mar 2012 · S4 · Meeting of the Parliament

Item of business

Local Energy Companies

Scanlon, Mary Con Highlands and Islands Watch on SPTV

I, too, thank the Scottish Green Party for bringing the debate to the Parliament. I agree with most of Patrick Harvie’s motion—I am sure that he can guess the two or three lines with which I disagree.

There is no doubt that much can be gained from local energy companies and that the topic merits further discussion and consideration. We can learn from experience, as highlighted by Kevin Stewart. I will highlight a good experience and a bad experience. I find quite exciting the enhanced support that is now in place for local energy companies that the Government’s amendment highlights. I noted the minister’s comments about local authority energy companies.

As well as the private, public and third sectors, co-operatives and communities can work together to produce clean energy. I will give two examples: the Isle of Eigg, which is a blueprint for success, and the Caithness Heat and Power project, which is run by Highland Council but which cannot be deemed a success in any form.

Highland Council proposed to tackle fuel poverty in Wick by forming a new limited company—Caithness Heat and Power—to establish a woodchip scheme to provide electricity and cheaper heating for tenants. Those aims were worthy. The scheme started in Pulteneytown in 2004 to provide a renewable heating system for up to 500 houses.

There is no doubting the good intentions behind the project. However, after several years, many problems and an Accounts Commission investigation, it was found that there was a lack of appropriate risk management, and that Highland Council had faced many other problems, from the project’s inception in 2002 through to its delivery.

Caithness Heat and Power was abandoned in 2008. At the time, it was said that

“the technology originally chosen for the project is not capable of reliably and economically fulfilling its objectives.”

Although the project cost £14.65 million, the company was transferred in December of last year for £1. Caithness Heat and Power experienced technological and financial problems, with Highland Council having to pay back a £2.9 million grant and also having to pay to reconvert the 247 properties that had been modified at a cost of £2.3 million. Highland Council tried to recoup money from the £14.65 million project by selling off 14 lots online last year, including a boiler and a woodchip drier.

The council is still pursing £152,000 of outstanding electricity bills, but the system’s design prevents effective disconnection of individual customers without affecting others. A local councillor stated last week in the John O’Groat Journal that the £152,000

“was not run up as result of people in fuel poverty struggling to pay their bills but by opportunists taking advantage of a flawed setup.”

I highlight the project because, as others have said, we have to learn from experience.

The community on the Isle of Eigg had the opposite experience and its scheme is undoubtedly an outstanding success. Diesel generators provided electricity to the community for decades, but Eigg Electric can now provide 24-hour power through three hydroelectric generators that produce energy from water as well as four small wind turbines and solar panels.

An essential consideration of the design and development of the project was that it should not impact on the natural beauty of the island. The cable routes, both grid and domestic, are buried—unlike the Beauly to Denny power line.

The total generation capacity of the system is about 164kW at any time. The system is designed to provide 95 per cent of the power consumed on the island and it allows for population growth. Residents of Eigg can use only what they produce and, to ensure that no one goes short, each house has a maximum use limit of 5kW and each business a maximum use limit of 10kW at any one time. People spread their use throughout the day, the system is simple and meters are used to display electricity usage at all times, with surplus power distributed to community halls.

Eigg is an excellent example of full support being given, altruism and partnership in the community as everybody pulls together for the common good.

I will cover the other points when I sum up.

10:53

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Meeting of the Parliament 29 March 2012

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