Hansard

I am sorry, I am really pressed for time.

It is regrettable that the UK Government does not appear to have learned the lessons from wind power, when it missed the opportunity to establish the UK as the world-leading centre for renewable energy technology and allowed our competitors to dominate. That was a huge own goal for the UK. The Scottish Government is absolutely committed to helping us to maintain our global lead in marine energy. The sector needs support so that it can build on the success of the first projects to drive down the cost of energy. We are determined to do all that we can to ensure that the tidal energy sector, which has potential to generate sustainable jobs, is taken forward in Scotland. We again call for a new approach to the UK’s relationship with Scotland on energy matters, with decisions on energy policy being made following a process of consultation and agreement with the Scottish Government, as set out in the Scotland Act 2016. I genuinely want to work with my counterparts to secure even more success for the sector if we can do so.

Onshore wind is a sector that has been thoroughly overlooked in the auction process. It is an absolute priority of ours to find a route to market for onshore wind. It is our cheapest renewable technology at scale and it makes a substantial contribution to our renewable energy targets and to reducing carbon emissions. At this time, the UK Government is not being clear on its stance on a price stabilisation mechanism, and the industry is in effect immobilised, with only legacy projects from the era of renewable obligations certificates and feed-in tariffs being constructed at this time. We need clarity soon, or the industry will go elsewhere. That could have a serious impact on our emissions reduction targets, on jobs and on communities. The First Minister and I have asked the UK Government’s Department for Business, Energy and Industrial Strategy to consider Scotland’s onshore wind sector as part of its forthcoming industrial strategy.

Pumped-storage hydro has the potential to play a significant role in Scotland’s energy future, and in the future of these islands as a whole. The provision of greater energy system flexibility is widely regarded as a key issue for energy policy, and a range of technologies and approaches will play a role in the smart energy system. That is recognised by the newly formed pumped-storage hydro working group.

In order to ensure that pumped-storage hydro—a proven, highly flexible and large-scale option—is considered fully as policies and support frameworks are developed, the group commissioned an independent report on the technology. That report has now been published and provides a clear summary of the many benefits that pumped-storage hydro provides today and could offer in the future. It sets out the significant investment and market challenges that are associated with delivering new projects, and emphasises the need to explore how those barriers can be removed.

I wrote to the UK Government to commend the report, and to ask it to engage with the industry and the Scottish Government to explore how we can work together to realise the full potential of pumped-storage hydro. I will continue to pursue that matter with the UK Government.

Scotland’s renewables sector has come a long way. The more mature technologies, such as onshore wind and solar, are fast becoming some of the cheapest forms of power generation and are attractive for deployment in relation to power purchase agreements, for example. It makes no sense for the UK Government to exclude those readily available forms of clean energy from having a viable route to selling their electricity to the market when they could make such an important contribution to meeting future climate change targets. If the UK Government wants to keep bills down for consumers—an aim that we share—why overlook the lowest-cost methods of generating green energy?

Earlier, I mentioned the MeyGen tidal energy project in the Pentland Firth. The eyes of the world are on that innovative scheme, which is a flagship project for the whole tidal industry. The UK Government invested alongside the Scottish Government in the first phase of that groundbreaking project. It is a superb example of what can be done when the UK and Scottish Governments work together to provide a lasting benefit for the people of Scotland and to tackle climate change. However, now that the developer is on the cusp of reaching financial close on the next phase of the project, BEIS has decided that offering a ring-fenced budget for such projects,

“does not represent good value for money for consumers”.

I am sure that members will agree that that is not only irrational but short-sighted. If the UK Government wants the marine energy sector to achieve cost reductions, placing obstacles in its path is hardly the way to do it.

I move,

That the Parliament notes the UK Government’s announcement on the second renewable energy Contracts for Difference (CfD) allocation round; acknowledges the latest round as a potential opportunity for Scottish offshore wind farms to compete for contracts; notes its strong concern that the UK Government has effectively excluded island wind projects from this CfD allocation, despite repeated assurances to the contrary following a 2013 consultation; further notes with concern the UK Government’s decision not to provide a minimum allocation for Scotland’s world-leading marine energy technologies, therefore overlooking their potential to supply a substantial contribution to future energy needs and to develop a domestic engineering base; considers that the UK Government has, to date, failed to respond positively to calls from the Scottish Government and industry for a “route to market” to unlock investment in consented pumped hydro storage projects; notes the Scottish Government’s efforts to coordinate development of the offshore wind supply chain, and supports the Scottish Government in its efforts to work with the renewable energy industry to identify the most appropriate means by which it can use those powers at its disposal to support the development of the renewable energy sector, across a range of technologies, and to ensure that the sector has the financial and political support that it requires.