Hansard

I start by acknowledging that I am in receipt of feed-in tariff payments and renewable heat incentive scheme payments.

I warmly welcome the Economy, Energy and Fair Work Committee’s findings and recommendations. I know that the inquiry has been a considerable undertaking for the committee and I congratulate Gordon Lindhurst and his colleagues on their efforts, not least in ensuring that a visit to Orkney took place as part of the evidence-gathering exercise. I understand that the visit took place in February, so it was not like ministers’ fair-weather summer tours in recent years. Andy Wightman said that the visit was inspiring, and it is clear that it profoundly influenced the committee’s findings.

Given the brief time available to me in the debate and Mr Wightman’s spoiler alert, I will focus my remarks on what is going on in Orkney that chimes with the committee’s findings, not least that on the need to draw on examples of best practice from around the country.

The committee makes clear the importance of the Scottish Government adopting a long-term strategic framework that covers all aspects of energy and takes a whole-systems approach. In that respect, Orkney offers some timely lessons and can help lead the way as we strive to achieve our climate change ambitions.

As the committee heard from the Association of Decentralised Energy in its written evidence,

“Smart, decentralised energy systems will be absolutely crucial to achieving net zero by 2045.”

The association explained:

“In a net zero electricity system, most of that large centralised plant will have been replaced with variable renewables ... As a result, we will depend far more on small-scale peaking plant, storage, interconnectors and demand-side response to balance energy and maintain the operability of our networks.”

In that context, the work that is being undertaken in Orkney through the ReFLEX and SMILE project is highly relevant. The project will look to connect electricity, transport and heat networks in an overarching system, using advanced software to balance supply and demand. That work draws on recent experience in Orkney and strong local buy-in. It aims to deliver affordable locally generated energy and decarbonise the islands by 2030, further burnishing Orkney’s reputation as a leader in innovation, development and applied solutions.

I give credit where it is due, as the project is supported by the UK Government’s industrial strategy challenge fund, although that does not excuse the wider lack of support and direction at a UK level. The project is also an example of how innovation often emerges through adversity. Despite Orkney having significant renewable energy resources and producing 130 per cent of its electricity needs through existing installed renewable generation, the local grid is constrained, resulting in significant curtailment. That limits efficiency but also the capacity that is needed to meet inevitable increases in demand to support electric vehicles and electrified heating systems.

Given that Orkney has some of the highest energy prices and levels of fuel poverty in the country, the ReFLEX and SMILE project is about addressing more than just environmental challenges, and it does not diminish the urgent need to secure a long-awaited interconnector for the islands, to which Rhoda Grant referred.

The project will last for three years and will include the installation and operation of technologies, including hydrogen fuel cells for electricity and heat; domestic and commercial energy storage; vehicle-to-grid charging infrastructure; ground-source heat pump systems; building management systems; and integrated grid-smart community-led transport systems.

A new local energy company will be established to offer advice to consumers and businesses on their energy needs, as well as providing affordable leasing options for new domestic and commercial batteries, electric vehicles and charging points in Orkney, with reduced up-front costs for users. I just hope that the Government’s new ChargePlace Scotland contract is up to the task—I certainly echo Andy Wightman’s concerns.

Orkney is an ideal location for demonstrating how self-contained smart energy networks can work, connecting hydrogen storage, huge batteries and electric ferries and cars with clever software to remove fossil fuels from an entire energy system and reduce costs to consumers. There is no reason why the lessons learned in Orkney cannot inform decisions made elsewhere in Scotland, as well as the Government’s long-term strategic framework. Islanders and the Scottish Liberal Democrats are up for meeting that challenge. I look forward to working with others to make sure that it happens.