Meeting of the Parliament (Hybrid) 03 December 2020
Tackling our need to decarbonise heating systems must be a major priority for us all. To date, we have been fairly successful in decarbonising our electricity needs through wind farms and other renewable sources, but a comprehensive solution to decarbonising our heating has been more elusive.
We are facing a global climate emergency and we need to think of innovative ways to reduce the emissions that are associated with heating our homes. Heat networks will have a key role to play in supplying Scotland’s homes with heat in the future, and that is why we need to focus on unlocking the potential of the sector and supporting its growth. Heat networks have a huge potential to reduce our carbon emissions and provide a more efficient and environmentally friendly way of heating our homes. I was happy to take part in the Economy, Energy and Fair Work Committee’s evidence taking in this key area.
The subject is very close to my heart, as I have long advocated making better use of our natural resources to provide the energy that is needed to run our heating systems. I give my constituency of Midlothian North and Musselburgh a quick plug. We have an abundance of flooded mine shafts, which creates the opportunity to develop geothermal energy from the water that they contain and to provide my constituency with jobs and relatively cheap heating sources.
I would like to highlight one or two points that arose from the evidence that the committee gathered. First, given the landscape around the opportunity to develop local heat networks, we need to consider carefully the likelihood that a variety of different designs and technologies will arise, depending on the heat source and the mode of extraction. It is vital that all those designs and technologies are capable of talking to one another and integrating at a national level. Although we are talking about “local” heat networks, it is important that they do not operate in isolation.
The committee had concerns about the regulatory framework and we need to consider whether there needs to be a Scottish regulator or whether Ofgem could be modified to take up the task—that issue is still to be resolved.
Companies investing in local heat networks would enjoy a virtual monopoly that might last as long as 20 or even 40 years as they recovered their costs. I emphasise the importance to consumers of a monitoring or price-matching system to ensure value for money and prevent excessive price hikes.
Fuel poverty is a real concern and is likely to feature more prominently, given our current economic situation. Evidence from the BRIA shows that heat networks can lead to fuel savings of up to 36 per cent. There are already many Scottish Government investments in the area, such as the heat networks early adopter challenge fund, and we need to ensure that such funds are utilised to support the transition to achieving net zero emissions by 2040.
I was pleased to hear the minister’s commitment that local councils and communities would be completely involved in the development of heat networks. Given the likely impact on local employment, the environment and energy supplies, there needs to be solid local buy-in for projects to be a success—and I am not talking about the contrived local consultations that have been the norm in some places; we need consultations that actively promote participation.
I foresee difficulties in implementing local heat networks where multiple landowners and stakeholders with conflicting interests are involved. The possibility of compulsion exists, but I am ambivalent about whether that is the best route to take in the interests of the wider community. There is an attraction in resolving issues in that way, but it can also create hostility and problems among local residents, so a form of statutory negotiation—with compulsion as the back-up position—might be the best solution. We might need to consider the all-too-common situation of there being no clear ownership of a necessary piece of land—compulsory wayleaves or purchase are obvious solutions.
Overall, the committee carried out a thorough and comprehensive investigation into local heat networks, which is particularly commendable given the disruptions that have been caused by Covid-19 and its fallout. The Scottish Government has been keen to review all the points that have been raised with it, which will result in effective and workable legislation, enabling Scotland to take the lead in developing the abundance of opportunity that is available.
I am happy to support the bill at stage 1.
17:16