This review of Scottish Government activities and international practices presents an overview of government initiatives that relate to energy productivity, and presents case studies of changes in the industrial and commercial sectors.

The findings and conclusions are based on reviews of policies and regulations, interviews with key stakeholders, reviews of energy and economic statistics and reviews of documentation from specific industries and commercial activities. 

The report suggests that while much has been achieved in Scotland in recent years, there is much more that could be done should energy productivity be deemed to be a governance priority. The governance measures and case studies presented throughout point to several distinctive areas of work that would support this aim. 

Energy productivity broadens the framing and thinking associated with longstanding areas of government policy in asking what associated measurable characteristics should and could be accounted for. This would involve rethinking current approaches to energy efficiency, renewable energy and energy saving advice as integrated elements of a broader governance agenda on energy productivity. 

The purpose of this study is to identify any differences in the costs faced by community and commercial renewable energy projects in Scotland.

The Scottish Government has expressed a commitment to support the development of community renewable energy, including a target to establish 500 megawatts of community and locally-owned renewable energy by 2020. Given this aspiration, it is important to understand any cost barriers faced by community projects that are not faced by equivalent commercial projects.

The study compares the costs and cost factors faced throughout the lifecycle of projects under three different ownership categories: commercial, community and commercial-community partnerships.

Key findings:

  • Community and commercial renewable energy sectors have evolved separately to some extent and have therefore faced different cost factors.
  • This has resulted in costs that are more variable, with some facing significantly higher costs than others.
  • Costs have become less variable over time and have decreased over the last decade. The aggregate data showed that there is no statistical difference in the costs of more recently developed community owned projects.
  • While communities spend more in the pre-planning stages, this is not generally reflected in overall costs, pre-planning costs typically make up a minor proportion of total development costs (e.g. 50% of capital costs incurred through technology acquisition.
  • Pre-planning barriers represent both costs and risks that may be addressed through policy measures. It is important to note that communities face a much higher risk of failure during this time.

Wind energy is playing an essential role in meeting the Scottish Government’s ambitions to generate the equivalent of 100% of Scotland’s electricity consumption from renewable energy sources by 2020. This target aims to reduce carbon emissions and ensure secure, cost-effective energy supply.

To meet these objectives, wind energy must be able to provide an energy supply that is less carbon intensive over its lifetime than the technologies it displaces. It must also be able to supply energy to consumers at an affordable price.

This review aims to enable Scottish policy makers and other interested parties to better understand the range of academic estimates of the life cycle costs and emissions of wind energy, and the evidence on which these estimates are based.

Community investment in commercial energy projects has the potential for far-reaching and positive impacts.  This research has demonstrated that there is much interest in, and enthusiasm for, increasing community investment in commercial energy projects in Scotland. 

The report presents an analysis of the factors which support and limit the ability of communities to invest in commercial renewable energy schemes, and makes recommendations for action based on domestic and international evidence.  It concludes that there is significant potential for increased community investment in commercial energy schemes, given the appropriate support, funding and advice.

Useful links

Scotland’s energy system is undergoing a major transformation in response to pressures to deliver clean, affordable and secure supplies of energy, in conjunction with wider economic and social benefits, amid rapid changes in global energy markets and technologies. Energy storage is likely to be an increasingly important part of this transition. In particular, there is a need to understand the potential for storage integration across the whole energy system (power, heat and mobility).

ClimateXChange commissioned two reports to review the state of technological and market development in the context of Scotland’s energy policy ambitions. They cover thermal energy storage and electrical energy storage respectively.

Insights from each of these reports are presented in the Energy Storage in Scotland Summary to help support thinking on integrated energy policy.

Unconventional gas is a growing industry worldwide and there is interest in developing the industry (particularly coal bed methane and shale gas) in Scotland. However, the potential climate impacts associated with the exploration and extraction of unconventional gas in Scotland have been unclear.

Given the Scottish Government’s ambitions for a low carbon economy, it is important to understand the potential GHG emissions associated with unconventional gas extraction, and  what could be done to mitigate or reduce the risk of any such emissions.

SEPA and the Scottish Government asked ClimateXChange to undertake a desk-based study of the estimated greenhouse gas (GHG) emissions associated with the extraction of onshore unconventional gas in Scotland, from exploration to the point of fuel production.

This study finds that the key factors influencing the lifecycle emissions of unconventional gas extraction in Scotland are:

  • Methane that could escape when the borehole is being prepared for gas production, or servicing a borehole during production.
  • The impact of building associated infrastructure (such as drilling platforms, pipelines and roads) in areas with peat soil. This is because peat soil holds carbon which will be released when the soil is removed or drained when preparing the land for being built on.
  • Fugitive methane emissions that escape from valves and pipes, which are difficult to capture.

The study concludes that the life-cycle greenhouse gas emissions per unit of energy from unconventional gas extraction in Scotland are likely to be equivalent to those of conventional gas extraction in Europe, if best practice is followed and building on peat is avoided.

ClimateXChange invited policymakers, planners and regulators to the Edinburgh Centre for Carbon Innovation in November to discuss the challenges and opportunities posed by this developing industry.

The event updated Scottish decision makers on the significant research and policy developments in the field of unconventional gas extraction over the last year, including:

  • the release of the British Geological Survey’s assessment of shale resources in the Midland Valley of Scotland;
  • the release of the final report of the Scottish Government’s Independent Expert Scientific Panel on Unconventional Oil and Gas; and
  •  the opening of DECC’s 14th round of onshore oil and gas exploration licensing.

The event also launched CXC’s report on the lifecycle costs and emissions of unconventional gas extraction in Scotland, which will assist policymakers in assessing the climate impacts of unconventional gas extraction in Scotland, as well as opportunities to minimise these impacts. The report can be downloaded under ‘Related projects’ on the right hand side.

Participants from Scottish Government, Local Government, industry, academia and community groups  discussed the roles that policy, planning and regulation may play going forward.

Presentations from researchers, practitioners and policymakers can be downloaded using the links on the right hand side of this page.

Relevant publications referenced during the event:

Co-hosted by CXC, the UK Energy Research Centre and the Edinburgh Centre for Carbon Innovation , this event presented recent findings by leading UK energy researchers, and considered ongoing research, policy and strategy challenges. 

A panel of key Scottish policymakers was provided with the opportunity to respond to research findings, followed by open discussion.

Topics included:

  • Electricity generation technology costs
  • The future role of gas, including unconventional gas
  • Green finance and green Jobs
  • Decarbonising heat: networks, pumps or pipes?
  • The role of bioenergy in the UK
  • UK energy strategy under uncertainties

Dowload the presentations using the links on the right.

Changes in Scotland’s electricity sector will make an important contribution to meeting the Scottish Government’s economic and environmental goals.  To deliver these changes, policy makers will rely on accurate information about how electricity is generated, distributed and used.

However, sources of this information are currently held in various different places and are not always shared effectively with potential users.

This event was held by ClimateXChange and the Fraser of Allander Institute (University of Strathclyde) with the aim of improving the availability of electricity data in Scotland. In response to the needs identified by the Scottish Government Office of the Chief Economic Advisor, the event aimed to address limitations in the availability of electricity data by:

  • Identifying where relevant information is and who has access to it
  • Agreeing  on a process for bringing these sources of information together, allowing access by all potential users
  • Identifying gaps in current information
  • Agreeing on ways to close these information gaps

The event was attended by representatives from the Scottish Government, Scottish Renewables, the James Hutton Institute, ClimateXChange and the Fraser of Allander Institute.

For further information on this event, please see the presentation slides available for download on this page.

Scottish Planning Policy is a material consideration which helps planning authorities shape development plans and make decisions on wind farm developments. The potential visual impact of wind farms is an important factor in plan-making and in these decisions. In order to minimise the visual impact of wind farms, the current Scottish Planning Policy (2010) recommends that planning authorities apply a 2km separation distance between potential sites for onshore wind farms above 20MW and the edge of cities, towns and villages. The 2km separation has in general been well received by planning authorities, communities and developers but there is a lack of clarity about the evidence base for setting this specific distance.

ClimateXChange was asked by the Scottish Government to examine the evidence base for the separation distance. The project reviewed a wide range of relevant sources from over 15 countries. It found that most separation distances have been set based on noise, shadow flicker or health considerations, with none specifically relating to visual impacts. The study found no direct link between the evidence and the policy for a 2km separation distance.

 The size of onshore wind turbines has been increasing and is expected to increase in coming years. This study therefore also looked at whether there is evidence to support an increase in the 2km distance to reflect this trend. It found that, even in the few cases where visual impact had been a key consideration for setting separation distances, no reference had been made to turbine heights.

After reviewing UK and international literature on the use of separation distances for onshore wind farms, the study discusses ways that planning policy might be revised, for example:

–          by articulating a clear understanding of the impact of the current 2km distance (positive and/or negative);

–          by finding ways to improve engagement with stakeholders, and ways to better understand the subjective aspects of how people perceive the visual impact of wind turbines;

–          by expanding the descriptions of the criteria that planning authorities should consider in identifying different zones (Para 190 in the current SPP).