This item was published during the term of a previous administration that ended in April 2007
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Next steps for marine energy
12/05/2006
A consultation was launched today on the best way to increase green energy generation from wave and tidal sources in Scotland.
This follows a commitment by Scottish Executive Ministers to amend the Renewables Obligation (Scotland) (ROS) to boost development of the important renewables sector.
ROS offers an incentive to suppliers to generate their electricity from renewable sources.
Deputy First Minister Nicol Stephen said:
"Scotland's potential to become a European powerhouse for clean, marine energy is enormous. Not only do we have the right coastline and weather conditions, but world-leading technology is already being developed in Scotland.
"To achieve this goal, greater support for this exciting new sector is now needed.
"We have held detailed discussions with the industry on how best to do this. Today's publication draws together significant new proposals to kickstart development.
"Our preference is to create a 'banded' obligation, where the incentives would be set higher for marine energy than other forms of renewables.The purpose of this consultation is to involve generating and renewables companies and industry experts.
"The new system should be in place by April 2007, subject to state aid approval.
"We have set ambitious renewable energy targets for Scotland which we are now confident of meeting. The next challenge is to become a genuine global leader in wave and tidal energy. Today's announcement is the start of a major drive forward."
The Executive has acknowledged that emerging energy technologies such as wave and tidal require additional support beyond the current levels offered through the Renewable Obligation (Scotland), or ROS.
Following consideration, the Executive takes the view that a support scheme awarding multiple Renewable Obligations Certificates (ROCs) to output from qualifying marine generation sources could not be delivered in a timely manner. The Executive has therefore developed an alternative option that will provide similar support, but which still requires an amendment to the RO(S).
The Executive proposal is for a 'banded' Obligation. This effectively means that a supplier's obligation will be amended so that a part of it must be met by electricity from wave or tidal devices. For example, a supplier's obligation during 2007/8 is currently set at 7.9 per cent; an amendment could be made so that a certain percentage of this amount had to be met by producing ROCs as evidence of generation from wave or tidal devices.
As with the standard element of a supplier's Obligation, this marine element could be met either by presenting ROCs from qualifying marine energy sources, or by making a buy-out payment. In order to provide a sufficient incentive for electricity suppliers to buy electricity from wave or tidal developers rather than pay the buy-out price, the buy-out payment level for the marine element would be set considerably higher than the "standard" buy-out price.
Whilst no firm figures have been set for how such a banded Obligation might operate, the consultation document raises a number of questions relating to: the size of the obligation that should be placed on suppliers; the level of buy-out payments that should be set, phasing and duration of the MSO (by technology type or by output (MWh) and more detailed questions on a range of options for the recycling of payments made to the buy-out fund.
Interest parties should log onto http://www.scotland.gov.uk/Publications/2006/05/10153327 or contact James Thomson on 0141 242 5895. The deadline for responses is 3rd August.
This release was published on 15/05/2006