EXECUTIVE SUMMARY
In January 2009, the Forum for Renewable Energy Development in Scotland ( FREDS) reconvened its industry-led Marine Energy Group ( MEG). This Road Map reflects an up-to-date assessment of the status and potential of the marine energy industry in Scotland, alongside recommended actions to ensure its continuing growth. This new assessment is particularly timely given the increased pressures for the development of renewable energy flowing from the Climate Change (Scotland) Act 2009 1 and the new European Directive on Renewable Energy 2.
Although marine energy in Scotland has not developed as quickly as expected in the 2004 MEG Report "Harnessing Scotland's Marine Energy Potential" 3 - due in part to technical difficulties and financial constraints relating to technology development - the sector as a whole has made some significant steps forward over the last five years. Not least amongst these is the provision of strong public revenue support for marine energy projects in Scotland, and the fact that institutional investors have started to get involved in the sector. Additionally, Scotland is now seen as a global leader in marine energy, and this perception has been helped in no small way by the strengthening of facilities at EMEC to incorporate tidal testing. Significant progress has also been made in preparing the way for pre-commercial and commercial project development, with the completion of a Strategic Environmental Assessment ( SEA) for wave and tidal energy 4 in Scotland in 2007, followed by the commencement of a commercial leasing process by The Crown Estate for sea-bed in the Pentland Firth/Orkney Waters area.
This document sets out scenarios for growth of the industry, to build on these steps. It identifies five key issues - finance, grid, planning, infrastructure/supply chain and Europe - which will be vital in terms of realising the high growth scenarios. The following table outlines the Group's view on the priority recommendations:
- THE SCOTTISH GOVERNMENT should introduce a flexible WATES style initiative as an open call with an increased budget and an annual allocation which developers must 'use or lose' within a 12-month window
- THE SCOTTISH GOVERNMENT should review urgently the level of ROC banding for tidal stream, as developer opinion on MEG is that tidal stream should attract 5 ROCs/ MWh, in line with the band for wave energy in Scotland.
- THE DEPARTMENT FOR ENERGY AND CLIMATE CHANGE ( DECC) should announce urgently the criteria for the £22 million Marine Renewables Proving Fund, with a call for funding proposals issued as soon as possible.
- SCOTTISH HYDRO-ELECTRIC TRANSMISSION LTD should continue its pre-construction design work, and on receipt of suitable applications for connection build:
- a new 132 kV line from the Northeast Caithness coast to Dounreay; and
- a new 132 kV line from the Orkney Islands to Dounreay
- MEG's GRID SUB-GROUP should carry out a strategic review of Scottish grid infrastructure for marine energy, identifying longer-term grid infrastructure upgrades on the basis of expected development locations. This should take as its context the ENSG Report 5 that describes the 2020 vision for the GB grid and the National Planning Framework 2.
Over the coming months, MEG will continue with its work programme, set in the context of the recommendations within this Road Map. It will undertake a review of progress against these recommendations in Summer 2012.