Stephen Boyd, Assistant Secretary, Scottish Trades Union Congress
Content Opportunities STUC aspirations Policy context Progress to date Barriers Conclusions
Opportunities Scotland possesses: 25% of Europe’s onshore and offshore resource 25% of Europe’s tidal resource 10% of Europe’s wave resources Biomass, hydrogen Massive potential for deployment of emerging carbon capture and storage technology in North Sea
STUC aspirations A growing renewables sector should: Create quality, sustainable employment …particularly in fragile remote economies Reinvigorate Scottish manufacturing Use existing skills base effectively Develop advantage in skills of the future Contribute to climate change targets
Policy Context Economic and social policy Scottish and UK Government energy policy Climate Change (Scotland) Bill
Economic and Social Policy Scot Govt Economic Strategy Targets To match GDP growth rate of small independent EU countries by 2017 To raise Scotland’s GDP growth to the UK level by 2017 The ‘golden rules’ Solidarity: to increase proportion of income earned by the lowest 3 income deciles as a group by 2017 Cohesion: to narrow the gap in (labour market) participation between Scotland’s best and worst performing regions by 2017 Sustainability: to reduce emissions by 80% by 2050
Energy Policy UK target 20% of electricity supply from renewable energy from 2020 Scottish targets 31% of electricity supply by 2011 50% of electricity supply by 2020 16,000 jobs in renewables by 2020
Climate Change (Scotland) Bill Stage 3 debate taking place today Interim target of 42% reduction in greenhouse gases by 2020 80% reduction in greenhouse gases by 2050
Progress to date 1 3000 jobs Total renewables capacity installed, consented or under construction is 5.5 GW – more than 31% of gross energy consumption Whitelees – biggest onshore windfarm in Europe heading towards completion Clyde – consent granted for 200 turbine onshore windfarm; guarantee of at least £200m of contracts for Scottish firms
Progress to date 2 European Marine Energy Centre (EMEC) test facility established in Orkney Scottish marine energy developers recognised as world leaders Sites identified and leasing programmes underway for tidal and offshore wind developments Saltire Prize
Barriers 1 Infrastructure – massive investment required to upgrade grid network and connect projects in remote areas Regulatory framework – working against achievement of renewables targets and rural job creation Capital – ongoing failure to provide patient, committed finance to growing, innovative firms
Barriers 2 Absence of feed-in tariff – stifling progress on microgeneration Skills – emerging constraints Planning - under resourced Local Authority Planning Departments Natura 2000 – ‘absolutist’ approach to implementation of Birds and habitats Directives Nimby-ism
Conclusions Employment dividend to date is insufficient to justify extravagant political rhetoric Development must deliver quality jobs to Scotland’s fragile remote economies Market fundamentalism continues to slow progress Direct state role in resolving barriers is justified and indeed essential