1. Keith Anderson Renewables and Major Projects Director Delivering Scotland’s Renewable Energy – European Perspective

2. Introduction to ScottishPower Delivering Scotland’s renewable energy targets European Perspective Agenda

3. ScottishPower in the UK 10% UK share of domestic electricity market Generation mix of coal, gas, hydro and wind 3rd largest distribution company in the UK 5.2m customers and growing The leading developer of wind energy in the UK Investing £3bn+ in UK generation and networks in next 5 years Coal-fired Windfarm OCGT Hydro Pumped storage CCGT Power Systems service area Gas Storage Facility

4. Introduction to ScottishPower Delivering Scotland’s renewable energy targets European Perspective Agenda

5. Climate Change We all know it’s happening Significant effect on energy policy Move to low carbon economy New thinking required –More renewables –More decentralisation –Greater efficiency and energy awareness Source: University of Berne and National Oceanic and Atmospheric Administration CO 2 levels past 60 thousand years

6. Abundant natural resource Hydro Wave & tidal Biomass Solar and other Scottish Renewable Resource Large Potential Contribution to Targets Guess which is the best country in Europe for generating wind power?

7. Scottish companies pioneering new technologies Full-scale projects urgently needed ScottishPower, OPD and Amec working together Welcome Executive support World Class Marine Resource Scotland has a one-off opportunity to lead the World

8. 18% from renewable resource by 2010 Will be met by existing hydro and near term projects 40% target by 2020 Bigger challenge but can be met Scotland will be a world leader in renewable energy Scotland’s Renewable Targets

9. Met by sensible mix of large and small projects For example - 10 large, 100-500 MW - 20 small, 10-100 MW Landscape will not be dominated - 330 km 2, 0.2% Investment of £2-3 billion Annual benefit of £200m+ Renewables Can Deliver Locations indicative only

10. Need to keep the lights on Next generation of base load to be chosen Renewable power will augment Wind power is predictable Always blowing somewhere! Security of Supply

11. Sustainable approach Early consultation Sensitive design Benefit to economy and community Black Law example - Reinstated coal workings - Habitats to encourage wildlife - £100k annual community benefit Best Practice Renewable Development Black Law Windfarm

12. Challenges to UK Renewables Delivery Policy - Investors need stability Planning - Significant delays, Local Authorities reluctant - Need to overcome NIMBY challenge and maintain momentum - Mindful that policy review could slow progress further Transmission - Upgrades essential to meet targets - Timescales critical

13. Introduction to ScottishPower Delivering Scotland’s renewable energy targets European Perspective Agenda

14. Is 12% Achievable in Europe? European targets only achievable if: We are allowed to capitalise on our natural resources Policies are flexible Freedom to choose appropriate incentive mechanisms Incentives are non-locational Technology blind Infrastructure (grid) investments sufficient

15. What Else Do We Have To Do? Promote social attitudes to renewable energy –And energy conservation / efficiency Persuade on contribution to security of supply –Grid need not be an issue –Less dependence on imported fuels Embrace development of new technologies

16. Summary Scotland has an abundance of renewable resource Needs to be capitalised Impediments removed Significant contribution to UK and European targets All achievable if momentum improved