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Renewables Obligation (Scotland) Amendment Order 2015 [Draft]
Under agenda item 2, we will consider the draft Renewables Obligation (Scotland) Amendment Order 2015. I welcome Fergus Ewing, the Minister for Business, Energy and Tourism. He is joined by Fiona Hepplewhite, who is a policy adviser to the Scottish Government; Jason Hubert, who is head of business development at Forestry Commission Scotland; and Olive Hogg, who is a Scottish Government solicitor. Welcome to you all.
I invite the minister to speak to the instrument.
Thank you, convener, and good morning to everyone.
I have in front of me three pages that set out the extraordinary success of the Scottish Government in promoting work through the renewables obligation, but as I have to be at Newbattle abbey by 10 o’clock to convene the opencast task force—at which I will submit your apologies, convener—I will just stick to the order, if I may.
The order implements policy decisions in relation to the reporting requirements and sustainability criteria for stations using solid biomass and biogas feedstocks to generate electricity. Reporting requirements on the use of solid and gaseous biomass under the renewables obligation were first introduced in Scotland in 2009 to ensure that biomass material is sourced responsibly and in a way that minimises and eliminates any adverse impacts. The requirements were enhanced in 2011 and again in 2014. The proposed amendments are designed to ensure that the legislation remains fit for purpose. We see no reason for a divergence from the rest of the United Kingdom on biomass sustainability issues, so the amendments mirror those that are being made to the RO mechanisms in England and Wales and in Northern Ireland. That approach is favoured by industry.
The first of the proposed changes relates to making compliance with the biomass sustainability criteria mandatory in order to receive support. Under the renewables obligation Scotland, generators are required to submit information on the sustainability of their biomass fuels—including information on land use and greenhouse gas emissions—to the Office of Gas and Electricity Markets.
The committee will remember that, last year, it approved an amendment to the renewables obligation order that introduced, first, tighter sustainability standards for electricity generated by solid biomass and, secondly, a new requirement for generating stations of 1MW and above to provide an annual independent audit report. Those changes were introduced on a reporting-only basis to allow generators time to become familiar with what is required in practice. The current amending order would make compliance with the sustainability criteria mandatory. Generating stations of 1MW and above that use solid biomass and biogas will be required to report and to meet the sustainability criteria in order to claim renewable obligation certificates.
The second change relates to greenhouse gas emissions targets. Operators are required to account for the life-cycle greenhouse gas emissions for the biomass that is used to generate electricity. To ensure that biomass power delivers genuine greenhouse gas savings and to promote good practice and innovation across the supply chain, we are introducing a tightening greenhouse gas emissions target. Biomass power is already required to meet a greenhouse gas savings target of at least 60 per cent compared with the European Union fossil fuel average, and that target will become tighter in 2020 and 2025. The tightening greenhouse gas emissions targets will be applied as an annual average to allow generators to better manage procurement risks. That is subject to the provision that a consignment of biomass must not exceed an overall ceiling to ensure that each consignment delivers a good level of savings.
Finally, we are making a number of technical adjustments to the reporting requirements and sustainability criteria. Those minor adjustments and clarifications have been identified as areas that will help to ensure the effective operation of the scheme and lead to more accurate reporting by operators. Ofgem will continue to regulate compliance with the mandatory sustainability criteria.
To sum up, the proposed changes will improve the efficiency and sustainability of the renewables obligation and ensure that the legislation remains fit for purpose. Before I formally move the motion that recommends that the order be approved, I would be happy to respond to any questions that members may have.
Thank you, minister. I hope that you will not break any speed limits on your way to Newbattle abbey; you tried your best to break them in your reading of that statement.
Do members have any questions on the order that they want to put to the minister?
Members: No.
In that case, we will move on to agenda item 3. I invite the minister to move motion S4M-14576.
Motion moved,
That the Economy, Energy and Tourism Committee recommends that the Renewables Obligation (Scotland) Amendment Order 2015 [draft] be approved.—[Fergus Ewing.]
Motion agreed to.
Thank you very much. Is the committee content for the convener and the clerk to produce a short factual report of the committee’s decisions and to arrange to have that published?
Members indicated agreement.
I thank the minister and his officials for coming.
We will have a short suspension.
09:39 Meeting suspended.