Official Report 72KB pdf
Renewables Obligation (Scotland) Amendment Order 2009 (Draft)
I welcome everyone to the 19th meeting of the Economy, Energy and Tourism Committee in 2009. As usual, I remind everyone to switch off their mobile phones and BlackBerrys because they can interfere with the sound system even if they are in silent mode.
Thank you, convener. Members will recall that I appeared before the committee on 11 March to discuss the introduction of banding to the Renewables Obligation (Scotland) Order. During that meeting, I made it plain that the Scottish Government intends to maintain the higher levels of support for wave and tidal power in Scotland that were introduced to the renewables obligation in 2007. As we had not received the European Commission's response to our notification about that higher level of support, I explained that we intended to return to the committee with a suitable and specific amendment when we had received the Commission's formal response. That response duly arrived in April and confirmed that the Commission had no objection to our proposals.
I have a couple of questions about the changes and how they relate to those elsewhere in the United Kingdom. Previous orders put a cap on the level of support for wave and tidal, but the draft order includes no such cap. It would be useful to know what the intention is in that regard. Will the cap be appropriately increased or will it be removed?
The belief is that now is not the right time to establish a firm cap on higher bands. The ceiling might become an issue in time as capacity starts to build and the ROC numbers start to have an effect on the wider obligations, but that would be welcome. We would like to be at that stage because it would indicate success. That will allow us to take stock and see how best to shape things as we proceed.
That is helpful. I welcome the UK Government's announcement that it intends to increase the ROCs for offshore wind as part of its work to expand that sector. That has huge implications for Scotland. How will it be reflected in relation to renewables obligations in Scotland?
The budget announcement meant, in effect, that changes to offshore wind were under active consideration. Any actual changes will be subject to consultation.
In both sectors, the intention remains for Scotland to match the levels of renewables obligation that are provided by the UK Government.
That has been our track record to date. Yes.
Will you comment on the greater cost of developing the difficult deep-sea areas that we represent and the greater—indeed, the huge—prize that will come from developing them, which underpins the approach that is being adopted? Will you ensure that the ROCs are kept under close scrutiny to ensure that they reflect the actual costs of such developments?
Absolutely. We are treating them as an important incentive and signal to get devices and small arrays in the water earlier. The order allows us to amend the bands if experience shows that it is not having the effect that we want—that it is not generous enough or that it is too generous. We will monitor that closely with the other stakeholders, who have been helpful during the consultation process to date.
As there are no further questions, we move to item 2, which is to consider the motion on the affirmative instrument.
Motion moved,
That the Economy, Energy and Tourism Committee recommends that the draft Renewables Obligation (Scotland) Amendment Order 2009 be approved.—[Jim Mather.]
Do you wish to say anything else, minister?
That says it all.
Does anyone wish to contribute to the debate?
No.
The question is, that motion S3M-4202, in the name of Jim Mather, be agreed to.
Motion agreed to.
I thank the minister for his attendance. We will give him next week off, but we will see him again in two weeks' time, when we discuss the progress that has been made since our tourism inquiry.
I look forward to seeing you to discuss a different topic. Thank you.