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Chamber and committees

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 16 July 2025
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Displaying 1524 contributions

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Net Zero, Energy and Transport Committee

Electricity Infrastructure Inquiry

Meeting date: 27 April 2023

Fiona Hyslop

You walked into that, minister.

The issue of competitive advantage is key. We have world-leading skills and experience. Scotland has fantastic renewables opportunities in terms of the pwer that can be generated from the wind, although it is not being serviced properly by the grid. However, one thing that will not be competitive is transmission charges for the generators. When we know that we face increasing competition coming at us from elsewhere, we have to take advantage of the window of opportunity, but uncompetitive transmission charges for our generators are a real disincentive to investment. What can be done about that? What has been done more recently? Do you recognise that the generation of renewable energy in Scotland is at a severe disadvantage to that elsewhere in the UK and the rest of Europe?

Net Zero, Energy and Transport Committee

Electricity Infrastructure Inquiry

Meeting date: 27 April 2023

Fiona Hyslop

So, it becomes an argument whether it is in the interests of consumers to have renewable energy—full stop.

Net Zero, Energy and Transport Committee

Electricity Infrastructure Inquiry

Meeting date: 27 April 2023

Fiona Hyslop

I am sure that you are, but the Treasury is making the decisions. What does it need to speed up its decision making?

Net Zero, Energy and Transport Committee

Electricity Infrastructure Inquiry

Meeting date: 27 April 2023

Fiona Hyslop

We are suggesting that seeking consent with regard to devolved areas instead of just consulting would make a big difference.

Net Zero, Energy and Transport Committee

Electricity Infrastructure Inquiry

Meeting date: 27 April 2023

Fiona Hyslop

I want to press you on your decision making. Once you have the recommendations, what do you see as being a successful timescale for making decisions that will make a difference? The risks are very high.

Net Zero, Energy and Transport Committee

Electricity Infrastructure Inquiry

Meeting date: 27 April 2023

Fiona Hyslop

On the risks of not being prompt in accelerating all the decision making, you talked about a number of issues. The committee has acknowledged that we will pursue planning consents with our minister. However, on SMEs and supply chains, if the markets are really opening up—for good reason—in the US and the EU, in particular, we must make sure that we have people with the right skills. It is not just about infrastructure. Do you acknowledge that?

Net Zero, Energy and Transport Committee

Electricity Infrastructure Inquiry

Meeting date: 27 April 2023

Fiona Hyslop

Welcome to the committee, minister. Hydro is obviously not a nascent issue.

Net Zero, Energy and Transport Committee

Electricity Infrastructure Inquiry

Meeting date: 27 April 2023

Fiona Hyslop

Clearly, the market for renewables can and will be extensive, but it needs certain decisions to be made, which you are considering just now. If we look at what is happening in the US with the Inflation Reduction Act—IRA—and what is happening in Europe with the green deal, we see that the opportunity that we have could be closing if we do not have the market arrangements that we need. That belies the fact that, underneath that, we know that the current electricity market arrangements are not working to ensure that investment of the necessary scale happens rapidly. What is your assessment of the risks?

14:30  

Net Zero, Energy and Transport Committee

Electricity Infrastructure Inquiry

Meeting date: 27 April 2023

Fiona Hyslop

I have a few follow-up questions. I am interested in the localisation and decentralisation aspects, too. We have heard from stakeholders who are innovators that diversity needs flexibility, and more localised grid connections could make a big difference in that area.

Secondly, if we consider green hydrogen and big industrial plants—for example, cement plants or big industry users—the distribution aspect, whether off grid or on a different grid, will be key, too, not least given the geography of Scotland.

Thirdly, we have talked about community benefit, but community value would be more immediate and direct access to reliable and affordable renewable green energy.

To what extent, and how, does any of what you have talked about today address those issues?

Net Zero, Energy and Transport Committee

Electricity Infrastructure Inquiry

Meeting date: 27 April 2023

Fiona Hyslop

My final question is: what impact will the establishment of the future systems operator have on whole energy systems planning? Will the FSO provide certainty about what, where and when the infrastructure needs to be built? You use the term “we” quite a lot, but it is actually private companies that are going to invest the billions of pounds. What can the establishment of the FSO do to provide certainty to enable businesses to invest?