Current status: Answered by Gillian Martin on 22 May 2025
To ask the Scottish Government what analysis it has carried out of the potential impact of zonal electricity pricing on renewable generation projects located on island communities in the last 10 years, and what the conclusions were.
Decisions on the Review of Electricity Market Arrangements (REMA) are reserved to the UK Government. The UK Government has published impact assessments and is updating its analysis ahead of a final decision this summer. We are awaiting sight of this updated modelling.
In addition, a range of impact assessments have been carried out by consultancies and industry bodies.
We met with researchers, industry and consumer organisations – as well as international electricity market experts – in December 2024 to consider the evidence and have engaged extensively with stakeholders over the past two years to understand all impacts.
This is a complex area and the Scottish Government is clear that UK Government reforms must reduce costs for Scottish consumers, ensure Scotland’s communities feel the benefit of the energy transition and protect investment in our renewables industry and supporting decarbonisation.