Chamber and committees

The Scottish Government Procurement and Property Directorate (SPPD) conduct all procurements in accordance with the requirements of procurement law which requires that we treat all providers equally and without discrimination. National Statutory, Policy and Best Practice guidance is available to support buyers across the public sector on delivering against our ambitions, along with a range of point-of-use tools, support and training for buyers and suppliers.

The Procurement Reform (Scotland) Act 2014 includes a Sustainable Procurement Duty which requires all public sector procurers to consider how their procurement process can:

“Facilitate the involvement of small and medium sized enterprises, third sector bodies and supported businesses in the procurement process” (Section 9(1)(a)(ii) of the Act)

To support the procurement officers with making decisions about the best approach to market, the Scottish Government provide a suite of Sustainable Procurement tools which ensure that appropriate consideration is given at strategy stage to the nature of the requirement, the complexity of the market and the volumes which require to be delivered to identify the best strategy and approach.

The outcome of this test is considered by the team and informs the strategy which is then presented to a cross sectoral User Intelligence Group (UIG), consisting of procurement and technical staff from across the public sector. For the provision of the national electricity framework, the UIG agreed with the SPPD recommendation that a single supplier framework would deliver best value, taking into account the requirement for competitive pricing and guaranteed security of supply.

The framework terms and conditions have a mechanism for local authorities to approach EDF to sell electricity which they have generated. The Framework also has included the option of Power Purchase Agreements.

The terms and conditions state that for the Supply of Electricity from a self-generating source the Supplier shall enter into a Power Purchase Agreement with such Scottish Public Sector Body on normal commercial terms. Such purchase shall stand entirely separate to the arrangements under the Framework and the Supplier shall not be under any obligation to sleeve the electrical output of such Public Body’s facility into the supply of electricity under the framework.

The Supply of Electricity agreement has also included the options of 6 different Power Purchase Agreement variations as part of the Statement of Requirements and the Terms and Conditions.

Inclusion of these terms within the structure of the Framework Agreements ensures that our procurement of Electricity is conducted in a fair and proportionate manner.

The Just Transition Fund has allocated £75 million to date, supporting projects and communities across the North East and Moray to create jobs, support innovation, and secure the highly skilled workforce of the future.

FLS has a portfolio of 25 operational windfarms on the national forests and land, amounting to a total of 1217MW installed generation capacity. FLS is not currently aware of any community ownership in this portfolio.

The National Electricity Supply expires on 31 March 2026, the framework has 3 optional 12 month extensions.

Variations to the framework can be made, however these must be in accordance with procurement law and be non-material changes and in agreement with the Supplier.

All 32 local authorities use the national Framework for the Supply of Electricity, however if local authorities are also getting electricity from another source or another contract, then Scottish Government do not have visibility of this and this information would only be available from each individual local authority.

We committed to publishing the Green Industrial Strategy in summer 2024. The strategy was published on 11 September, following summer recess and the launch of the 2023-24 Programme for Government.

The strategy aims to ensure Scotland gets the maximum possible economic benefit from the opportunities created by the global transition to net zero and we are already getting on with delivering across the five opportunity areas, and wider system enablers identified in the strategy. For example, the Scottish Government is driving forward the recommendations of the First Minister’s Investor Panel to attract global capital investment around the physical infrastructure needed to achieve our energy transition. On skills, funding has been allocated to support industry-led development of the energy skills passport; to create an energy transition skills hub in Aberdeen; and launch a pilot scheme with the National Energy Skills Accelerator to determine the skills required for an energy transition. The new Planning Hub will strengthen capacity and accelerate decision making, with an initial focus on hydrogen applications.

A decision on Berwick Bank will be taken by Ministers in due course. We cannot comment on a live application but we are committed to a robust decision making process for offshore wind farms which considers the need for development alongside potential impacts to the marine environment and marine users.

The Green Industrial Strategy recognises ports are key enablers for the energy transition. Ports have a critical role to play in supporting the growth of Scotland’s offshore wind sector and growing our hydrogen production and export capabilities, which are two of the five priority opportunity areas identified in the strategy.

The Scottish Government is engaging and collaborating with ports on the opportunities from offshore wind and engaging with key industry bodies including the recently formed Scottish Offshore Wind Ports Alliance (SOWPA) and the British Ports Association’s Scottish Ports Group.

The Scottish Government is working closely with both Inverness and Cromarty Firth Green Freeport and Forth Green Freeport which will play a crucial role in our commitment to a just transition to net zero, by creating clusters of high-tech manufacturing excellence in low carbon sectors, including offshore wind and renewable hydrogen.

The Green Industrial Strategy recognises ports are key enablers for the energy transition. Ports have a critical role to play in supporting the growth of Scotland’s offshore wind sector and accelerating investment in related infrastructure, manufacturing and fabrication. Ports will also play a key role in growing the hydrogen sector to facilitate the export of hydrogen and hydrogen products to external markets in the UK and in Northern Europe. Both Wind and Hydrogen are priority opportunity areas identified in the GIS.

Forth Green Freeport’s recently submitted full business case details ambitions to create 34,500 direct jobs, comprising 16,000 direct jobs and 18,500 jobs supported indirectly in supply chains and through wages, and up to £7.9 billion in investment.

The full business case is currently being appraised by Scottish and UK governments. Upon approval, it will unlock up to £25m seed capital funding to support enabling works. The commitments made by the Green Freeports in their business cases will be subject to robust monitoring and reporting requirements, enshrining their commitments across a number of key dimensions.