To ask the Scottish Executive, following the publication of the UK Government’s response to its clean coal consultation, what its position is in relation to thermal guidance issues and in particular carbon capture and storage.
Under Section 36 of the Electricity Act 1989, the building of any new thermal based stations would require consent from Scottish Government ministers. We published draft Section 36 guidance for thermal power stations in early 2009 for consultation. We published the individual responses in March 2009, and also held a number of workshops to discuss some of the issues in more detail. The Scottish Government decided to await the outcome of the consultation of the UK government''s clean coal framework so that the regulatory framework in broad terms is similar across the UK as a whole, with the overall objective of encouraging carbon capture and storage (CCS) deployment and the objective of decarbonisation of the electricity sector by 2030.
The UK Government has today published its response to the clean coal framework. The Scottish Government can therefore announce that its position on coal-fired power stations will be as follows:
That from today, 9 November 2009, any application for a new coal plant in Scotland will need to demonstrate CCS on a minimum of 300MW (net) of capacity from their first day of their operation.
Further new builds from 2020 would be expected to have full CCS from their first day of their operation.
For regard to retro-fitting of existing coal plants, a rolling review of the technical and economic viability of CCS will take place with the aim of taking a final view on retro-fitting by 2018, with the likelihood of having existing plants retro-fitted by no later than 2025.
If CCS is not seen as technically or financially viable at some stage in the future then alternatives will be considered based around the Emissions Trading Scheme, including consideration of an Emissions Performance Standard.
These proposals relate to coal stations only. We can confirm that our position on gas, oil and thermal stations remains as per our answer to question S3W-24912 on 17 June 2009 where for stations over 300MWe, applicants will have to demonstrate that any new applications demonstrate carbon capture readiness.
The Scottish Government is working closely with the UK Government on this issue, including the proposals in the forthcoming UK energy bill which will allow a levy on generation to be charged in order to fund up to four CCS demonstrator projects across the UK. We believe there are a number of demonstrator projects in Scotland which could attract funding under the proposed scheme and will want to ensure that the Scottish-based projects are considered favourably as part of the process of allocating funds to projects.
The Scottish Government is determined to ensure that we become Europe''s leader in carbon capture and storage. The Scottish Government will continue to work with the UK Government, EU, business, research and academics to ensure we fully capitalise on Scotland''s potential. We are confident that this policy position strikes a balance between short-term security of supply, ensuring demonstration of CCS technology and making progress towards our carbon reduction targets.
In the meantime, we are working closely with the Scottish Environment Protection Agency, Marine Scotland, Scottish Natural Heritage, Crown Estate, Health and Safety Executive as well as the UK government in order to develop an integrated approach to the licensing and consents processes which will be required for any CCS project. The Scottish Government is keen to develop a pragmatic approach to risk assessment and a streamlined approach to decision making, which would place Scotland at the forefront of the approach to CCS development. We look forward to these positive discussions with our partners continuing.
Following on from the consultation, the Scottish Government has also decided that as part of any future application, either for new or significant retro-fitting for any thermal station, which would cover gas and biomass stations as well as coal, developers will need to demonstrate that they have seriously considered how waste heat from any thermal station could be utilised for use by local households or industry. The application would need to demonstrate that discussions with local authorities have been held. In the meantime, the Scottish Government is undertaking a short assessment on the issue of waste heat to assess issues relating to capacity, barriers and potential role for government. We are of the view that use of waste heat could be a way to assist security of supply and reduce overall emissions although we recognise some of the challenges involved.
Finally, we plan to issue our detailed thermal guidance shortly following the setting out of the initial policy position.
All answers to written parliamentary questions are available on the Parliament''s website, the search facility for which can be found at http://www.scottish.parliament.uk/Apps2/Business/PQA/Default.aspx.