Chamber and committees

Through the development of the National Renewables Infrastructure Plan both Scottish Enterprise and Highlands and Islands Enterprise worked closely with the identified ports and therefore encouraged them to submit expressions of interest in the National Renewables Infrastructure Fund (NRIF).

As a result the majority of interest was noted in the first two years of the Fund, as shown below.

2010: 27

2011: 12

2012: 3

2013: 0

The call remains open for those ports keen to take advantage of the offshore renewables opportunity.

The Renewable Energy Investment Fund was capitalised with £103 million to be distributed over the current spending review period (2012 - 2015). That is still the intention. The annual spend will reflect the needs of industry and community developers.

Scottish Enterprise and Highland and Islands Enterprise follow Treasury Green Book guidance in assessing ex ante economic benefit of investments. Each project supported has been assessed accordingly.

The fund will disburse £103 million over the spending review period; with flexibility on the annual spend to reflect industry needs. The indicative allocation for 2012 -13 was £16 million, based on the prospect of a significant investment in the marine sector. Actual spend is anticipated to be some £1.8 million.

In terms of the wider picture of investment into the renewables industry more generally Scottish Renewables have recently published an assessment of investment into renewables in 2011. This is based on the capacity installed in each technology multiplied by estimates of capital cost per Mega Watt. Their analysis shows projects with a total capital cost of £757.2 million were commissioned in 2011. Similar analysis for the first nine months of 2012, shows that this exceeded over £1.3 billion.

Scottish Renewables also undertook more detailed assessment of investment into offshore wind and this research shows that £164.5 million has been invested in the Scottish economy by the six companies currently developing offshore wind projects in the Scottish Renewable Energy Zone with more than one third of this investment (£63.66 million) delivered in 2012.

The phasing of expenditure on the REIF will reflect the needs of industry and community developers. Scotland is enjoying record activity and investment in renewable energy. We exceeded our interim target to generate 31% of our energy requirement by 2011 by some 4%. Scottish renewables have shown that investment in Scotland’s renewable energy industry topped £900 million pounds in the first six months of 2012, putting it well on track to reach £1 billion over the course of the whole year.

All applications to REIF are assessed for their additional socio- economic impact through consideration of the scale and nature of benefits, (renewable energy generated/ electricity decarbonised, Gross Value Added/ jobs created, community benefits and private investment levered), the extent to which these benefits are additional, (i.e. would not be realised in the absence of REIF monies), supply chain benefits, the concentration of benefits within Scotland and the effect on existing economic activity.

Since launched in October 2012, there has been a good level of interest in REIF from a wide variety of sources with 95 enquiries received which have been, or are being, considered by the REIF delivery team covering all priority sectors; of these, some have been declined as being unsuitable, others are still at an early information enquiry stage. Several of these are expected to progress through to active and live projects during the course of the fund.