Question reference: S6W-03775
- Asked by: Liam Kerr, MSP for North East Scotland, Scottish Conservative and Unionist Party
- Date lodged: 14 October 2021
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Current status: Answered by Patrick Harvie on 4 November 2021
Question
To ask the Scottish Government what its position is on whether the funding allocated to the Low Carbon Infrastructure Transition Programme will be sufficient to meet its ambitions for the deployment of heat networks.
Answer
The Heat Networks (Scotland) Act 2021 has set out ambitious targets for heat network deployment, requiring 2.6 terawatt hours of output by 2027 and 6 terawatt hours by 2030.
To help meet these targets, the Scottish Government will invest £400 million over the next five years in large-scale heat decarbonisation infrastructure through the successor scheme to the Low Carbon Infrastructure Transition Programme (LCITP). However, we cannot rely on public investment alone to fund the development of low carbon heat networks in Scotland and government support must be used to leverage private investment into heat networks if the targets are to be met. The LCITP provided grants for up to 50% of project capital costs with the remainder being match funded and the successor programme is likely to take a similar approach. Financial mechanisms such as the Green Growth Accelerator will also be key in stimulating investment.
The regulatory system laid out within the Heat Networks (Scotland) Act will play an important role in boosting confidence in the sector and providing greater certainty for investors. For example, the Act provides for the award of Heat Network Permits which will provide investors greater assurance over the potential customer base available, helping lower investment cost.
Detail on how we will meet the ambitious heat network targets will be provided in the Heat Networks Delivery Plan, which we will publish for consultation in due course.