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.

Alongside the development of the Heat in Buildings Strategy, the Scottish Government worked with stakeholders to undertake a series of impact assessments including a Fairer Scotland Duty (FSD) assessment and an Islands Communities Impact Assessment (ICIA) both of which consider remote and rural communities. We will publish these shortly and will take the findings into account as we deliver on the full range of actions set out in the Strategy.

The Scottish Government estimates the cost of building-level measures to reach our emissions targets over the 24 year period to 2045 will be in the region of £33 billion. We have committed to investing at least £1.8 billion over the five year period of this parliament. This funding will help kick-start market growth while supporting those least able to pay.

As set out in the Heat in Buildings Strategy, we are working to develop an appropriate market framework to help consumers overcome the upfront investment costs and to attract and secure further private investment and finance to help meet the costs of the transition. We will establish a Green Heat Finance Taskforce by the end of 2021 to recommend ways the Scottish Government and private sector can collaborate to scale up investment. In addition we will explore other options, including the use of local tax powers, linking the mortgage market to energy performance and emissions, and options for new market mechanisms including potential obligations on market actors. Where action is needed in reserved areas we will work with the UK Government.

Heat in Buildings Strategy – https://www.gov.scot/publications/heat-buildings-strategy-achieving-net-zero-emissions-scotlands-buildings/

The Home Energy Scotland loan scheme provides up to £15,000 for energy efficiency measures and up to £17,500 for renewables measures (maximum of two). Registered private landlords owning five or fewer properties will be eligible for interest free loans, and owners of six or more properties will be subject to interest at a rate of 3.5% APR. Homeowners are eligible for interest free loans as well as 75% cashback up to £7,500 for renewable heat measures, and an enhanced 40% cashback for energy efficiency measures up to £6,000. In 2022-23, we will replace current cashback arrangements with a grant scheme.

In addition the Scottish Government’s fuel poverty schemes have adopted a “zero emissions first” approach. Warmer Homes Scotland enables eligible households to receive energy efficiency and heating improvements, including an increasing number of heat pumps. Our local authority-led Area Based Schemes provide energy efficiency improvements to households in or at risk of fuel poverty living in their own home or a private rented property, leveraging Energy Company Obligation (ECO) finance and private investment.

These schemes form part of our broader investment package. We have committed to invest at least £1.8 billion over the course of this parliament to kick-start market growth and support those least able to pay.

In addition we are working to develop an appropriate market framework to help consumers overcome the upfront investment costs and to attract and secure further private investment and finance to help meet the costs of the transition. We will establish a Green Heat Finance Taskforce by the end of 2021 to recommend ways the Scottish Government and private sector can collaborate to scale up investment.

The Scottish Government commissioned a review to synthesise evidence on the operation of heat pumps with relevance to Scotland. The report is available at https://www.climatexchange.org.uk/research/projects/heat-pump-use-in-scotland-an-evidence-review/

As the report sets out, the temperature output from a heat pump or boiler is different from the temperature rooms are heated to: heat emitters, such as radiators, transfer heat into rooms by being heated to a higher temperature than the air in the room. While the output temperature of a heat pump is often lower than temperatures boilers commonly produce, when appropriately configured with building fabric and radiators or underfloor heating they efficiently bring indoor temperatures up to adequate levels. In addition, the report sets out evidence on less common high temperature heat pumps.

The microgeneration certification scheme (MCS) certifies heat pump installers to ensure that systems are appropriately designed to provide sufficient heat.

The process to return Glasgow Prestwick Airport to the private sector continues and decisions have still to be taken in relation to the prospective sale of the business.

We have committed to updating Parliament on the sale process at the appropriate stage.

The process of reviewing the UK Government’s Subsidy Control Bill is ongoing. This is at a relatively high level while we await sight of proposed supporting subordinate legislation and guidance which may impact on specific sectors, such as rail and ferries.

I gave evidence on 26 October to the House of Commons Committee considering the Bill, making clear Scottish Government concerns that the Bill as drafted impinges on the Devolution Settlement. I continue to press UK Minister Paul Scully on our concerns about the Bill and its progress.

External organisations have not yet been approached at this stage but this will likely form part of the process moving forward.

In the meantime, compliance with applicable Subsidy Control rules is an important part of our considerations on rail contracts and will form part of any consideration around new options that may be available for procurement of ferry services and/or impact on ferry fares policy.

As of 28 October 2021 the Scottish Government is aware of four companies based in the Highlands and Islands who are currently approved to carry out insulation work to the BSI retrofit standards.

These companies are certified to install insulation as per the British Standards Institution (BSI) Publically Available Specification (PAS) 2030. There are a larger number of companies accredited to BSI standards to install insulation that operate in the Highlands and Islands. For our example, our national fuel poverty scheme, Warmer Homes Scotland has 12 approved sub-contractors covering the Highlands and Islands.

The Scottish Government is working with industry to co-produce a new 'Heat in Buildings Supply Chain Delivery Plan' by Summer 2022 specifically focussed on strengthening the broad supply chains needed to deliver at the pace and scale we need.

In the Heat in Buildings Strategy we committed to undertaking research to understand the extent to which the deployment of secondary technologies alongside zero emissions heating systems could help to optimise operational performance, minimise energy consumption and reduce end user fuel costs. This research is underway, and seeks to understand the technical feasibility and cost effectiveness of heat batteries, electric batteries, and thermal storage cylinders when installed alongside a range of zero emissions primary heating technologies; both independently of and in conjuncture with microgeneration technologies such as solar PV and solar thermal. We expect to publish this research in early 2022.

The Scottish Government is committed to working to improve the family justice system in Scotland, as set out in the 2019 Family Justice Modernisation Strategy. However, since this Strategy was published, a number of areas of work across the Scottish Government were paused to enable an effective response to the COVID-19 pandemic, whilst also ensuring core services remained operational. As we move towards recovery from the pandemic, the Scottish Government will prepare an update on the Strategy and look at how best to take forward actions in the Strategy which remain outstanding, including whether amendments are required to the Child Abduction Act 1984.