Keith Anderson

Renewables and Major Projects Director

Delivering Scotland’s Renewable Energy – European Perspective

• Introduction to ScottishPower

• Delivering Scotland’s renewable energy targets

• European Perspective

Agenda

ScottishPower in the UK

• 10% UK share of domestic electricity market

• Generation mix of coal, gas, hydro and wind

• 3rd largest distribution company in the UK

• 5.2m customers and growing

• The leading developer of wind energy in the UK

• Investing £3bn+ in UK generation and networks in next 5 years

Coal-fired

Windfarm

OCGT

Hydro

Pumped storage

CCGT

Power Systems service area

Gas Storage Facility

• Introduction to ScottishPower

• Delivering Scotland’s renewable energy targets

• European Perspective

Agenda

Climate Change

• We all know it’s happening• Significant effect on energy

policy• Move to low carbon

economy• New thinking required

– More renewables– More decentralisation– Greater efficiency and energy

awarenessSource: University of Berne and National Oceanic and Atmospheric Administration

CO2 levels past 60 thousand years

• Abundant natural resource

• Hydro

• Wave & tidal

• Biomass

• Solar and other

Scottish Renewable Resource

Large Potential Contribution to Targets

Guess which is the best country in Europe for generating wind power?

• Scottish companies pioneering new technologies

• Full-scale projects urgently needed

• ScottishPower, OPD and Amec working together

• Welcome Executive support

World Class Marine Resource

Scotland has a one-off opportunity to lead the World

• 18% from renewable resource by 2010

• Will be met by existing hydro and near term projects

• 40% target by 2020

• Bigger challenge but can be met

• Scotland will be a world leader in renewable energy

Scotland’s Renewable Targets

• Met by sensible mix of large and small projects

• For example- 10 large, 100-500 MW- 20 small, 10-100 MW

• Landscape will not be dominated - 330 km2, 0.2%

• Investment of £2-3 billion• Annual benefit of £200m+

Renewables Can Deliver

Locations indicative only

• Need to keep the lights on

• Next generation of base load to be chosen

• Renewable power will augment

• Wind power is predictable

• Always blowing somewhere!

Security of Supply

• Sustainable approach• Early consultation• Sensitive design• Benefit to economy and

community• Black Law example

- Reinstated coal workings- Habitats to encourage

wildlife- £100k annual community

benefit

Best Practice Renewable Development

Black Law Windfarm

Challenges to UK Renewables Delivery

• Policy- Investors need stability

• Planning- Significant delays, Local Authorities reluctant

- Need to overcome NIMBY challenge and maintain momentum

- Mindful that policy review could slow progress further

• Transmission- Upgrades essential to meet targets

- Timescales critical

• Introduction to ScottishPower

• Delivering Scotland’s renewable energy targets

• European Perspective

Agenda

Is 12% Achievable in Europe?

• European targets only achievable if:• We are allowed to capitalise on our natural resources• Policies are flexible

• Freedom to choose appropriate incentive

mechanisms• Incentives are non-locational• Technology blind

• Infrastructure (grid) investments sufficient

What Else Do We Have To Do?• Promote social attitudes to

renewable energy

– And energy conservation / efficiency

• Persuade on contribution to security of supply

– Grid need not be an issue

– Less dependence on imported fuels

• Embrace development of new technologies

Summary

• Scotland has an abundance of renewable resource• Needs to be capitalised• Impediments removed• Significant contribution to UK and European targets• All achievable if momentum improved