Summary

Leading the transition to a carbon neutral economy.


Carbon Neutral Photo


  • A £20 million Energy Investment Fund
  • A £60 million Low Carbon Innovation Fund
  • A Route Map on an Energy Efficient Scotland, that will lead to over £10 billion of activity to retrofit existing homes and buildings throughout all parts of Scotland
  • 50% of Scotland’s energy needs met by renewables by 2030
  • £25m to support innovation in wave and tidal technologies

Energy Efficient Scotland Route Map

By 2030 the equivalent of 50% of the energy for Scotland’s heat, transport and electricity consumption is to be supplied from renewable sources, along with a 30% increase in the productivity of energy use across the Scottish economy. That is why we have made energy efficiency a national infrastructure priority and set out our plans for this transformation in the Energy Efficient Scotland Route Map. We estimate this will result in a £10-12 billion programme of public and private sector investment over the next 20 years, with the potential to boost Scottish GDP growth and generate economic opportunity across the whole of Scotland.

Funding the transition to a carbon neutral economy

We have already allocated around £40 million to 16 low carbon capital projects through the Low Carbon Infrastructure Transition Programme. To progress our transition to a carbon neutral economy, we are providing support for renewable and local carbon infrastructure through our £20 million Energy Investment Fund and £60 million Low Carbon Innovation Fund.

Wave and Tidal Energy

To maintain Scotland’s position as a world leader in wave and tidal energy technologies, our Wave Energy Scotland programme has been designed to drive forward the search for innovative solutions. The programme has already made £25 million available to support 60 innovative projects, maximising the economic benefit of design, manufacturing and export. Our flagship wave and tidal test facility, the European Marine Energy Centre (EMEC), has over a decade of real-sea experience. We will also continue to support the expansion of offshore wind by providing new guidance to industry on licensing and decommissioning, as well as providing a further £2 million this year to support innovation and to help reduce business costs.

Electricity and Gas Networks

Electricity and gas network businesses in Scotland, and their supply chain, will be key to realising our transition to a carbon neutral economy. We are working with these companies, as well as the wider sector and the regulator, to ensure these future plans are aligned to our vision for the sector.

Orkney Renewable Energy

Wind turbine power is a well-established technology in the Orkney islands. The islands are now at the forefront of efforts to develop commercially viable devices to harness wave and tidal energy resources. The European Marine Energy Centre in Stromness was established in 2003. These world-class test facilities, alongside a wealth of academic and maritime expertise and a growing number of specialist supply chain businesses, have helped make Orkney a global centre for renewable energy development.

Improving facilities for the emerging renewables industry has been a top priority for local public sector organisations, with Orkney Islands Council investing in major new harbour developments at Hatston near Kirkwall, Lyness, on the island of Hoy, and Stromness. Meanwhile, Highlands and Islands Enterprise has created extensive on-shore facilities for developers at Hatston.

The Orkney community has been quick to embrace the renewables industry, recognising its enormous economic potential, with increasing numbers of local businesses keen to diversify into the field. The creation of the Orkney Research and Innovation Campus in Stromness will provide accommodation for universities and for new occupants, including inward investors, existing Orkney companies expanding into new activities or markets, and new ventures formed to take up opportunities that emerge through R&D undertaken at the campus.

Community owned wind turbines in Orkney generate electricity, providing revenue to support local projects and address fuel poverty. Curtailment has resulted in communities becoming involved in highly innovative projects piloting hydrogen production and energy storage systems.

Renewable energy now supports around 300 jobs in Orkney across a wide range of sectors, from manufacturing and engineering, to marine work, research and consultancy services, with additional posts being created every year. Orkney’s entire electricity needs are regularly met from local renewables sources.

Key resources:

Scotland’s Energy Strategy

Scottish Government: Energy

Energy Efficient Scotland: route map

Scottish Enterprise: Funding and Grants

Wave Energy Scotland

European Marine Energy Centre