DRIVING THE

LOW CARBON
ECONOMY
PAPER 3: ONSHORE WIND
DRIVING THE
LOW CARBON
ECONOMY

key asks
✓ Better regulation
✓ Improved grid access
✓ Stable financial incentives

2500
the story so far...
The onshore wind industry has seen substantial growth
2000
over the last decade and now accounts for over half the
Installed Capacity (MW)

installed renewable energy capacity operating in Scotland,

providing clean, secure electricity to homes and businesses 1500
across the country.

As an extremely competitive form of generation, we can bank 1000

on wind to deliver the bulk of Scotland’s short- to medium-
term renewables targets and to pave the way for investment in
offshore and marine technologies. 500

And with built capacity set to treble over the next few years,
the task of reaching Scotland’s target of 80% renewable 0
2005 2008 2010
electricity by 2020 rests predominantly on the shoulders of
this sector. Year
Figure 1: MW of Installed Wind Energy Capacity in Scotland
from October 2005 to October 2010.

Where are we now?

Figure 1 shows the growth in onshore wind over the last
5 years, with capacity now exceeding 2GW and forming
the majority of Scotland’s 3.7GW of renewable generation.
Together, renewables met over a fifth of Scotland’s
electricity demand in 2008.
The renewables industry prides itself on maintaining a
responsible reputation; delivering crucial carbon cuts whilst
minimising local environmental impacts, improving habitats,
providing a range of benefits to local communities and
contracting local suppliers where possible.

The Scottish Government has set a target of meeting
80% of electricity consumption from renewables by 2020,
equating to around 12 GW of installed capacity, and we are
already on course to meet or exceed the interim target of
31% by 2011.
Although the sector has seen steady growth, it faces a
multitude of tough challenges if it is to continue delivering
the bulk of Scottish renewable generation. The sector is still
relatively new, with investment dependent on the retention
and stability of the Renewables Obligation (Scotland),
particularly in the current financial climate.
As the available areas of least constraint for onshore wind
decrease, development needs to adapt to find the best
way of achieving acceptable design in more sensitive
environments. Equally, however, the Scottish Government
must find a way of balancing competing policy agendas
to ensure that renewable energy can proceed to deliver on
these challenges.
Many of the challenges facing the industry represent a
common theme: the impact of outdated regulation that
does not fully take account of the national and European
obligations on renewable energy and climate change.

2 PAPER 3: onshore wind


what needs to change?
Regulation
As outlined in the following paragraphs, the regulatory
burden on onshore development is increasing, with a risk
that cumulative impacts may make some good projects
unviable. The Scottish Government is working with a
partnership of European countries to address barriers to
meeting Europe’s renewables targets within policy and
regulation. The Good Practice Wind1 project aims to develop
good practice in reconciling objectives on renewable energy
with wider environmental objectives to improve the policy,
guidance, process and practice of dealing with applications
for new renewable energy projects. This initiative is welcome
and requires application at a national level.
Finance
The recent economic climate has highlighted the
importance of investment in Scottish industries. Securing
funding for renewables projects is becoming more of a
challenge therefore reducing the potential for renewable
energy projects in Scotland. It is imperative that Scotland
maintains investor confidence through strong political
leadership to allow development of renewable projects.
Ongoing growth is dependant upon long term stability of
financial incentive mechanisms as the prime means of
driving forward renewable energy in the electricity market.
It is important to recognise the substantial business rates
paid by projects and the meaningful contributions made to
local communities.
Business Rates
The huge increase in rateable values for wind farms in
2010 was a shock to the industry, as rateable values were
only issued once the revaluation came into force and our
members are still awaiting detailed information on the
methodology used.
For the 2015 revaluation the industry needs a transparent
and timely process that provides fair and reasonable
rateable values for the renewables sector. We ask that
there is a clear timeline for notifying rates changes and
the methodology used is consulted upon. To assist we will
encourage members to provide relevant information at the
appropriate time.
1 Good Practice Wind Project, Scottish Government. http://www.scotland.gov.uk/
Topics/Business-Industry/Energy/Action/leading/Good-Practice-Wind
DRIVING THE
LOW CARBON
ECONOMY
Grid
The current UK grid network was not designed to support
renewable energy, with inadequate infrastructure for distributed
generation. Scotland is expected to deliver over 30% of UK
2020 targets of which onshore wind has a crucial part to play in
delivering the early stage of the targets in the build up to other
technologies becoming available. However without urgent
upgrades in grid this expectation will not be met.
The current volatility and unpredictability in charging is
another crucial factor in potentially hampering investment in
onshore wind in Scotland. The current Transmission Network
Use of System (TNUoS) model encourages generation to
be located close to demand and therefore discriminates
against renewables development; not least wind energy that
generally is strongest in areas of low demand.
To meet our targets Scotland needs the following: A
clear planning system for grid and wind farm projects, a
transparent, stable and long term charging mechanism, and a
system of balancing final sums liabilities, which is proportional
to the risk and size of the project. These two areas must be a
priority for Ofgem during the project TrasmiT review.
The delivery of the Electricity Network Strategy Group’s work
as strategic investment for delivery of renewable energy
targets is critical.
“Onshore wind power is now one of the
most mature and well proven renewable
technologies and will continue to make a
significant contribution to the delivery of
Scotland’s renewables targets. Policy makers
should encourage further deployment of
wind farms by streamlining planning and
incentivising take up at local level.”
Dr. Gordon Edge, Director of Policy, RenewableUK
Planning
Scottish Renewables has been pleased to see the drive
from Government towards a speedy, efficient and inclusive
planning system. This has undoubtedly assisted many
projects to achieve consent. There remains resistance to
these reforms from some local authorities, and we perceive
the risk that these councils may use supplementary guidance
to suppress the positive effects of Government policy, often
by a simple tactic for example of limiting turbine size.
It is critical that the Government use their powers to
monitor and call in plans which subvert their purpose. To
meet its 2020 targets the Scottish Government needs also
to positively provide resources for local authority planners
and planning committees. This funding would aid the
evolution of a more transparent and streamlined system
allowing planning authorities to deal with applications for
renewable projects more efficiently and fairly.
PAPER 3: onshore wind 3
DRIVING THE
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ECONOMY
Aviation and radar objections
A substantial number of wind farm projects, approximately
2.5GW, is currently being held up due to radar issues. The
wind industry is working closely with aviation stakeholders
and the Scottish Government to resolve the issue through
the South West Scotland Regional Aviation Solution Group,
chaired by the Scottish Government Energy Consents
team. This initiative is welcome, however at present these
constraints represent a serious threat to development
and the commitment to identify a long term industry wide
aviation solution.
In South Scotland the pre-eminent constraint to the
consenting of otherwise well planned onshore wind farms
are objections from aviation interests. The means to
overcome these constraints are well rehearsed, and need to
be put into practice urgently. We propose that consideration
needs be to given to upgrade and replace existing ageing
radar infrastructure in order to cope with the reflections
from wind turbines. We further believe that all parties should
be seeking to positively apply existing solutions.
Community Policy
The renewable energy industry in Scotland has a strong
track record of positive engagement with communities
from pre-planning right the way through to construction
and operation of projects. This includes sharing financial
rewards and in some cases project risks with communities.
The most successful examples of good practice are where
strong dialogue with communities has taken place early
and throughout the process. It is also where a flexible
and voluntary approach has been applied leading to
good partnership working and a strong bond between the
community and the renewables project.
Where are we going?
Scotland’s onshore wind industry will need to play
a crucial role in meeting our increased renewable
electricity target of 80% by 2020.
A greater challenge, however, will be reaching the Scottish
Government’s target of meeting 20% of all energy demand
by 2020. With challenges for both the heat and transport
sectors to decarbonise in this timeframe, it is expected
the electricity sector will have to take the lion’s share of
delivering this target.
Similarly, Scotland is likely to have to play a major role in
meeting the UK 2020 target of 15% of all energy use from
renewables, as the rest of the UK is starting from a much
lower base. Add in growing electricity demand and the
extremely challenging greenhouse gas emission reduction
4 PAPER 3: onshore wind
Any changes to this model, e.g. through standard
obligations on developers, could have a detrimental effect
on developments and could reduce the real benefits to
communities that projects provide.
Substantial community benefit is already being delivered
in Scotland from renewable energy projects through good
dialogue between communities and developers but further
progress can be made by;
• Enabling a proportion of business rates to be returned
to Local authorities from renewables project receipts to
make the wider economic benefits transparent;
• Avoid any approach which sees the bond between
project and community weakened through community
benefit contributions from developers being dispersed
by Local authorities;
• Build on strong but flexible dialogue early in the planning
system by strengthening pre-application consultation
requirements and extend for smaller projects.
Skills and Supply Chain
Investment in skills is required if we are to meet the plans
for the expansion of the renewables industry in Scotland.
This includes training of turbine technicians and experienced
engineers – this is crucial to ensuring that Scotland remains
an attractive option for investment as well as helping to
secure the growth of skilled careers in the industry.
Continued support is needed for science, technology,
engineering, postgraduate training and research excellence
relating to wind energy. Publicity of apprenticeship schemes
and the potential for jobs in wind energy should be given
more weight so people feel able to engage and understand
the career paths that wind energy can offer.
targets under the Scottish Climate Change Act, and the
task ahead for renewable electricity in Scotland becomes
much greater.
Although a bright future lies ahead for offshore wind, wave
and tidal power, the bulk of generation offshore is unlikely
to really take off until towards the end of this decade.
Continued growth of hydropower and bioenergy will make
up an important but relatively small proportion of the growth
in renewable generation.
This means that onshore wind will need to sustain
continued growth, delivering the bulk of generation required
to meet Scottish and UK renewable electricity targets, and
put Scotland on a sustainable path to making significant
reductions in carbon emissions.