What is the Economics & Markets?

Energy generation of all kinds costs money, and therefore requires access to available finance and funding to develop and build plant and to cover ongoing operational and decommissioning costs. Renewable energy is no different. Among renewables’ many benefits is that, compared to conventional thermal technologies, it does not produce harmful emissions or waste, and with the exception of biomass, has no fuel costs.

 

Why is the Economics & Markets Important?

Scotland possesses some of the world’s leading renewables resources, so it’s crucial that necessary market arrangements exist to support this emerging and strategically important industry. Renewables technologies are at different stages of commercial development; for example, onshore wind power is relatively mature compared to marine energy, so it is important that these individual technologies are supported at appropriate levels to ensure their future ability to deploy at scale and reap the benefits of economies of scale, learning rates and supply chain development. This will in turn drive down the cost of these technologies – and protect our energy prices from price fluctuations in the oil and gas markets.

What is SR doing?

Scottish Renewables works with its members and relevant governmental bodies to secure stable and effective financial support mechanisms to build and strengthen markets for emerging technologies, and allow the industry to attract the investment to meet or exceed energy targets. Scottish Renewables works with the both the UK and Scottish Government to deliver a proportionate, joined-up regulatory framework which fully recognises the role played by renewables in mitigating climate change, improving energy security and building a sustainable economy.

SR recent achievements in this sector

  • Commitment to Contract for Difference (CfD) uplift for the Scottish islands within Electricity Market Reform (EMR)
  • Enhanced Renewables Obligation (Scotland) band for ‘innovative’ offshore wind developments in line with SR’s asks.
  • Influenced the development of draft strike prices for CfD - with work continuing to ensure these are based on sound analysis and supported by contract terms which reduce risk sufficiently
  • Influenced the development of policy behind CfD contract terms – analysis published and letter sent to DECC with main conclusions highlighted
  • Improved DECC consultation on market access under EMR through joint letter with renewable trade bodies
  • Worked to achieve sight of methodology, key CfD inputs and assumptions within the draft Delivery Plan

Meet The Team

 

Michael Rieley is our Senior Policy Manager for Grid & Markets

E: [email protected]
T: 0141 353 4003