Portfolio Question Time – in the Scottish Parliament at 2:00 pm on 16 January 2025.
To ask the Scottish Government what the current value of Scotland’s renewable energy output is to the UK economy. (S6O-04215)
The majority of electricity that is generated in Scotland is from renewable sources, and Scotland plays a crucial role in the United Kingdom’s overall renewable energy landscape. As of 24 September 2024, Scotland hosted 27 per cent of UK renewable electricity capacity. Following work that was undertaken in 2023, the Fraser of Allander Institute estimated that, in 2021, Scotland’s renewable energy sectors and supply chains supported more than £10.1 billion-worth of output, more than 42,000 full-time equivalent jobs and more than £4.7 billion of gross value added across the Scottish economy.
It is vital that we continue to maximise Scotland’s renewables capabilities and take full advantage of our abundant natural resources. How much electricity demand is met by renewables, and how will the proposed budget continue to invest in and grow that capacity?
In 2023, an estimated 64.7 per cent of the electricity that was consumed in Scotland came from renewable sources, but that percentage continues to grow. In quarter 3 of last year, for example, it had risen by more than 8 per cent compared with the same period in 2023.
The path to net zero presents enormous economic opportunities through supporting a just transition that creates jobs, promotes private investment and brings communities with us. The recent budget statement announced that, in 2025-26, we will commit £4.9 billion in capital and resource spend for activities that will have a positive impact on the delivery of our climate change goals. We will almost triple our capital funding for offshore wind, to £150 million. Such investment comes under year 2 of our five-year commitment to invest up to £500 million to anchor the supply chain in Scotland, which is expected to leverage £1.5 billion of additional private investment in the infrastructure and manufacturing facilities that are critical to the growth of the sector.
It has been two years since the Scottish Government unveiled its draft energy strategy and just transition plan. Russell Borthwick, the chief executive of Aberdeen and Grampian Chamber of Commerce, said:
“We’ve been promised numerous times since that the final version would be published but we are still waiting, strategy-less.”
The Scottish Government is asleep at the wheel, so when will the final strategy be published?
As I have said in many answers to similar questions from Conservative members, reserved policy in the area has been a shifting landscape, which has had an impact on some of our responses in our draft energy strategy. We are taking the time to look at that and, as the First Minister mentioned at First Minister’s question time, issues relating to the court cases, which have had an impact.
We want the energy strategy to be fit for purpose, and we are working and have been working very hard on it. We are taking into account all the consultation responses, and the strategy will be published shortly.
I can squeeze in question 8 if I get brief questions and brief answers to match.