Energy Policy - Subject Profile

Author: Alasdair Reid & Andrew Feeney-Seale

PDF Published: Friday 10 Sep 2021 (SB 21-61)

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Overview
Report

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Overview
Report
- Summary
- Introduction - sources and pathways
- Scotland's Energy Mix
- Policy Context
  - Global
    
    Post-Brexit Framework
  - UK Policy Framework
    
    Fossil Fuels
    
    Oil and Gas
    
    Decommissioning
    
    Coal
    
    Hydrogen
    
    The Nuclear Option
    
    Supporting Low Carbon Electricity Generation
    
    Large Scale Generation
    
    Small Scale Generation
    
    Supporting Renewable Heat
    
    Retail Markets and Affordability
    
    Demand Reduction
    
    Transport
  - Scotland
    
    Scotland's Energy Strategy
    
    Key Targets
    
    Key Issues and Scrutiny of Scotland's Approach
    
    Renewables
    
    Supply Chain
    
    Just Transition
    
    Demand Reduction
    
    Energy for Electricity
    
    Energy for Heat
    
    Energy for Transport
    
    Negative Emissions Technologies
Sources

Energy policy has to try to solve numerous paradoxes of supply and demand - like a Rubik's Cube, the challenge is to manage horizontal (energy), vertical (industrial) and spatial (regional) positions, where policies and actions to address a pressing issue on one plane have potentially detrimental impacts on another.

Image: Figure 1: Competing Issues of Energy Policy

In 2019 the majority (86%) of electricity was generated by low carbon sources (including nuclear), with the remainder coming from fossil fuels (13%), predominantly gas.

Image: Figure 4: Scottish Electricity Generation by Fuel 2019

The Scottish Government proposes a three phase approach to transition from grey hydrogen to green hydrogen. During the 2020s, blue hydrogen projects should scale up. Phase two in the 2030s will use abundant offshore wind generated energy to scale up hydrogen production for domestic use, while by 2045 phase 3 will see the development of infrastructure to export hydrogen.

Image: Figure 2: Scottish Government's proposed transition to a hydrogen energy economy

The market price of electricity fluctuates. Contracts for Difference work by smoothing this and ensuring that low carbon generation receives a guaranteed price, regardless of market price.

Image: Figure 3: How CfDs Work

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Last Updated: 12/3 1:42pm

Image: Figure 1: Competing Issues of Energy Policy

Image: Figure 4: Scottish Electricity Generation by Fuel 2019

Image: Figure 2: Scottish Government's proposed transition to a hydrogen energy economy

Image: Figure 3: How CfDs Work

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