FM calls for assessment of electricity supply

Scotland’s first minister Nicola Sturgeon has called for an assessment of the country’s electricity supply.

The call to the UK government comes after energy experts voiced concerns over the future of thermal generation plant in Scotland.

Scotland is a substantial net exporter of power to the rest of the UK, with 28 per cent of all Scottish generation exported in 2013. However, the energy security is said to be compromised by high transmission charges as well as the absence of a regional capacity assessment and powers which would allow a separate reliability standard to be set. For example, Scottish generators, including Longannet, account for around 12 per cent of the capacity connected to Britain’s high-voltage electricity network, yet pay around 35 per cent of the charges.

Ms Sturgeon has now written to prime minister David Cameron outlining her concerns.

She said: “It was clear from the meeting of the Scottish Energy Advisory Board today that industry experts are concerned about security of supply in Scotland and across the UK, and for the continued maintenance of electricity supplies in a robust manor. These issues need to be assessed and that is why I am calling on Prime Minister David Cameron to act.

“It is vital that the UK Government fulfils its statutory responsibility to monitor security of supply issues and does so in an open and transparent way. The actions we have proposed would enable proper public scrutiny of the situation in Scotland.”

Copy of letter from First Minister to Prime Minister David Cameron.

Dear David

The Scottish Energy Advisory Board, a panel of leading industry and academic experts that advise Scottish Ministers, met today to review the situation of security of electricity supply.

You will be aware the margin of spare capacity in the GB electricity system has diminished substantially in recent years to its lowest level in a generation, exerting upward pressure on the price of electricity.

Allowing the quantity of reserve energy to fall in this way is extraordinarily risky and fails the first duty of energy policy – to demonstrate that the system is secure and can meet consumers’ electricity needs at all times and under all circumstances.

Scotland is a substantial and reliable net exporter of power to the rest of the UK, with 28 per cent of all Scottish generation exported in 2013, helping to keep the lights on and bills down across these islands. Thermal generation plant in Scotland, including Longannet power station, plays a significant role in both delivering affordable electricity and system operability, as well as making a significant contribution to Scotland’s economy. The Scottish Government is clear that clean thermal generation will be required in the future as part of a diverse energy mix as we transition to a lower carbon economy.

However, our ability to continue to bolster the UK’s energy reserve is being undermined progressively by two factors: (i) high transmission charges that penalise generators based in Scotland and (ii) the absence of dedicated analysis and a separate reliability standard for Scotland.

To preserve viable options for the future, including the development of carbon capture and storage technology, we need to avoid the early closure of Scotland’s conventional thermal plant. Without careful management of existing capacity market dynamics could effectively close-off options that ought to be kept alive in the interests of system security, flexibility and energy affordability.

I am seeking your reassurance that the UK Government is fully cognisant of the unfolding capacity situation and understands the key role that Scottish capacity plays in ensuring adequate levels of energy security for the whole of the UK.

The Scottish Government cannot accept a situation where levels of energy security in Scotland are compromised by energy policy and network operation decisions taken outside Scotland. It is for this reason we ask the UK Government to initiate a dedicated capacity assessment for Scotland, informed by stakeholder views, and take steps to transfer to the Scottish Parliament the authority to set our own national reliability standard for electricity. Together these measures would help to create the conditions necessary to incentivise investment in new thermal capacity in Scotland.

In parallel with this letter, Energy Minister Fergus Ewing will seek urgent talks on Scottish energy security with Steve Holliday the Chief Executive of National Grid. I am copying this letter to SEAB’s co-chair, Professor Sir Jim McDonald, and the Coalition’s Energy Secretary, Ed Davey.

NICOLA STURGEON