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Displaying 1198 contributions
Net Zero, Energy and Transport Committee
Meeting date: 14 January 2025
Michael Matheson
I suppose that, for many projects, the developer will not make a consent application until it has clarity on grid timelines, because the grid is what glues it all together.
This is my final question. Has doubling the consenting resource in the Government, in order to deliver the funding outcomes in the budget, resulted directly in shortening of the consenting timeline? That increase in resource in the consents unit has already happened, so will you provide us with details of exactly what that doubling of the resource is getting us in relation to project timelines?
Net Zero, Energy and Transport Committee
Meeting date: 14 January 2025
Michael Matheson
Good morning. I want to pick up on securing supply chain manufacturing in Scotland. You referred to Sumitomo, cabinet secretary—I was the lead minister in pursuing Sumitomo’s investment. The key to securing that investment was not just the ScotWind and INTOG programmes and the pipeline that they will potentially create; it was also about the capacity to use programmes that are being taken forward in Scotland at pace, which allowed Sumitomo to make the investment. Once those programmes are completed, the company will be able to export to other parts of Europe. It was about pure manufacturing capacity being brought to the Cromarty Firth.
If we deliver ScotWind—although I suspect that there will be attrition in the overall level of energy that ScotWind will finally produce—despite where we are on offshore wind at present and the potential pipeline that we have, the operations and maintenance that are involved in offshore wind are nowhere near the levels in oil and gas. Therefore, manufacturing capacity is absolutely critical to delivering the just transition. However, on the four key components in offshore wind, we do not have a blade manufacturer, a cell manufacturer, a tower manufacturer or a foundations manufacturer, whether of fixed or floating foundations.
Although we are world leaders in creating ideas in floating offshore wind and in demonstrating that it can be done, if we innovate and invest in developing the ideas around it but do not secure the manufacturing capacity, we will lose huge potential for helping to deliver a just transition. I am keen to understand how your directorate and the enterprise agencies are working to nail down the scale of manufacturing capacity that will be critical to our delivering a just transition. Key to that will be not just innovation and ideas but the supply chain and creation of jobs in Scotland. Manufacturing capacity will be crucial in achieving that.
How do you see that progressing? What is in the budget that will ensure that we are on a pathway that will deliver the manufacturing capacity that will be critical for the supply chain?
Net Zero, Energy and Transport Committee
Meeting date: 14 January 2025
Michael Matheson
I announced the £80 million on the basis that we thought that track status was about to be announced. That was the intention behind it at the time.
We have touched on hydrogen, offshore and onshore wind, and carbon capture, use and storage. What provision has been made in the budget to help to support wave and tidal power? We are global leaders in the area and have huge potential, but the sector is extremely difficult to commercialise, in order to make sure that it starts to deliver at scale.
Net Zero, Energy and Transport Committee
Meeting date: 14 January 2025
Michael Matheson
Yes—
Net Zero, Energy and Transport Committee
Meeting date: 14 January 2025
Michael Matheson
Is it correct that some of the funding is for both deliberative and participative engagement programmes?
Net Zero, Energy and Transport Committee
Meeting date: 14 January 2025
Michael Matheson
Has the project been completed? Has it identified financial risk in particular policy areas?
Net Zero, Energy and Transport Committee
Meeting date: 14 January 2025
Michael Matheson
Has any financial risk been identified across those portfolios?
Net Zero, Energy and Transport Committee
Meeting date: 14 January 2025
Michael Matheson
That would be helpful.
You mentioned the £5 million that has been allocated to the community climate action hubs. I want to clarify what that funding is for. Is it specifically for climate hubs’ core funding, or is it money that has been given to the hubs to undertake deliberative and participative engagement processes? If so, how will that funding be broken down?
Net Zero, Energy and Transport Committee
Meeting date: 14 January 2025
Michael Matheson
I am aware of the Eyemouth development: I was fortunate enough to open it, when I was a cabinet secretary.
My next question will take you to confidence in the sector about using the money to deliver the outcomes that you are trying to achieve. I am keen to understand what the funding will be over two years. From where we are today, what will success look like in two years, when you are back before the committee and we ask you what that £150 million—or in excess of that, over two years—has delivered?
Key to that is confidence in the sector about consenting of projects, so that there is an on-going beat of projects that will attract manufacturing capacity. The budget funding is specifically for capital, with a small amount of revenue funding. Will any of it be used to ensure that we have sufficient capacity within the consenting elements of Government to ensure that there is a timely and effective process in place to deal with projects? I am sure that you are well aware of the on-going concerns about delays and the length of time that it can take for projects to be delivered, which creates uncertainty in the sector.
10:00Net Zero, Energy and Transport Committee
Meeting date: 14 January 2025
Michael Matheson
You doubled the resource in the consents unit last year.