To ask the Scottish Government what measures are in place to encourage the development of new combined heat and power plants for industrial and commercial use.
Support is available for Combined Heat and Power (CHP) from a number of sources. Most are available to any organisation who wishes to develop Combined Heat and Power Plants (CHP), such as the main direct support mechanisms for renewable Combined Heat and Power (CHP): the Renewables Obligation (Scotland) and the UK Government’s Renewable Heat Incentive.
The Renewables Obligation (Scotland) gives 2 Renewables Obligation Certificates (SROCs) for every megawatt hour of electricity generated by biomass electricity generating plants with CHP. Following its recent consultation on changes to the Renewables Obligation (Scotland), the Scottish Government proposes to go further by setting an eligibility requirement for plants over 15 MW to meet good quality CHP standards to further drive uptake of CHP.
In the current Parliamentary session, finance for renewable CHP plants is also available through the £103 million Renewable Energy Investment Fund. Finance for both renewable and non-renewable CHP is available through the £5 million District Heating Loan Fund. The District Heating Loan Fund has limited grant funding available for technical feasibility studies. These schemes fund a range of renewable heat-only, CHP and district heating projects and are open to commercial and industrial organisations, large institutions and Universities.
The uptake of CHP depends largely upon the availability of markets for heat. The Scottish Government is working with local authorities to help them identify suitable locations and support planning for CHP and district heating through its Heat Mapping Programme. The heat maps help identify, plan for and maximise opportunities for local heat use and to support investment decisions on strategic heat infrastructure. The maps will not only benefit local authorities, but can also support feasibility work of developers or local communities.
Feasibility support for the development of anaerobic digestion (AD) facilities by communities, industrial sites and the NHS is also available from Zero Waste Scotland. Zero Waste Scotland is also planning to offer financial support for AD development in remote and island communities in 2013-14.
From April 2013, the new Resource Efficient Scotland programme will provide advice and support to businesses, third sector and public sector organisations to reduce overheads through implementation of energy, material resource and water efficiency improvement measures, and in doing so it will help cut carbon across public and private sector organisations. The programme will also provide a suite of sector-focused activities tailored to meet the specific needs of particular business and public sector across Scotland in order to deliver resource efficiency savings.
Scottish Further and Higher Education establishments have also been access specific funding schemes:
Since 2008, Salix Finance have managed a £5 million revolving loans fund on behalf of the Scottish Government to fund low carbon investment projects in Scottish Further and Higher Education establishments.
In 2012, the Scottish Funding Council set up a Programme to fund a small number of large-scale carbon reduction projects in Scottish universities, with funding of up to £20 million over the next two years.