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Applications are considered on a project by project basis and net jobs are an important factor in the socio- economic assessments conducted for each project.

Assessment of the economic benefit of National Renewables Infrastructure Fund will follow standard Treasury Green Book guidance.

The Renewable Energy Investment Fund was capitalised with £103 million to be distributed over the current spending review period (2012 - 2015). That is still the intention. The annual spend will reflect the needs of industry and community developers.

Projects supported by Scottish Enterprise or Highlands and Islands Enterprise develop a Monitoring and Evaluation framework, which follows Treasury Green Book approach. Overall at a programme level Scottish Enterprise and Highlands and Islands Enterprise monitor milestones that have been identified as forming the critical path to the realisation of the 28,000 jobs estimate.

A number of key milestones relate to actions which are outwith the control of Scottish Enterprise and Highlands and Islands Enterprise, such as electricity market reform, consents for site development, grid connections and financing of offshore wind projects. Scottish Enterprise and Highlands and Islands Enterprise work with a range of stakeholders to articulate the need for progress on these issues.

Scottish Enterprise and Highland and Islands Enterprise follow Treasury Green Book guidance in assessing ex ante economic benefit of investments. Each project supported has been assessed accordingly.

The fund will disburse £103 million over the spending review period; with flexibility on the annual spend to reflect industry needs. The indicative allocation for 2012 -13 was £16 million, based on the prospect of a significant investment in the marine sector. Actual spend is anticipated to be some £1.8 million.

In terms of the wider picture of investment into the renewables industry more generally Scottish Renewables have recently published an assessment of investment into renewables in 2011. This is based on the capacity installed in each technology multiplied by estimates of capital cost per Mega Watt. Their analysis shows projects with a total capital cost of £757.2 million were commissioned in 2011. Similar analysis for the first nine months of 2012, shows that this exceeded over £1.3 billion.

Scottish Renewables also undertook more detailed assessment of investment into offshore wind and this research shows that £164.5 million has been invested in the Scottish economy by the six companies currently developing offshore wind projects in the Scottish Renewable Energy Zone with more than one third of this investment (£63.66 million) delivered in 2012.

The phasing of expenditure on the REIF will reflect the needs of industry and community developers. Scotland is enjoying record activity and investment in renewable energy. We exceeded our interim target to generate 31% of our energy requirement by 2011 by some 4%. Scottish renewables have shown that investment in Scotland’s renewable energy industry topped £900 million pounds in the first six months of 2012, putting it well on track to reach £1 billion over the course of the whole year.

All applications to REIF are assessed for their additional socio- economic impact through consideration of the scale and nature of benefits, (renewable energy generated/ electricity decarbonised, Gross Value Added/ jobs created, community benefits and private investment levered), the extent to which these benefits are additional, (i.e. would not be realised in the absence of REIF monies), supply chain benefits, the concentration of benefits within Scotland and the effect on existing economic activity.