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Scottish electricity supplies are currently considered secure. Security of supply is currently provided by a combination of large scale hydro, gas and nuclear power stations as well as the capacity to import electricity from elsewhere in the UK.

Maintaining a secure electricity supply will require increased investment in networks, greater interconnection to the rest of GB, growing electricity storage capacity (in particular pumped storage hydro), and other forms of low carbon generation. The Scottish energy strategy, published in December 2017, confirmed the Scottish Government’s continued opposition to new nuclear stations under current technologies. Our priority continues to be to support energy efficiency, develop Scotland’s huge renewable resource and to promote storage and flexibility.

We understand that the UK Government's Heat Pump Ready funding programme will be open to businesses across the UK and our enterprise agencies have highlighted this funding opportunity to companies based in Scotland. We will carefully consider any further funding requirements for heat pump innovation in our Heat in Buildings Supply Chain Delivery Plan, to be published next year.

Plans to create and provide training courses to support the heat in buildings strategy:

Working with industry, we have developed a set of installer skills requirements to help professionalise services in the sector, and provide clearer career pathways for young people. We consulted on these earlier this year and we are now integrating these requirements into the relevant industry standards.

We anticipate that the heat in buildings transition will require a substantial growth in supply chains, particularly in the availability of skilled heating and energy efficiency installers. However, the specific scale and timing of the required workforce growth will depend on a range of factors including the changing demographics and supply chain demand across the construction sector.

We have partnered with Scottish Renewables and Skills Development Scotland to undertake a ‘Heat in Buildings Workforce Assessment Project’ which will help us define the timing of workforce growth and how best to support people transitioning into key roles. This work will report back in Spring 2022. This will improve our understanding on how best to support workforce investment and ensure that jobs will be available for people to move into as they complete their training.

Ensuring that colleges and schools have sufficient trained professionals to teach the skills required to deliver the strategy:

At the end of 2020 the Scottish Government and Skills Development Scotland published the Climate Emergency Skills Action Plan, (CESAP) setting out the actions we need to take to ensure our workforce is able to support the transition to net zero.

The launch of the Green Jobs Workforce Academy also demonstrates our commitment to providing accessible information on training opportunities and skills transferability to job seekers.

Gathering and communicating data on the demand for green jobs will be crucial in developing and delivering the right skills interventions at the right time. As part of the ongoing CESAP Implementation, Skills Development Scotland and the Scottish Funding Council are currently reviewing training provision in the context of our Heat in Buildings Strategy. The results of the workforce assessment project, detailed above, will serve as an evidence base for this review.

Encouraging potential students to undertake relevant heat in buildings training:

The Modern Apprenticeship (MA) is the key pathway for young people into the heating and plumbing industry. The Scottish Government provides a contribution towards training for Modern Apprenticeships through Skills Development Scotland. The public funded training contribution is structured by age and level, and prioritised to support outcomes within the Scottish Government’s skills and economic strategies.

In addition to the apprenticeship pathway, our National Transition Training Fund aims to tackle the rise in unemployment caused by Covid-19 by offering short sharp training opportunities for people to learn in-demand skills. Projects this year include funding for Historic Environment Scotland, which will deliver training on retrofitting pre-1919 buildings, while the Construction Scotland Innovation Centre (CSIC) will support the delivery of training on Passivhaus construction and retro-fit.

Cost and support to Local Authorities:

Local Authorities do not have a specific role in the provision of training through the modern apprenticeship framework. However, we are keen for Local Authorities to play a constructive role in supporting the supply chain growth required to deliver our Heat in Buildings Strategy.

We will work with Local Authorities in the development of our Heat in Buildings Supply Chain Delivery Plan, to be published next Summer, and consider any role they might have in supporting training provision as part of this work.

There is a range of projections as to how far heat pump costs can be brought down, set out in various recent publications by BEIS and the Climate Change Committee.

The Scottish Government is committed to working with the supply chain to maximise cost reductions, and to leverage economic opportunities for Scottish businesses and communities. We have committed to invest at least £1.8 billion over the course of this parliament to kick-start market growth, and will work with industry to co-produce a new ‘Heat in Buildings Supply Chain Delivery Plan’ by Summer 2022. In addition we have been working with the heat pump industry to explore the potential for Heat Pump Sector Deal for Scotland, and will respond to the forthcoming recommendations of an advisory group at the earliest opportunity.

The Scottish Government is considering a number of options as solutions to replacing gas boilers and recognise that that, for a small number of buildings, bioenergy and in particular bio heating oil, bioLPG and biomass may prove to be the only practicable option for heat decarbonisation. However, it is likely that these properties will be in off gas grid areas.

Heat pumps and Heat Networks are widely used in other European countries and have been identified as near term priorities for replacing gas boilers in Scotland as set out in our recently published Heat in Buildings Strategy.

Regarding support for heat pumps, I refer the member to the answer to question S6W-02397 on 9 September 2021. All answers to written Parliamentary Questions are available on the Parliament's website, the search facility for which can be found at https://www.parliament.scot/chamber-and-committees/written-questions-and-answers

Heat networks are also a key strategic zero emissions heat technology. The Competition and Markets Authority found that up to 90% of heat network customers enjoy similar, or lower, bills than those with standard gas boilers and heat networks can cut both emissions and bills.

Hydrotreated Vegetable Oil (HVO) fuel, like other bio fuels, is dependent on there being a sustainable supply of feedstock, and there remain concerns about lifecycle emissions. Further research is therefore required before Scottish Government could commit to any particular bio fuel. Scottish Government’s aim is to see bioenergy used where it has the greatest value in reducing emissions. However this decision is also dependent on lifecycle emissions and which sectors will make the best use of the bioenergy feedstocks. Emerging technologies and the push to decarbonise across the economy may also create new demands on these finite resources.

We intend to publish a Bioenergy Action Plan in 2023 which will set out a strategic framework for how the available biomass resources and technologies can be used to best effect.

The Home Energy Scotland loan scheme provides up to £15,000 for energy efficiency measures and up to £17,500 for renewables measures (maximum of two). Registered private landlords owning five or fewer properties will be eligible for interest free loans, and owners of six or more properties will be subject to interest at a rate of 3.5% APR. Homeowners are eligible for interest free loans as well as 75% cashback up to £7,500 for renewable heat measures, and an enhanced 40% cashback for energy efficiency measures up to £6,000. In 2022-23, we will replace current cashback arrangements with a grant scheme.

In addition the Scottish Government’s fuel poverty schemes have adopted a “zero emissions first” approach. Warmer Homes Scotland enables eligible households to receive energy efficiency and heating improvements, including an increasing number of heat pumps. Our local authority-led Area Based Schemes provide energy efficiency improvements to households in or at risk of fuel poverty living in their own home or a private rented property, leveraging Energy Company Obligation (ECO) finance and private investment.

These schemes form part of our broader investment package. We have committed to invest at least £1.8 billion over the course of this parliament to kick-start market growth and support those least able to pay.

In addition we are working to develop an appropriate market framework to help consumers overcome the upfront investment costs and to attract and secure further private investment and finance to help meet the costs of the transition. We will establish a Green Heat Finance Taskforce by the end of 2021 to recommend ways the Scottish Government and private sector can collaborate to scale up investment.

Alongside the development of the Heat in Buildings Strategy, the Scottish Government worked with stakeholders to undertake a series of impact assessments including a Fairer Scotland Duty (FSD) assessment and an Islands Communities Impact Assessment (ICIA) both of which consider remote and rural communities. We will publish these shortly and will take the findings into account as we deliver on the full range of actions set out in the Strategy.

In the Heat in Buildings Strategy we committed to undertaking research to understand the extent to which the deployment of secondary technologies alongside zero emissions heating systems could help to optimise operational performance, minimise energy consumption and reduce end user fuel costs. This research is underway, and seeks to understand the technical feasibility and cost effectiveness of heat batteries, electric batteries, and thermal storage cylinders when installed alongside a range of zero emissions primary heating technologies; both independently of and in conjuncture with microgeneration technologies such as solar PV and solar thermal. We expect to publish this research in early 2022.

The Heat Networks (Scotland) Act 2021 has set out ambitious targets for heat network deployment, requiring 2.6 terawatt hours of output by 2027 and 6 terawatt hours by 2030.

To help meet these targets, the Scottish Government will invest £400 million over the next five years in large-scale heat decarbonisation infrastructure through the successor scheme to the Low Carbon Infrastructure Transition Programme (LCITP). However, we cannot rely on public investment alone to fund the development of low carbon heat networks in Scotland and government support must be used to leverage private investment into heat networks if the targets are to be met. The LCITP provided grants for up to 50% of project capital costs with the remainder being match funded and the successor programme is likely to take a similar approach. Financial mechanisms such as the Green Growth Accelerator will also be key in stimulating investment.

The regulatory system laid out within the Heat Networks (Scotland) Act will play an important role in boosting confidence in the sector and providing greater certainty for investors. For example, the Act provides for the award of Heat Network Permits which will provide investors greater assurance over the potential customer base available, helping lower investment cost.

Detail on how we will meet the ambitious heat network targets will be provided in the Heat Networks Delivery Plan, which we will publish for consultation in due course.