Letter from the Minister for Zero Carbon Buildings, Active Travel and Tenants’ Rights, 26 October 2021
I am writing to inform you of our progress towards meeting our renewable heat target. In 2020, useful renewable heat generated in Scotland was equivalent to 6.4% of fuels (other than electricity) consumed for heat across buildings and industry. This is down from 6.6% in 2019. This reduction in renewable heat was largely due to reduced output from large biomass systems at industrial sites, and should be seen in the context of a difficult year for the Scottish economy due to the pandemic. Please note, data improvements have led to a slight revision to the 2019 figure since last year’s update.
Reaching 6.4% renewable heat means we missed the 11% target, and is clearly disappointing. Deployment of renewable heat has seen challenges over the past decade. For example, the delay in introducing tariff guarantees for the Renewable Heat Incentive resulted in uncertainties for businesses in Scotland and delays to investment in new capacity. Challenges to deployment have been accompanied by outturn data on higher than anticipated demand that indicate that around a third more non-electrical fuel is consumed for heat than had been anticipated in 2009.
Beneath the headline statistic we see continued growth in the deployment of building-level renewable heat systems, particularly heat pumps. The Heat in Buildings Strategy, published earlier this month, makes clear we must accelerate deployment of zero emissions heat technologies so that by 2030 over 1 million homes and the equivalent of 50,000 non-domestic buildings are converted to zero emissions heat. The Heat in Buildings Strategy sets out an ambitious policy package to achieve this, including our commitment to invest at least £1.8 billion over the course of this parliament to help kick-start growth in the market and support those least able to pay; our intention to bring forward legislation, subject to consultation and to limits on devolved competence, that provides the regulatory framework for zero emissions heating and energy efficiency; and actions to expand our work with the supply chain to create new investment opportunities and create and support high value, local jobs.
We are maximising effort in devolved areas, but there are limits to what we can achieve on our own and critical policy areas remain reserved to the UK Government. While the UK’s new Heat and Buildings Strategy includes measures which will complement the comprehensive support package already available in Scotland the overall plan for action does not go far or fast enough. We will continue to work with the UK Government as it implements its strategy and call on it to accelerate action to support and enable delivery in Scotland, such as reforming the energy markets and amending the Gas Act.
The Update on Renewable Heat Target and Action 2021 report, will laid before Parliament on 27 October 2021.
This fulfils our obligation under Section 62 of the Climate Change (Scotland) Act 2009, to report on progress towards our renewable heat target.