Seòmar agus comataidhean

I refer the member to the answer to question S3W-15700 on 10 September 2008. All answers to written parliamentary questions are available on the Parliament''s website, the search facility for which can be found at http://www.scottish.parliament.uk/webapp/wa.search.

I refer the member to the answer to question S3W-15704 on 10 September 2008. All answers to written parliamentary questions are available on the Parliament''s website, the search facility for which can be found at http://www.scottish.parliament.uk/webapp/wa.search.

Market indicators have suggested that electricity generated from renewable sources often attract price premiums in excess of the Climate Change Levy. The request for information exercise was a structured process to gather information from the market to ascertain the extent of suppliers charging premiums and the likely levels of any such premiums.

It has been estimated that the impact of renewable premiums on the electricity contract currently out to tender could be as high as 10%. Renewable premiums are subject to the balance of supply and demand at any particular time and the position will only become clear when tender responses are received.

Information gathered from market sources has indicated that specifying specific quantities of renewable electricity can lead to reduced competition. The upturn in demand for renewable electricity has resulted in reduced quantities being readily available leading to an increased risk that few, if any, suppliers could meet a large demand from the Scottish public sector.

The national contract tender contains provisions to ensure that access to renewable electricity is not dependent on the renewable supplies available from any particular supplier at the time of submitting their tender. Innovative contract terms will ensure that other sources of supply can be accessed as necessary.

The Scottish ministers'' high level output specification (HLOS) was published in July 2007 and specified ministers'' requirements for the rail network from April 2009 to March 2014. The HLOS makes clear that Network Rail require to pursue continued improvements to operational and financial performance, including improved resilience. The public funding available to support the HLOS includes an appropriate element for the continued maintenance of the Scottish rail network.

The tender for the national contract has requested details from prospective suppliers for the energy management measures which they could provide to support the Scottish public sector. Examples given in the invitation to tender are:

Access to energy management information

On-line energy management tools

Energy efficiency audits

Site assessment for suitability of embedded generation.

Further clarification on what these measures could include will impact on the tender and subsequent evaluation processes. It is therefore inappropriate to comment further at this point in time.

Market participants were requested to provide information on a number of issues. The list was in no specific order.

Market indicators have suggested that the demand for renewable electricity has significantly increased as both public and private sector organisations have sought to demonstrate green credentials. This has resulted in supplies of renewable electricity being constrained in the market place both in terms of total availability and the quantities available from individual suppliers. The request for information process therefore sought information from the market on availability of renewable electricity to inform the strategy for the national electricity contract for the Scottish public sector.

The Scottish Government is already providing a tremendous incentive for the renewables industry to build new renewable generating capacity via our renewables obligation on all Scottish electricity suppliers. Recent information has highlighted that renewable or green electricity tariffs for renewable electricity do not lead necessarily to the production of additional electricity from renewable sources.

Rather than paying what is likely to be a significant price premium for green electricity within the current tight financial settlement, the Scottish Government will divert resources towards energy management measures for its own estate, which will help protect the environment while reducing costs in the medium term via reduced electricity consumption.