Allan Kelly

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Slide1: 

Future Delivery of Renewable Energy Hagshaw Hill Windfarm

Agenda: 

Agenda Introduction to ScottishPower The Drive for Renewables ScottishPower’s Approach to Development Issues for Future Success

Slide3: 

Turnover of £6 billion in 2003-04 Market capitalization of £7 billion Vertically integrated in US and UK 14,000 employees Supplying 6 million customers (5 million UK) Strong CSR track record Introduction to ScottishPower

ScottishPower’s Windfarms: 

Leading developer of windfarms 158 MW current capacity 1000 MW in planning / under construction including: Black Law 143 MW Whitelee 322 MW Harestanes 213MW ScottishPower’s Windfarms

Development Strategy: 

Development Strategy Key Aims: Secure 1000MW total renewables by 2010. Focus on wind power, especially onshore. Prioritise in-house development control development process Evaluate other renewable technologies position ourselves for their future expansion.

Agenda: 

Agenda Introduction to ScottishPower The Drive for Renewables ScottishPower’s Approach to Development Issues for Future Success

Global Climate Change: 

Global Climate Change Climate Change is happening now, and is accelerating: Arctic ice has thinned by 40% in recent years Global snow cover has decreased by 10% since 1960 Seabird colonies have suffered complete breeding failure The UK’s climate is becoming more extreme

Renewables Obligation: 

Renewables Obligation TARGETS Obligation on suppliers Percentage ramps from 2003(3.2%) to 2010(10.4%) Requires 800MW new renewables by 2010 (UK 7GW) Likely further increase to 15.4% by 2015 INCENTIVES ROC’s tradeable UK-wide Penalty for non-compliance of 3p/kWh Total ROC value ~4.5p/kWh in 03/04 No discrimination between technologies

Why Wind Power?: 

Why Wind Power? Large resource Proven and reliable technology Cost-effective Short construction timescale Early jobs creation potential (e.g. Machrihanish) Strong political support

Agenda: 

Agenda Introduction to ScottishPower The Drive for Renewables ScottishPower’s Approach to Development Issues for Future Success

Slide11: 

Distinctive Approach Local consultation In-house expertise thorough environmental impact assessment optimise windfarm designs choose the right technology understand grid connection requirements Adding value to windfarms Forming strategic partnerships

Slide12: 

Consulting with Local People Consult early and widely Best practise shown by independent evaluation Setting best practise in scoping

Slide13: 

In-House Expertise ScottishPower involved in windfarms since 1990’s Corporate commitment to developing the business: over 50 dedicated staff Leading team of experts including engineers, planners, environmental scientists, windfarm ecologist Individual projects taken from development and construction through to operation. Leading experience of large scale windfarm developments such as Whitelee 322MW and Black Law 143MW

Slide14: 

Environment Sustainable Development Windfarm Policy Benefiting local wildlife e.g. £2m Habitat Management Plan, largest in UK, at Beinn an Tuirc windfarm for Golden Eagles Economy ScottishPower’s encouragement was key to Vestas setting up their Machrihanish factory Working with LECs to maximise local benefit from investing over £1 billion in renewable energy over coming years Community Industry leading approach to maximising community benefits Adding Value to Windfarms

Slide15: 

Recreation & Tourism Existing uses of Ae Forest include walking, horse riding, cycling & dog sledding Windfarm plans will enhance access Sponsors of Husky Dog sled UK championships, Drumlanrig Castle

Slide16: 

Investment & Jobs Vestas Machrihanish factory 200 jobs Remote rural community with high unemployment

Slide17: 

Community Trust Funds ScottishPower pioneering a region-wide approach Regional funding channelled through local agency (e.g. Energy Agency) Tied to output as opposed to capacity Concordat agreed with Argyll and Bute Council Working with other Councils

Slide18: 

Strategic Partnerships Forest Enterprise Scotland National agreement, Sharing knowledge Site specific terms for individual sites Vestas/Siemens Framework Agreements Long term mutually beneficial agreements (5 years) Understanding shared on key stakeholder deliverables (local benefits) SW Local Enterprise Companies Renewables industry supply network Economic impact assessment of wind development Environmental NGOs Standards on site selection and consultation

Agenda: 

Agenda Introduction to ScottishPower The Drive for Renewables ScottishPower’s Approach to Development Issues for Future Success

Issues for Future Success: 

Issues for Future Success Political support for a sustained Obligation Effectiveness of planning system Timescales; success rate Maximising jobs and economic benefit Resolution of radar and MoD issues Extension/reinforcement of the Scottish grid Transmission access charging Rates for renewable plant Performance of the new renewable technologies

Slide21: 

Alternative Technologies Wave Power

Summary: 

Summary Scotland is a renewables rich country with significant potential for development of the resource. The targets can be met, but further action is required from government. In particular, urgent action is required in relation to: Local authorities’ planning process Expansion of the grid & Transmission charging Development of marine technologies ScottishPower have an ambitious expansion plan for renewable energy underway and we will continue to play our full role in assisting government with its objectives.