Scottish Government do not (a) incentivise (c)inhibit or (d) discriminate against community owned energy providers. Scottish Government conduct all procurement in accordance with the Procurement Reform (Scotland) Act 2014 and the Public Procurement Regulations. Under Section 8 – General Duties of the Act, procurement authorities must:

“in carrying out a regulated procurement—

(a) treat relevant economic operators equally and without discrimination,

(b) act in a transparent and proportionate manner.”

To actively incentivise or discriminate any provider or group of providers would be a clear breach of the requirements of the Act.

The framework terms and conditions do (b) facilitate self generating sources to approach the Supplier, and there is a mechanism in the Terms and Conditions for local authorities to approach EDF to sell electricity which they have generated. The Framework also has included the option of Power Purchase Agreements.

The terms and conditions state that for the Supply of Electricity from a self-generating source the Supplier shall enter into a Power Purchase Agreement with such Scottish Public Sector Body on normal commercial terms. Such purchase shall stand entirely separate to the arrangements under the Framework and the Supplier shall not be under any obligation to sleeve the electrical output of such Public Body’s facility into the supply of electricity under the framework.

The Supply of Electricity agreement has also included the options of 6 different Power Purchase Agreement variations as part of the Statement of Requirements and the Terms and Conditions, these include.

Option 1 - A PPA entered into between the Scottish Government (Authority) and a third party generator. The generator is not a Client under the Framework. (Direct PPA)

Option 2 - A PPA entered into between the Contractor and a third party generator. The generator is not a Client under the Framework. (Indirect PPA)

Option 3 - A PPA entered into between the Scottish Government (Authority) and a generator. The generator is a Client under the Framework ( for example a Local Authority). Under this category of PPA the power sleeved into the Framework volume for use by the entire portfolio

Option 4 - A PPA entered into between the Contractor and a generator. The generator is a Client under the Framework. Under this category of PPA the power sleeved into the Framework volume would be for use by the entire portfolio.

Option 5 – : Export PPA where Client under the framework sells excess volume to the Contractor

Option 6 (as advice only) - Private Wire. This category is distinct from any of the above as it involves a direct physical connection between the generator and the buyer.

Overall the National Framework for the Supply of Electricity includes a statement of requirements and Ts and Cs which are agreed by the User Intelligence Group made up of public sector representatives (including representatives from local authorities). They have set out that the framework supplier needs to ensure it has the capacity to secure forward purchases on behalf of all framework customers. The Supplier also needs to account manage each individual customer organisation including billing, invoicing, meter reading queries, complaints, energy efficiency queries, and social value programmes within the framework. As well as managing the consumption for over 30,000 meters for electricity that are part of the portfolio. Therefore the supplier needs to have capacity to trade large volumes and achieve Value For Money for the whole Scottish public sector.

All of these aspects have been set out as well as the options of Power Purchase Agreements and the mechanism for local authorities to approach the Supplier to sell the power which has been self-generated.

Within the National Electricity Supply Framework no power is procured from community – owned energy providers.

The framework has been set up to supply electricity to all of the Scottish Public sector. The supplier on the framework is required to purchase power on the futures market through a risk managed hedging strategy. The strategy is owned by a Risk Management Committee who represent all of the main Public Sector bodies.

The framework supplier needs to ensure it has the capacity to secure forward purchases on behalf of all framework customers. The supplier also needs to account manage each individual customer organisation including billing, invoicing, meter reading queries, complaints, energy efficiency queries, and social value programmes within the framework. As well as managing the consumption for over 30,000 meters for electricity that are part of the portfolio. Therefore, the supplier needs to have capacity to trade large volumes and achieve Value For Money for the whole Scottish public sector.

The National Electricity Framework is used by all sectors including, Local Authorities, NHS bodies, Universities and Colleges, Central Government inc NDPBs and agencies, Housing Associations, Charities etc. The split of % usage of the electricity framework is as follows:

The Green Industrial Strategy recognises ports are key enablers for the energy transition. Ports have a critical role to play in supporting the growth of Scotland’s offshore wind sector and growing our hydrogen production and export capabilities, which are two of the five priority opportunity areas identified in the strategy.

The Scottish Government is engaging and collaborating with ports on the opportunities from offshore wind and engaging with key industry bodies including the recently formed Scottish Offshore Wind Ports Alliance (SOWPA) and the British Ports Association’s Scottish Ports Group.

The Scottish Government is working closely with both Inverness and Cromarty Firth Green Freeport and Forth Green Freeport which will play a crucial role in our commitment to a just transition to net zero, by creating clusters of high-tech manufacturing excellence in low carbon sectors, including offshore wind and renewable hydrogen.

The Green Industrial Strategy recognises ports are key enablers for the energy transition. Ports have a critical role to play in supporting the growth of Scotland’s offshore wind sector and accelerating investment in related infrastructure, manufacturing and fabrication. Ports will also play a key role in growing the hydrogen sector to facilitate the export of hydrogen and hydrogen products to external markets in the UK and in Northern Europe. Both Wind and Hydrogen are priority opportunity areas identified in the GIS.

We committed to publishing the Green Industrial Strategy in summer 2024. The strategy was published on 11 September, following summer recess and the launch of the 2023-24 Programme for Government.

The strategy aims to ensure Scotland gets the maximum possible economic benefit from the opportunities created by the global transition to net zero and we are already getting on with delivering across the five opportunity areas, and wider system enablers identified in the strategy. For example, the Scottish Government is driving forward the recommendations of the First Minister’s Investor Panel to attract global capital investment around the physical infrastructure needed to achieve our energy transition. On skills, funding has been allocated to support industry-led development of the energy skills passport; to create an energy transition skills hub in Aberdeen; and launch a pilot scheme with the National Energy Skills Accelerator to determine the skills required for an energy transition. The new Planning Hub will strengthen capacity and accelerate decision making, with an initial focus on hydrogen applications.

A decision on Berwick Bank will be taken by Ministers in due course. We cannot comment on a live application but we are committed to a robust decision making process for offshore wind farms which considers the need for development alongside potential impacts to the marine environment and marine users.

Forth Green Freeport’s recently submitted full business case details ambitions to create 34,500 direct jobs, comprising 16,000 direct jobs and 18,500 jobs supported indirectly in supply chains and through wages, and up to £7.9 billion in investment.

The full business case is currently being appraised by Scottish and UK governments. Upon approval, it will unlock up to £25m seed capital funding to support enabling works. The commitments made by the Green Freeports in their business cases will be subject to robust monitoring and reporting requirements, enshrining their commitments across a number of key dimensions.

In respect of offshore consenting, we have been planning for an increase in offshore wind applications for some time and aim to determine offshore wind farm applications within 12 months where possible, however we have been clear that more complex applications may take longer. The average timeline to determine consents for offshore wind is currently 11 months (down from 17 months pre 2015).Each application must be considered on its own merit, balancing the needs of all maritime users and the natural environment. Maintaining this balance will continue to enhance Scotland’s place as a world-leading destination for offshore wind investment.

There is no change to the position on NHS Capital Projects as a result of the postponement of the Medium Term Financial Strategy.

In December 2023, given the extremely challenging capital funding position, NHS Boards were instructed to pause any project development spend and instead direct capital budgets towards maintenance of the existing estate and essential equipment and digital replacement. Boards were notified that the Scottish Government does not anticipate starting construction of any new project over the next two years at least. Obviously should the UK Government change course on capital investment we have an opportunity to look at this again alongside the capital review ongoing across the Scottish Government.