Based on analysis carried out by SSEN Transmission, 93% of its engaged stakeholders support reform of the current Transmission charging regime to support the UK’s legally binding net zero emissions target; which currently results in Scottish generators paying a higher cost for use of the transmission network compared to other areas in GB.
For example, while a wind farm in the north of Scotland pays £5.50 per unit of energy, an equivalent wind farm in Wales will get paid £2.80 per unit.
With Scotland boasting the greatest wind resource to meet the UK’s net zero targets, this creates a huge barrier for further low carbon investment, despite great support for further deployment through UK and Scottish Government policy.
Following the publication of a Transmission Network Use of System (TNUoS) charges discussion paper earlier this year, which explored the impact of this issue for Scottish generators in greater detail, SSEN Transmission has published a follow up summary report this week which analyses and outlines the key feedback received from stakeholders on the paper’s findings.
Views were gathered using a range of methods including written responses, calls with stakeholders, feedback forms and through an interactive stakeholder webinar session, which was joined by over 100 participants including renewables developers, consultants, industry bodies, local authorities and economic development agencies. Key findings from the summary report include:
- 93% of all stakeholders agreed that some form of TNUoS reform is required.
- 70% agreed with the findings outlined in our TNUoS paper.
- 84% told us that TNUoS acts as a barrier to the delivery of their renewable projects in Scotland.
Andrew Urquhart, Head of Whole System at SSEN Transmission explains: "Our generation customers and wider stakeholders have been consistently telling us that charges for transmission access in the north of Scotland, as well as uncertainty about future charges, are acting as a barrier to the commercial viability of renewable energy projects. This, in turn, is making it difficult for us to determine system investment needs for our Transmission networks.
"It is clear from our analysis and engagement to date that there is overwhelming support for TNUoS reform and that urgent action is required to address current barriers in the context of the climate emergency. Given the level of concern raised by our stakeholders, we hope the feedback outlined in our report will help to encourage action on the need for an urgent review of the current regime to support the UK’s ambitious net zero targets and green recovery goals.”
The full stakeholder feedback summary report can be accessed here.
Our TNUoS discussion paper, published in February 2021 can be accessed here.
Following stakeholder feedback, SSEN Transmission plan to publish an addendum to its TNUoS paper in the summer, which will explore the impact of TNUoS and offshore wind in more detail.