In Scotland, we’ve made significant progress in decarbonising our electricity supply with over 80% now generated by low-carbon sources. This has significantly contributed to reaching our Net Zero by 2045 target. However, more than half of our energy demand is met by gas-fuelled heating for our homes, businesses and public buildings, and consequently heat is currently the single largest source of carbon emissions in Scotland. Renewable heat is therefore the next frontier in decarbonisation.
Developing new heating projects using low-carbon sources is critical if we are to achieve the transition to net zero. The Scottish Government is currently developing a new legislative and policy framework which seeks to encourage low-carbon heating sources and decentralised heat networks. It is hoped the new legislative framework will kick-start a pipeline of low-carbon and district heating projects across Scotland. Now is therefore an opportune time for our communities to consider local prospects for low-carbon heat solutions.
Scotland has long been a pioneer in community energy projects and is well-placed to tackle this next challenge using a community-led model. There are many examples of community electricity projects across the nation, including cutting-edge ones, such as the Surf 'n' Turf project in Orkney. Led by Community Energy Scotland, this project generates hydrogen from tidal and wind energy which is used to supply local energy demands, including shore power for inter-island ferries.
In tackling the next frontier in decarbonisation of renewable heat projects, Scotland is also establishing a successful record of community-led heat projects. Iona Renewables is an initiative promoting "carbon literacy" and carbon-saving actions across the island’s community while also installing low-carbon heat supplies and improving the energy efficiency of its buildings.
Meanwhile, the Heat Smart Orkney project, financed by the Scottish Government’s Local Energy Challenge Fund, is utilising community-owned wind turbines to heat local homes, reduce fossil fuel use as well as fuel costs, and is creating employment opportunities for residents on the island. This is a good example of how community projects can help address social goals such as fuel poverty as well as climate goals.
We must now put this expertise to use to develop further low-carbon heat solutions which reduce emissions, enhance our environment and serve our communities. With the Scottish Government’s new legislation coming fully into force next year, local authorities will soon publish designated heat network zones that identify priority areas where developers could roll out further low-carbon heat projects. In considering project opportunities, community groups must be mindful of the incoming legislative framework, including the heat network zones and associated permits and licences, and consider the key role they can play in terms of initiating and developing projects. Addressing the largest source behind carbon emissions is essential if Scotland is to achieve net zero by 2045. Embracing community heat projects is crucial to deliver this ambition.
Ultimately there is a huge task ahead to decarbonise our heat supply and it will require all of us to work together to achieve this.
Laura Sefton is a Senior Associate at law firm CMS
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