Climate Change Programme Consultations

Section 1 - Introduction

Contents

 

Certain groups within society will experience the transition to net zero more acutely than others.  This is particularly the case for island communities such as Shetland, which are highly reliant on hydrocarbons for their existing industries and lifeline services. 

History has shown that areas which have experienced poorly managed, abrupt and unplanned transitions of the past remain disadvantaged in relation to education, employment and income levels compared to the rest of the country.  Due to our high vulnerability to change, the urgency to change and the opportunities which may come from change, it is essential that Shetland takes a considered approach to ensure a Just Transition to Net Zero. 

The Energy Strategy sets out the components of energy transition.  When taken together, these sections help to navigate energy transition in Shetland by describing the whole energy system opportunities and challenges that need to be considered.

Shetland has been an energy hub for over 40 years and with that comes a wide range of infrastructure and capacity within the community all of which will be key enablers for energy transition. 

 

Ambition and Vision

Our ambition is to achieve secure and affordable energy future for Shetland while reducing carbon emissions to net zero.

Our vision is that by 2045:

  • We will have full access to clean, affordable and secure energy produced in Shetland.
  • Energy Developers will have fully engaged with the Energy Development Principles across all four themes through project development, delivery and decommissioning.
  • Shetland continues to have a skilled workforce and strong supply chain, building on the foundations which are currently in place.

 

Purpose

The Shetland Energy Strategy is a Council-led strategy that aligns with and builds on other place-based strategies. It expands on the objectives of the Shetland Climate Change Strategy and the Inclusive Growth Programme that are led by the Shetland Partnership. While Council-led, this strategy is to be adopted externally within Shetland, across partnerships and relevant organisations.  The strategy includes a list of high-level actions aligned to four Long Term Outcomes.  The strategy has been structured to align to: Place, Planet, Prosperity and People with a number of draft “We will” statements to highlight the broad scope of action required to achieve a Just Energy Transition for Shetland.  The two complementary structures can be used as a starting point for organisations to prepare their own aligned action plans depending on their area of interest in energy transition.

The intended audience for the strategy is the local community and any stakeholders we wish to engage in energy projects. 

The Shetland Energy Strategy has three purposes, to:

  1. provide information and awareness on how Energy Transition will impact Shetland,
  2. act as a blueprint for developers, funders, and decision takers to consult
  3. hold accountable the key partners that implement the actions

 

Our Strategic Scope

Given the scale of the challenge and proposition that we face, it is important that we begin by setting out what the terms of reference need to be for the Energy Strategy. The terms of reference are described below:

  • To embed the Just Transition principles for Shetland society including sustainable work and affordable energy
  • To identify the whole energy system led actions that need to be taken, the timing for those actions and the funding for those actions
  • To guide Shetland’s fuel use to net zero carbon emissions in all economic and social activities,
  • To put in place a communications system to enable wide public engagement, representation with energy developers and with government agencies

 

Our Challenge and Proposition

Managing the response to Climate Change is the biggest challenge that the human race has faced. This is a huge proposition at international and national levels and impacts down to local scale.  Such massive change presents us with the opportunity to transition to a fairer more affordable energy system for Shetland.  Our work ties in with the need to reduce our emissions as set out in the Shetland Net Zero Route Maps (NZRM) and the need for places such as Shetland to be prioritised in the planning and delivery of a “Just Transition”, given our high dependency on hydrocarbons for our key economic sectors and essential lifeline services.

Challenges:

  • Clean, secure and affordable energy in the short, medium and long term along with the infrastructure required to move, store and use the energy;
  • The different scenarios which may play out;
  • How to maximise opportunities and overcome challenges; The knowledge, skills and capacity required, and,

Our proposition is:

  • Exploring energy transition for Shetland’s whole energy system
  • Creating pathways to enable a Just Transition to net zero.

 

What is "energy transition"?

Energy transition is the transformation of the global energy sector from fossil fuel based to zero carbon sources.  For this to be successful, energy related CO2 emissions have to be significantly reduced by the middle of the century in order to mitigate climate change and limit global temperature to within 1.5°C of pre-industrial levels. 

The global outlook prepared by the International Renewable Energy Agency (IRENA) provides further information from a global perspective on the six components of energy transition. These are:

  1. Energy efficiency
  2. Generate electricity from renewable sources.
  3. Electrification.
  4. Use of clean hydrogen and other derivatives for hard to decarbonise sectors and industrial processes.
  5. Carbon Capture and Storage (CCS in industry – The UK’s independent climate advisors, the Committee on Climate Change, predict it would be difficult to achieve climate change ambitions without CCS).
  6. BECCS (Bioenergy with Carbon Capture and Storage) and other carbon removal measures.

Energy transition in Shetland will touch on each of these six factors, which are discussed in further detail in subsequent sections.

 

What is "Just Transition"?

Energy transition can follow various routes to net zero but if it is to be successful it needs to be a “just transition”.  The Scottish Government report, Just Transition – A Fairer, Greener Scotland (September 2021) defines a just transition as: 

both the outcome – a fairer, greener future for all – and the process that must be undertaken in partnership with those impacted by the transition to net zero.  Just Transition is how we get to a net zero and climate resilient economy, in a way that delivers fairness and tackles inequality and injustice (p.5)

As highlighted above we know from history that where a transition is abrupt and unplanned change can take decades to recover from.  We also know that energy transition has to happen, fossil fuels are a finite resource and the emissions associated with their combustion are driving climate change. 

In Shetland a “Team Shetland” approach is being taken.  Specific groups are taking forward different aspects of energy transition, with the Shetland Partnership having an overarching role to promote inclusive growth.  The Energy Strategy provides greater detail on how the different components link to ensure that there is a high level of communication and collaboration.

 

Long Term Outcomes

The long term outcomes of the Energy Strategy are as follows:

  1. Reduce Emissions – Bring Shetland land and marine based energy emissions to net zero and contribute to national targets through the export of clean energy [Does not include the carbon emissions from our peatlands which needs to be addressed over a longer timeframe, and is not directly linked to energy transition]
  2. Secure affordable energy – Secure all Shetland energy consumption from affordable islands-based generation
  3. Create & Retain Local Wealth – Generate £100m a year of diversified economic revenue to the Shetland economy
  4. Skills and capacity development – Local supply chain adapted and grown to support new industries in clean energy employing 500 people in Shetland

 

Strategy Development and Structure

About this strategy

The vision and long term outcomes for the Energy Strategy look out to 2045 but, as there are many unknowns in the shorter term, the energy strategy will be iterative, developing as technology advances become more certain and infrastructure investment decisions are made.

Following the acknowledgement of a climate emergency by the Council back in 2020, the Council initiated the climate change programme.  One of the first actions undertaken was to commission the NZRM for Shetland.  This study provides detailed information on the magnitude of the challenge to reach net zero in Shetland.  This is however only part of the story. If Shetland is to remain a viable place to live and work it is essential that we support our existing industries to develop and transition in a diversifying economy.  The third task relates to the cost of energy.  We have faced the enduring challenge that, while we are a major energy hub, we pay the highest amounts for energy and have high levels of fuel poverty.  This challenge has been magnified over the past two years when energy prices have increased significantly. 

The energy strategy has been developed to look in more depth at the different components of energy transition and how we can achieve a just transition to net zero.  Looking at the whole energy system for Shetland considering energy generation, infrastructure, energy use, the cost of energy, maximising the benefits of energy transition to the community along with the necessary skills both relating to our day to day lives and the jobs opportunities. 

Research & Development

This strategy has developed through many conversations with contributing third parties organised by the Future Energy Team with consideration for the existing and emerging energy related strategic frameworks.

Previous and Alligned Strategies:

  • Shetland Strategy for Renewable Energy Development (2004) - Written and published by the Shetland Renewable Energy Forum (now the Shetland Net Zero Energy Forum)
  • Renewable Energy Development in Shetland Strategy and Action Plan (August 2009) - Strategy to use renewable energy to enhance the quality of life in Shetland for future generations.
  • Shetland Net Zero Route Map (October 2022) - Provides a strategic route map for how Shetland as a whole can work towards achieving net zero emissions.
  • Shetland Climate Change Strategy (TBD) - Work on this is being led by a Sub group of the Shetland Partnership.  This has been informed by the Shetland Net Zero Route Map.
  • Energising Shetland - Programme approved by the Council on 27th September 2023
  • Local Heating & Energy Efficiency Strategy (LHEES) - Currently being prepared
  • ZetTrans Shetland Transport Strategy 2018-2028 - Current transport strategy for Shetland, refresh of the 2008 Shetland Transport Strategy.
  • Shetland Transport Strategy 2022-2042 - Full revision under development to take account of significant new environmental, societal and economic challenges, and strategic and technological developments.
  • Shetland Partnership Plan 2018-2028 - ‘Local Outcomes Improvement Plan’ (LOIP) for Shetland, a statutory requirement for the Partnership under the Community Empowerment (Scotland) Act 2015.  Work on the updated version has started.  We need to ensure alignment between the Shetland Energy Strategy and the 5 work packages, in particular climate change and inclusive growth.
  • Shetland Islands Regional Marine Plan - A policy and data framework which aims to provide clear guidance and evidence to support a wide range of marine decisions throughout Shetland. The SIRMP was created by the Shetland Marine Planning Partnership (Shetland UHI and Shetland Islands Council) with the support of an Advisory Group.
  • Community benefit - The Council’s Development Services Department is leading work on community benefit, relating to the Energy Development Principles.

Format

The document is split into sections that describe the main components of energy transition. Taken together, these sections help to navigate energy transition in Shetland by describing the whole energy system opportunities and challenges that need to be considered.  The strategy is iterative because, while there is a general understanding about what needs to be done to mitigate against climate change, the challenge is how to do that and achieve the essential wider benefits.  Section 2 sets out a number of indicators of change which will be reported on annually, to show the achievements for the year and the tasks for the next 1-5 years, along with any updates to the longer term ambitions.

Stakeholder engagement

Work began on the Shetland Energy Strategy in early 2022, based on a wide range of continuing conversations with contributing organisations hosted by the Council’s Future Energy Team.  Figure 3 above highlights some of the groups involved and the linkages. A comprehensive, although non-exhaustive, list of stakeholder working groups, partnerships and strategic frameworks are included in Annex 1 to highlight the linkages of the Shetland energy ecosystem.  

Having an awareness of the different groups and their reporting lines is important to reduce duplication and to ensure communication is efficient.  Energy transition is a massive challenge which needs to be approached from a wide range of different angles, and there isn’t the time or resource to duplicate effort.

We are grateful to the following organisations who have provided case studies and support for the development of this strategy:

  • Bressay Development Ltd
  • Cooke Aquaculture
  • EnQuest
  • Highlands and Islands Enterprise
  • Home Energy Scotland
  • Malakoff Ltd
  • North Fish
  • North Yell Development Council
  • Nova Innovation
  • Scottish Seafarms
  • SHE&P
  • Shetland Aerogenerators
  • Shetland Fishermen's Association
  • SSE Renewables
  • Statkraft
  • The University of Edinburgh
  • The University of Strathclyde
  • UHI Shetland

 

Consultation Process

This draft version of the Shetland Energy Strategy will have an extended consultation process with comments incorporated before a final version is published. This will include:

  • Online questionnaire
  • Webinars and presentations
  • Targeted workshops

Consultation on this draft will begin in January 24 and end on 8th March 2024.

Proposed timeline:

  • 10th October 23 - Deadline for responses on the SEA screening report from consultees
  • 17th October 23 - Deadline for responses on the SEA scoping report from consultees
  • 19th December 23 - Consultation plan circulated to Council Members
  • December 23 - Pre-consultation kick off presentation to the Shetland Green Skills Group
  • 26th January 2024 - Consultation start date
  • 26th January 2024 - Environmental Assessment to SG SEA Gateway for consultation to have available to the public at the same time as the Energy Strategy
  • February 2024 - Inclusive Growth work package of the Shetland Partnership to consider the proposed governance structure
  • 8th March 2024 at 11:00 - Consultation closes
  • March 24 - Consultation responses compiled and amendments made to the strategy document and environmental assessment
  • March 24 - Earliest date complete report to the council – may have to postpone to next meeting depending on consultation responses and changes required
  • April 24 - We will respond to comments from both the public and the consultation authorities in a Post-Adoption Statement after the Strategy is approved by full Council

 

Strategy Delivery

While the strategy development has been Council led, successful delivery depends on a large range of stakeholders and external organisations.  This approach is based on Shetland’s proven record of strong partnership working.

Action Planning

The Shetland Energy Strategy has four long term outcomes.  For each of the four long term outcomes three or four high level actions have been identified.  In addition, draft “We will” statements have been included throughout the document to highlight where action needs to happen.  These have been summarised in Annex 5.  A draft Logic Model has been included in Annex 3 to try to summarise how the different components connect. The Logic Model also forms part of the consultation process to ensure there are no gaps in our work and that we develop a robust governance structure which aligns with existing and developing structures.

Section 13 describes a tool kit for Action Planning, and this is to be developed as part of the consultation process.  The aim of the toolkit is to support individual organisations and partnerships to develop their own plans and projects in line with the long term outcomes highlighted in the strategy. The toolkit will create a ‘standardised’ process to enable easy sharing and monitoring of the action plans across a wide range of stakeholders who will ultimately deliver the long-term outcomes of the strategy.

Where this fits

There is a wide energy ecosystem of working groups and organisations that hold interests in addressing the energy future of Shetland. This ecosystem is essential for driving the delivery of the energy strategy, but it is necessary to define how and where these groups best fit together.

One obvious place to deliver this strategy across Shetland is under the Shetland Partnership. The Partnership has 5 different programmes of work:

  • Local, Place based collaborative working
  • Mitigation of & Adaptation to climate change
  • Shifting the balance of care
  • Reducing inequalities through promoting kindness
  • Reducing inequalities through inclusive growth

We propose that the Shetland Energy Strategy is one of the first pieces of work to develop under the Inclusive Growth work package within the Shetland Partnership. This will become the body to monitor and assess the progress and gaps within the action plans across organisations and workgroups.

We will statements

  • As part of the consultation process we will establish a strong governance structure with senior management, with responsibility allocated to the implementation, monitoring and reporting of the long-term outcomes for the Shetland Energy Strategy.
  • We will lead and inspire collaborative action on energy transition across Shetland- providing social, economic and environmental benefits to local organisations, businesses and the community.
  • We will be empowered by the community.
  • We require a Shetland approach to the Energy Transition challenges and opportunities which recognise our legitimate interests and concerns.