The Electricity (Non-Fossil Fuel Sources) (Scotland) Order 1997

Made: 12th March 1997

Laid before Parliament: 13th March 1997

Coming into force: 14th March 1997

The Secretary of State, a previous order[^f00001] under section 32 of the Electricity Act 1989[^f00002] having had effect in relation to each public electricity supplier in Scotland, in exercise of the powers conferred on him by section 32(1) and (2) of that Act and of all other powers enabling him in that behalf and after consultation in accordance with section 32(1), hereby makes the following Order:

Citation, commencement and application

1

• (1) This Order may be cited as the Electricity (Non-Fossil Fuel Sources) (Scotland) Order 1997 and shall come into force on 14th March 1997.

• (2) This Order does not apply to England and Wales.

Interpretation

2

• (1) In this Order–

• “the Act” means the Electricity Act 1989;

• “commissioning process” means the process consisting of such procedures and tests as from time to time constitute usual industry standards and practices for commissioning a non-fossil fuel generating station of any description specified in Schedule 1 in order– to demonstrate that such a non-fossil fuel generating station is– capable of commercial operation; or in the case of a non-fossil fuel generating station which is the subject of relevant arrangements, capable of commercial operation for the purpose of such arrangements; to establish the external physical conditions outside the control of the operator which are necessary for the operation of such station or which control the amount of electricity produced by the station; and to establish the operating parameters within which such station can be operated in accordance with practices, methods and procedures which are or should be adopted by a person exercising that degree of judgment, skill, diligence and foresight which would ordinarily and reasonably be expected from a skilled and experienced operator engaged in the business of operating such a station lawfully;

• “generating set” means a prime mover and alternator;

• “industrial waste” includes food-processing waste;

• “operator” means an operator of any relevant non-fossil fuel generating station;

• “premium price arrangement” means an arrangement made before the day on which this Order is made under which a public electricity supplier or a person on behalf of a public electricity supplier agrees to purchase electricity generated by a non-fossil fuel generating station at any time in the period commencing on 21st July 1993 and ending on 31st March 2012 (whether or not the agreement covers other periods) for a fixed price per kilowatt-hour (kWh) and for this purpose any provision for adjustment of the price by reference to any measure of inflation shall be disregarded;

• “relevant arrangements” means arrangements evidence of the making of which is produced to the Director in accordance with article 3(1);

• “relevant non-fossil fuel generating station” means a generating station with an installed capacity not exceeding 15 megawatts, of a description specified in Schedule 1 and falling within the description of non-fossil fuel generating station specified in article 3(2); and

• “waste to energy generating station” has the meaning given to it in paragraph 3(2) of Schedule 1.

• (2) In Schedule 1–

• (a) where a definition refers to generating stations which are fuelled by a particular non-fossil fuel or fuels, this includes generating stations which use fossil fuel for one or more of the following purposes–

• (i) the ignition of gases of low or variable calorific value;

• (ii) the heating of the combustion system to its normal operating temperature or the maintenance of that temperature;

• (iii) emission control;

provided that in any period shown in tables A to D in Schedule 1, the energy content of the fossil fuel, that is to say the gross calorific value of that fuel (as expressed by weight or by volume) multiplied by the weight or volume of that fuel, used in the generating station does not exceed 10% of the energy content of all the fuel used; and

• (b) the specified amounts of generating capacity are expressed in megawatts.

• (3) In this Order, unless the content otherwise requires any reference–

• (a) to a numbered article is to the article bearing that number in this Order;

• (b) in an article to a numbered paragraph is to the paragraph bearing that number in that article; and

• (c) to a numbered Schedule is to the Schedule to this Order bearing that number.

Requirement to make arrangements etc.

3

• (1) Each public electricity supplier in Scotland shall before 1st May 1997 make, in so far as he has not already done so, and produce to the Director evidence showing that he has made such additional arrangements as will secure that for each period shown in tables A to D in Schedule 1 the aggregate amount of generating capacity available to him from the non-fossil fuel generating stations of the description specified in relation to each table and falling within the description of non-fossil fuel generating station specified in paragraph (2), will not be less than the amount specified in that table in relation to him for that period.

• (2) The description of non-fossil fuel generating station specified in this paragraph is either–

• (a) a non-fossil fuel generating station, other than a waste to energy generating station which is fuelled as specified in sub-paragraph (a) of paragraph 3(2) of Schedule 1, and in respect of which–

• (i) the commissioning process was not satisfactorily completed before 2nd November 1995;

• (ii) there is not and has not been a premium price arrangement, other than a relevant arrangement, under which any payment has been or may be made in respect of electricity generated before 1st April 2012 by such station; and

• (iii) the commissioning and operation would not reduce the declared net capacity of any other non-fossil fuel generating station existing at its planned commissioning date; or

• (b) a waste to energy generating station which–

• (i) is fuelled as specified in sub-paragraph (a) of paragraph 3(2) of Schedule 1; and

• (ii) has new foundations;

but which may use an existing gas collection system, provided that, during the period of the relevant arrangements entered into in relation to that generating station, it–

• (a) will not adversely affect the supply of gas to another generating set which is connected to that system; and

• (b) would not have adversely affected the supply of gas to another generating set which was connected to that system at 2nd November 1995 but is no longer so connected.

4

• (1) Where–

• (a) any relevant arrangements provide that the availability to a public electricity supplier of some of all of the generating capacity of a non-fossil fuel generating station is conditional upon the satisfaction of any requirement described in Schedule 2 (conditions precedent) whether the requirement is described in the terms of that Schedule or in terms to the like effect; and

• (b) on the first day of any specified period, some or all of that capacity is not available to the supplier, by reason of any such requirement not being satisfied as was then due, or had previously been due on or prior to such date, under those arrangements to have been satisfied,

then in relation to any day during that or any subsequent specified period ascertained in accordance with paragraph (3), this Order shall have effect as if the relevant aggregate amount specified in relation to that subsequent period were the amount specified in relation to that supplier for the period which includes that day in the table in question in Schedule 1 less (subject to the following proviso) an amount equal to the sum of any capacity whose availability is at that time conditional upon the satisfaction of such requirement or requirements and any capacity which has ceased to be available at that time by reason of the occurrence of any such event or events as are referred to in paragraph (2);

SCHEDULE 1 — SPECIFIED AGGREGATE AMOUNTS OF GENERATING CAPACITY

Biomass generating stations

1

• (1) Table A below relates to biomass generating stations–

• (2) “Biomass generating stations” means generating stations which–

• (a) are fuelled by one or more of the following–

• (i) crops grown for the purpose of providing a source of energy;

• (ii) forestry waste; and

• (iii) fuel derived from either or both of these materials,

but excluding any such station as is fuelled by one or more of the following–

• (aa) gas derived from landfill sites of any description;

• (bb) municipal waste;

• (cc) industrial waste;

• (dd) agricultural waste;

• (ee) sewage matter or gas or waste derived therefrom; and

• (ff) fuel derived from one or more of the materials mentioned in heads (aa) to (ee) above; and

• (b) are driven–

• (i) wholly by an internal-combustion engine or a gas turbine, using gaseous or liquid fuel produced by gasification-by-partial-combustion or by pyrolysis of the fuel allowed by sub-paragraph (a) above; or

• (ii) partly by an internal-combustion engine or a gas turbine using such gaseous or liquid fuel and partly by any engine or any turbine, using steam produced from–

• (aa) heat from the first engine or turbine; or

• (bb) heat produced during the production of the gaseous or liquid fuel.

Hydro generating stations

2

• (1) Table B below relates to hydro generating stations–

• (2) “Hydro generating stations” means generating stations which are driven by any form of water power other than–

• (a) tidal or wave power; or

• (b) power from water which has been elevated or whose pressure has been increased, except where this has been done, directly or indirectly, by power derived from a relevant non-fossil fuel generating station other than a generating station which is itself the subject either of a premium price arrangement or of relevant arrangements.

Waste to energy generating stations

3

• (1) Table C below relates to waste to energy generating stations–

• (2) “Waste to energy generating stations” means generating stations which are fuelled by either–

• (a) gas derived from landfill sites on which, at any time before 22nd July 1993, activities were carried on in pursuance of a licence issued under section 5 of the Control of Pollution Act 1974[^f00003] or in accordance with conditions specified in a resolution passed by the relevant disposal authority under section 11(3)(e) of that Act but excluding any such station as is partially fuelled by one or more of the following:–

• (i) gas derived from landfill sites of any other description;

• (ii) municipal waste;

• (iii) industrial waste;

• (iv) fuel derived from municipal waste or industrial waste;

• (v) human sewage; and

• (vi) gas or waste derived from human sewage; or

• (b) one or more of the following:–

• (i) municipal waste;

• (ii) industrial waste; and

• (iii) fuel derived from municipal waste or industrial waste,

but excluding any such station as is partially fuelled by one or more of the following:–

• (aa) human sewage;

• (bb) gas or waste in either case derived from human sewage; and

• (cc) gas derived from any landfill site.

Wind generating stations

4

• (1) Table D below relates to wind generating stations

• (2) In this paragraph “wind generating stations” means generating stations which are driven by wind.

SCHEDULE 2 — CONDITIONS PRECEDENT

1

• (1) The requirements referred to in article 4(1)(a) are–

• (a) that planning permission and all necessary consents (including any necessary wayleave consents), servitudes and rights to enable any relevant non-fossil fuel generating station to be constructed and operated in accordance with and as contemplated by the terms of the relevant arrangements have been granted;

• (b) that planning permission and all necessary consents (including any necessary wayleave consents), servitudes and rights to enable any public electricity supplier to whose electricity distribution system any relevant non-fossil fuel generating station is to be connected to comply with his obligations as contemplated by the terms of the relevant arrangements have been granted;

• (c) that the operator has entered into, and there has come into force, a connection agreement;

• (d) that the operator holds a licence or has the benefit of an exemption under Part I of the Act authorising him to generate electricity and to convey electricity from the place at which it is generated to the point of delivery for the purposes of the relevant arrangements; and

• (e) that the commissioning process has been satisfactorily completed.

2

In this Schedule, “connection agreement” means an agreement providing for the connection of any relevant non-fossil fuel generating station to a system of electric lines and electrical plant through which generating capacity will be made available to a public electricity supplier.

SCHEDULE 3 — TERMINATION EVENTS

• The events referred to in article 4(2)(a) are–

Signed

George Kynoch — Parliamentary Under Secretary of State, Scottish Office — 12th March 1997

Explanatory note

(This note is not part of the Order)

This Order imposes on public electricity suppliers in Scotland obligations to make arrangements to secure the availability during specified periods of specified aggregate amounts of generating capacity from non-fossil fuel generating stations of particular descriptions. The arrangements must be made, and evidence of their making must be produced to the Director General of Electricity Supply, before 1st May 1997.

Article 3 , read with the tables in Schedule 1, imposes on the suppliers obligations to secure the availability during specified periods of specified amounts of capacity from non-fossil fuel generating stations (biomass, hydro, waste to energy and wind) specified in Schedule 1, not exceeding 15 megawatts of installed capacity, and falling within the description of such stations specified in article 3(2). The amounts are specified in megawatts (one megawatt equals one million watts).

Article 4 provides a mechanism whereby, if certain conditions are not satisfied (see Schedule 2) or if certain events occur (see Schedule 3) the Order is to have effect as if the relevant period specified in the appropriate table in Schedule 1 were replaced by a different period and, as a consequence of that, as if the relevant amount of capacity specified in that table were a reduced amount, the amount of the reduction being the amount of capacity which has ceased to be available by reason of (as the case may be) the condition not having been satisfied or the event having occurred.

A compliance cost assessment has been prepared, a copy of which has been placed in the library in each House of Parliament. Copies of the assessment may be obtained free of charge by postal application to The Scottish Office Education and Industry Department, Victoria Quay, Edinburgh EH6 6QQ.

Footnotes

[^f00001]: S.I. 1994/3275.

[^f00002]: 1989 c. 29.

[^f00003]: 1974 (c. 40); section 5 was amended by the Local Government, Planning and Land Act 1980 (c. 65), Schedule 34, Part II and by the Planning (Consequential Provisions) Act 1990 (c. 11), Schedule 2, paragraph 31(1).