delete SPECIFIED AGGREGATE AMOUNTS OF GENERATING CAPACITY
The Electricity (Non-Fossil Fuel Sources) (Scotland) Order 1997 mandates that Scottish public electricity suppliers secure minimum generating capacity from non-fossil fuel sources (up to 15MW stations) at premium fixed prices per kWh through 2012. It establishes commissioning process definitions, capacity aggregation requirements, conditions precedent, and termination events affecting supplier obligations.
This regulation mandates forced procurement of non-fossil fuel electricity at government-fixed prices, distorting market signals and insulating generators from efficiency incentives. Premium price arrangements compel utilities to purchase from designated sources regardless of market conditions, raising costs for consumers. The fixed price mechanism (disregarding inflation adjustments) freezes inefficient producers in place while blocking cheaper alternatives. Such outcomes are better achieved through carbon pricing or emissions trading, which allow markets to find least-cost abatement. Technological progress since 1997 has fundamentally changed the economics of non-fossil generation, rendering this Soviet-style procurement quota obsolete.