Thank you Brian. I am very pleased to be here today in Aberdeen, and honoured by the invitation to participate in this year's All-Energy conference. This annual event has grown in stature these last few years, and is now an important date in the energy industry's calendar.

And where better to host such an event? Over the last 30 years, Aberdeen has developed its reputation as the "oil capital of Europe". North sea oil has brought huge investment to this country since its discovery, and helped transform the industrial complexion of the nation. It has provided the North East and Scotland with thousands of jobs and massive economic benefits.

And oil and gas has a vital role to play still, indeed for many years to come. But Governments across the world are quite rightly beginning to look more and more beyond the visible horizon. We know that fossil fuel reserves are finite. We know about the effect that fossil fuels can have on climate change. And we know that renewables are the fuel of the future. That is why I took great pleasure in helping to shape the Scottish Executive's commitment to renewable energy. By 2010 we want Scotland to be generating 18% of its electricity from renewable sources; by 2020, we want this to have risen to 40%. This will not only help tackle climate change, but will also strengthen our economy and help ensure secure energy supplies for all Scots.

That commitment is very much alive right here in Aberdeen, and is reflected in the city's ever-growing reputation as the "energy capital of Europe". The North East has an excellent track record in energy industry development and diversification. The valuable skills, expertise and infrastructure which the oil and gas sector has brought about gives us a tremendous opportunity to accelerate renewables developments.

This shift in emphasis is already taking place. The oil company Talisman Energy has plans to build a deep water wind demonstration project at its Beatrice Field. The Scottish Executive has committed £3 million towards this project, which is the first of its kind in Scotland. I hope very much that it is successful, and that a full-scale development follows. It is now a truism that Scotland's potential renewable resource is among the world's best. This was borne out by a study which we commissioned in 2001, which found that Scotland could potentially generate our current peak electricity demand several times over from renewable sources. This study demonstrated beyond doubt that a renewable energy industry and economy are not only plausible, but within reach.

We have some of the best wind, wave and tidal resources across Europe. Lengthy daylight hours during the summer, and a healthy wood fuel resource to feed a growing biomass industry. The Executive is determined that we make the most of what we've got, before it is too late.

It is always encouraging to see the growing number of companies and organisations already actively involved in renewable energy, across a wide range of technologies. Here in Aberdeen the city's Renewable Energy Group is doing some sterling work to promote Aberdeen's status as Europe's energy capital. I was particularly pleased to hear of their drive to develop an energy futures centre, which will help showcase renewable energy.

There are several examples of companies and communities that are benefiting from renewables. Vestas in Kintyre, manufacturing wind turbines for the growing domestic sector. The Balmoral Group in Aberdeen, now building and selling nacelle covers to Vestas. Ross Deeptech, providing engineering support to the European Marine Energy Centre in Orkney. And Renewable Devices - supported by Executive funding for their innovative "swift" wind turbine - have successfully established themselves in the renewables market. The work of these and other companies are important steps towards achieving the thriving renewables sector we all desire.

Transforming Scotland into a renewables powerhouse demands commitment from across the board, from the public and the private sector. Your role in the development of renewable energy in Scotland is imperative. Together, we can ensure that the industry does develop, that this country can lead the world, and that we can become a truly sustainable Scotland.

All-Energy has become a significant event in the renewables calendar, increasing in value each year. It is a vital opportunity to bring the industry together to discuss how we move forward and capitalise on our achievements so far.

On top of this, the World Renewable Energy Congress is taking place this week. The choice of Aberdeen and Scotland for this prestigious event is testimony to our global recognition as a leader in renewables.

As I've said, we must continue to build on that reputation. Today's conference lets us do that. The programme for the two days here is in perfect harmony with what the Executive is trying to achieve. It covers the important issues that we must look to resolve together if we are to achieve the benefits for Scotland that we all want.

I can assure you that the Executive remains utterly focused on sustaining the momentum that we've built up. Last year, at this event, my Ministerial colleague Lewis Macdonald spoke of the potential contribution that the Forum for Renewable Energy Development in Scotland - FREDS - could make to renewables development.

FREDS continues to make excellent and effective progress. Since last year, a great deal more work has been done to map out the way ahead for our renewables industry. The Forum has, in that time, published reports which identify the actions that need to be taken if we are to achieve our aims for the marine and biomass sectors.

The FREDS reports underline the potential value from these sectors - they can provide clean energy and possibly thousands of new jobs. These reports are credible and authoritative - the Executive sets a great deal of store by them, and we are responding positively to the recommendations that they contain.

For example, we recently agreed to increase our funding to the European Marine Energy Centre in Orkney, to over 3 million pounds. This will allow the centre to expand their activities and construct new state-of-the-art tidal testing facilities. Vital work is also underway to develop the operating and safety standards needed for accrediting devices.

We are commissioning a Strategic Environmental Assessment of Scotland's coastline, which will assist developers looking for the best areas to deploy their devices. The £50 million marine energy deployment fund announced by the DTI will be open for applications later this year, and should provide further vital support for the development of the marine sector in Scotland.

The Executive is on record repeatedly stating its belief that a diverse mix of renewables technologies will be essential if we are to successfully deliver our targets and reap the many benefits. This conference reflects the drive towards diversity, covering issues on a range of technologies - offshore wind, biomass, hydrogen, micro-renewables, grid and distribution issues and the all-important finance and funding.

Biomass, like wave and tidal, has a vital role to play, particularly given its predictable and steady supply. The recent FREDS' report on biomass was clear about the scale of Scotland's resource - enough to provide 450 megawatts of capacity and a possible 2,000 jobs. We have every intention of realising this potential, and will be guided by FREDS' recommendations.

We know that biomass, like marine energy, needs additional support if it is to flourish. The Deputy First Minister confirmed earlier this week that the Executive will deliver this support, and that an announcement on the detail will follow shortly. This support will play a vital part in helping to deliver the potential outlined in the FREDS report.

And it doesn't end there for FREDS. This summer we can expect their report into the future skills required to make the renewables sector flourish, as well as their recommendations on the way ahead for hydrogen and fuel cell development in Scotland.

Hydrogen and fuel cells are still embryonic technologies. However, they have the potential to further develop our renewable energy infrastructure. Scotland has the opportunity to be among the first countries to utilise and exploit hydrogen. I am confident the FREDS group will produce a report which will spell out where we can contribute to and benefit from these exciting and fast developing technologies.

As I said earlier diversity is key and it is vital that no rock is left unturned. Only then can we be sure that we are doing everything we can to bring the environmental and economic benefits to the people of Scotland.

Whilst FREDS is rightly focusing on diversity and emerging technologies, wind energy is going to play a huge part in delivering our renewables targets. The Executive welcomes the investment, commitment and success of the wind sector in Scotland to date. There is no doubt in my mind that a strong wind industry will be essential to creating the investment climate and physical infrastructure which the other technologies will need to build upon.

I welcome last week's publication of the Sustainable Development Commission's report into wind power. This independent and rigorous study explores key issues around wind energy, and deconstructs many of the myths and misconceptions surrounding this technology. It should be required reading for anyone with an interest.

The issues need to be clearly and soberly understood. The Executive fully supports a range of renewables technologies, wind very much included. This does not mean that developments will be allowed to take place indiscriminately across Scotland.

We firmly believe that a robust planning and consent mechanism, alongside the current careful consultation between developers, local communities and other interested parties is the key to progress. Wind energy, like other renewables technologies, can coexist peacefully with Scotland's landscapes and coasts, as well as protect them from the scourge of climate change.

We will continue to focus on the need to provide robust and comprehensive information about renewables, and to eliminate recycled myths and groundless fears about the various technologies.

The Renewables Obligation remains our main mechanism for supporting developments. Most of you will be well aware that the Obligation is currently undergoing a major review, designed to make sure it remains relevant and still meets the needs of the industry.

We launched a preliminary consultation on this review some weeks ago, which will run until the 23rd of June. The consultation can be viewed on our website. I urge you to take part in this process, and to get your views across to us. We believe that an improved and more responsive Obligation will remain vital to maintaining investor confidence, and to providing the foundation upon which a wide range of technologies will develop.

We are also making good progress in terms of the fees connected with renewables applications, which Lewis Macdonald first raised at this Conference last year. The revised fee scales will help ensure they more accurately reflect the cost of processing applications, and ought to be a tremendous boost to planning authorities. We expect the revised fees to be implemented later this summer.

These are all important steps. Steps which we need to take if we are to bring about a sustainable energy future for Scotland. But it's not just about large scale developments. Small scale has a role to play too.

On Monday the Deputy First Minister officially opened the largest solar panel array in the country, at Bridge of Don Academy here in Aberdeen. At 180 metres squared, the solar panels will provide 160 megawatt hours of electricity and save 30 tonnes of CO2 emissions per annum.

The Executive continues to help community organisations and householders install small-scale renewables through our Scottish Community and Householder Renewables Initiative. This scheme has committed 5 million pounds to over 600 projects - a number of which are right here in the north-east.

Renewables is about the future. And the future development of our renewables policies will continue to rely on robust data and expert input. A study by Edinburgh University into matching generation with demand will provide exceptionally valuable information which will help shape our future progress.

So too will our forthcoming energy study, which will map supply and demand in Scotland. Both studies are due to be published shortly.

Renewables policy also links very strongly with our wider climate change and sustainable development commitments. Promotion of renewable energy, along with energy efficiency, is a key measure in our Scottish Climate Change Programme. Carbon savings achieved from increased renewables generation in Scotland contribute to wider UK, European and international climate change objectives.

In comparison with global greenhouse gas emissions, Scotland's emissions are small but no less important in their contribution to climate change. That is why we must continue efforts to reduce our emissions which, together with efforts being made by other countries, can add up to make a big difference for our environment.

We are currently reviewing our Climate Change Programme to ensure that we continue to make our contribution to wider climate change objectives and our renewables policy is expected to remain a key element of our climate change response.

We will also be publishing a Scottish sustainable development strategy this autumn. Sustainable development is of course the context in which your achievements and ambitions should be viewed. I have already mentioned a number of successful renewables example which are making fine contributions to our future sustainability.

The Strategy will consult a range of stakeholders to identify the critical issues and the contributions they can make. Energy production and consumption is one of those issues. We need to find ways of working which is fairer to future generations, and renewables is one of those ways.

Renewable energy has played a key role in our past, thanks to Tom Johnstone's vision and our renowned fleet of hydro stations. It informs our thinking and our actions in the present day. And it will provide the essential building blocks for our future, a sustainable future.

We have achieved much so far. But, as I said earlier, there is never room for complacency. We must continue to make progress and reap the potential benefits available to us all.

I am grateful to the Conference organisers to have had the chance to discuss these issues here today. These remain exciting times for the renewables industry; it is good to celebrate success at the same time as looking to the future.

If we can maintain our current momentum, then there should be even more to celebrate at next year's event.

Thank you