£700m boost after 17 wind farms chosen
A new generation of mega-wind farms will be built in Scottish waters, providing a huge spin-off for the supply chain and representing a big step towards meeting climate objectives.
Crown Estate Scotland has selected 17 projects from a total of 74 applications. The Scottish government will receive a £700 million windfall to be re-invested in public services.
The ScotWind Leasing process is the first offshore wind leasing round in over a decade and the first since the management of offshore wind rights were devolved to Scotland.
Each of the chosen projects has been offered option agreements which reserve the rights to specific areas of seabed.
Initial indications suggest a multi-billion pound supply chain investment in Scotland and a key milestone in achieving net zero targets.
Simon Hodge, chief executive of Crown Estate Scotland, said: “Today’s results are a fantastic vote of confidence in Scotland’s ability to transform our energy sector.
“Just a couple of months after hosting COP26, we’ve now taken a major step towards powering our future economy with renewable electricity.
“In addition to the environmental benefits, this also represents a major investment in the Scottish economy, with around £700m being delivered straight into the public finances and billions of pounds worth of supply chain commitments.
“The variety and scale of the projects that will progress onto the next stages shows both the remarkable progress of the offshore wind sector, and a clear sign that Scotland is set to be a major hub for the further development of this technology in the years to come.”
However, GMB Scotland Secretary Louise Gilmour issued a warning to the authorities about delivering successful outcomes.
“After the abject failure of the last decade on offshore wind manufacturing, progress will be judged on the number of jobs and scale of investment this leasing round brings to Scotland,” she said.
“But let’s be clear there are no guarantees – the list of successful applicants includes firms that have offshored tens of thousands of green manufacturing jobs to the rest of the world in previous projects.
“This is a massive test of the renewables industry’s environmental and social justice credentials, and the last chance saloon for political leaders who have promised a green jobs revolution for years.”
|Map reference||Lead applicant||Option Fees||Technology||Total capacity (MW)|
|1||BP Alternative Energy Investments||£85,900,000||Fixed||2,907|
|4||Shell New Energies||£86,000,000||Floating||2,000|
|11||Scottish Power Renewables||£68,400,000||Floating||3,000|
|13||Offshore Wind Power||£65,700,000||Fixed||2,000|
|17||Scottish Power Renewables||£75,400,000||Fixed||2,000|
Should any application not progress to signing a full agreement, the next highest scoring application will instead be offered an option.
Once these agreements are officially signed, the details of the supply chain commitments made by the applicants as part of their Supply Chain Development Statements will be published.
This is the first stage of the long process these projects will have to go through before turbines go into the water, as the projects evolve through consenting, financing, and planning stages.
Responsibility for these stages does not sit with Crown Estate Scotland, and projects will only progress to a full seabed lease once all these various planning stages have been completed.