SCOTLAND attracted more energy-related Foreign Direct Investment (FDI) projects in 2025 than every other country in Europe except France and Germany, according to a new report from service giant EY.
The company – one of the “Big Four” professional services firms – said that Scotland had seen 15 FDI energy projects in 2025, 55% of the UK’s total of 27.
France led the pack with 50 projects, while Germany came in third place with 16. Spain was fourth with 12.
However, the UK’s total was down 51% from the 55 projects secured in 2024 – and was the lowest annual total since 2013’s 14 projects.
According to the EY analysis, oil and gas projects fell 81% year-on-year (from 16 in 2024 to just three in 2025), while utility supply projects dropped 39% (from 39 to 24). The three oil and gas projects, which were all in Aberdeenshire, represent 15.8% of market share across Europe.
Europe as a whole attracted 177 energy FDI projects in 2025, a 36% year-on-year decrease following the 275 projects secured in 2024. The UK received 15% of all energy projects in Europe last year, compared to 20% in 2024.
The leading sources of UK energy sector projects during 2025 were the US and Norway, which contributed four projects each.
Scottish Energy Minister Stephen Gethins welcomed the report, saying it demonstrates “that Scotland’s energy sector is one of the true leaders of the energy transition with the ability to attract serious and sustained inward investment in the face of global economic uncertainties”.
“However, this report also illustrates the true cost of UK energy policy for cities like Aberdeen,” he went on. “Crucially, none of the challenges identified are insurmountable but many of the key policy levers remained reserved to Westminster.”
Gethins called for the UK Government to scrap the windfall tax on North Sea oil and gas profits, reform the transmission charges “that put Scottish renewable energy generators at a commercial disadvantage”, and accelerate network upgrades to reduce the constraint payments given to renewable operators to stop production when the grid does not have sufficient capacity.
Craig Dalzell, the head of policy at the Common Weal think tank, urged caution, saying that “Scotland needs to start calling out ‘Foreign Direct Investment’ for what it is”.
“Investment, by definition, demands a return to the investor. This report is the result of policies that mean that profits are extracted from Scotland to a degree far higher than almost any other developed nation that isn't an outright tax haven,” Dalzell said.
“In 2021, the most recent year for which we have data, Scotland lost more than £10 billion to this profit extraction. Since devolution, we've lost more than a quarter of a trillion pounds to outwards profit extraction.
“What would our nation look like if, instead of encouraging profit extraction, the Scottish Government had promoted local investments into Scottish companies and the returns of those investments had appeared in Scottish worker salaries instead of the dividends of overseas shareholders?”
Annie Graham, EY UK industrials and energy lead, said: "Energy is a critical sector for capital investment in its own right, but is also a key enabler for successful investment in energy-intensive industries, such as AI data centres and steel.
“The UK has an opportunity to support future investment in the sector and build on its perceived advantages around renewable energy by accelerating grid connection times and wider planning reform to persuade developers to contribute capital to energy infrastructure.
“With high energy costs for business continuing to be a key concern for international investors, initiatives to encourage greater domestic energy production are also welcome and should help to improve price competitiveness in the UK energy market, as will the Government’s recent commitments to delinking electricity and gas prices.”
