Get all your news in one place.
100's of premium titles.
One app.
Start reading
The National (Scotland)
The National (Scotland)
National
Jamie Calder

Labour slammed as offshore wind snub shows 'mishandling' of Scottish energy jackpot

The National Energy Systems Operator is set to present a grid investment roadmap to the Energy Secretary (Image: PA)

INVESTMENT into Scotland's renewable sector could be at risk as plans set to be considered by Westminster could bypass grid upgrades near key offshore wind projects, it is understood.

The National Energy Systems Operator (Neso) is set to present a grid investment roadmap to the Energy Secretary in the coming weeks.

If approved it will determine where investment into the UK's energy infrastructure will be made through to 2050.

The Sunday Times has revealed concerns from energy industry experts that of the six "pathways" included in the strategic spatial energy plan (SSEP), only two will fully support Scotland's offshore wind pipelines and improve their grid connections.

This could shake investor confidence in Scotland's green energy sector, business leaders have warned.

This is despite new ScotWind offshore sites being projected to generate up to £96 billion worth of additional investment into the sector, according to Crown Estate Scotland, a public body that manages much of Scotland's seabed. If this is to materialise it relies upon the existing pipeline of work being fully built out.

In 2022 ScotWind auctions raised more than £700m for the Scottish Government in return for the lease of 20 seabed sites for offshore wind developments.

Instead, the Neso plans prioritise other areas of the UK where investment can be used to provide capacity for electricity generation and storage.

SNP MSP Calum Kerr accused the UK Government of standing "idly by" while failing to support workers in the oil and gas industry into new green energy jobs, calling for independence to allow Scotland full control over its policy and investment direction.

He said: “Successive Westminster governments have syphoned off £400 billion from Scotland’s energy industry but have now stood idly by as thousands of jobs are lost in our offshore industry.

“Scotland has now won the energy lottery for a second time with the potential to be a renewables superpower. But once again this future is being put at risk by a Westminster government which does not care a jot about Scotland.

“Investment of nearly £100 billion now stands at risk due to a Labour government which has mishandled Scotland’s energy resources with devastating consequences letting bills soar and highly-skilled jobs end up on the scrapheap.

“It is only with the fresh start with independence that we can put Scotland’s energy in Scotland’s hands and use our vast energy resources to build a wealthier country anew.”

Colin Marr, chief executive of Inverness Chamber of Commerce, warned that Westminster needs to invest in Scotland if it is "serious" about securing and expanding the UK's green energy system.

He said: “ScotWind is one of the biggest industrial opportunities Scotland has had in decades, with the potential to support major investment, contracts and jobs across the north of Scotland.

“But leases alone do not build projects. Offshore wind needs grid connections, port capacity, vessels, manufacturing capability and a market framework that gives companies the confidence to invest.

“Businesses across the Highlands and Islands are ready to play their part, but they need confidence that Scotland’s offshore wind pipeline has a clear route to delivery.

“If the UK is serious about clean power, energy security and building domestic supply chains, the full ScotWind pipeline needs to be backed by the grid, market framework and investment signals needed to turn ambition into real work.”

First Minister John Swinney speaking at the Global Offshore Wind Investment Forum
First Minister John Swinney speaking at the Global Offshore Wind Investment Forum (Image: PA)

Ocean Winds, Scotland's largest offshore windfarm operator, raised concerns over grid connectivity issues and transmission charges when it set out plans this year to terminate its ScotWind lease option for the 500MW Arven South floating offshore wind project near Shetland

Maggie McGinlay, chief executive of the Aberdeen-based Energy Transition Zone Ltd, said the Neso blueprint risks the progress that has been built to transition Scotland away from fossil fuels.

She said: “The northeast has spent more than 50 years building one of the strongest offshore energy workforces and supply chains in the world. ScotWind is one of the clearest opportunities to turn that capability into the next generation of energy jobs.

“But that transition will not happen automatically. Projects need grid connections, port capacity, manufacturing capability and a route to market that gives companies the confidence to invest.

“A decision driven too narrowly by modelled system cost would risk missing the bigger prize for the UK: clean power, domestic supply chains, energy security and a credible future for North Sea workers and communities.”

Scottish Business Minister Tom Arthur went on to say that if the energy secretary approves the blueprint as it is it would be proof that "the needs of Scotland were nothing but an afterthought" to the Westminster government.

He said: “Offshore wind represents a once in a generation economic opportunity for Scotland with the potential for thousands of jobs and supply chain opportunities to be created from a potential project pipeline of over 40 gigawatts.

“Any plan that does not put ScotWind projects at their heart could jeopardise this investment and damage Scotland’s economy.

"The UK Government must ensure Scotland’s full offshore wind potential is recognised and enabled in the SSEP, which is critical to maintaining developer and investor confidence.

"We also continue to call for accelerated grid connection dates and the replacement of the current transmission charging system, which continues to unfairly penalise Scottish renewable energy generators, putting them at a commercial disadvantage.

“Scotland has a bright future with renewables if the UK government does the right thing and fully backs them through the SSEP. If the UK government fails to back these vital projects, it would demonstrate that the needs of Scotland were nothing but an afterthought to them."

A Neso spokesman said: “The strategic spatial energy plan is Great Britain’s first national blueprint for where future electricity and hydrogen infrastructure may be needed.

“Commissioned by the UK, Scottish and Welsh governments, it brings together economic, technical, environmental and societal evidence to identify secure, affordable and sustainable pathways for meeting future demand.

“By providing clearer long-term direction, the SSEP will help unlock investment, strengthen supply chains, and support jobs and skills.

“Neso will submit six future energy system options to government later this summer. The UK energy secretary will then select one pathway to take forward.”

A UK Government spokesman said: “We continue to work with Neso on delivering the Strategic Spatial Energy Plan. Our clean energy superpower mission is the route to energy sovereignty, lower bills and thousands of good jobs in our communities.”

Sign up to read this article
Read news from 100's of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.