Scotland’s booming offshore wind sector is at a critical juncture as uncertainty around key policy reforms risks derailing billions in investment, Scottish Renewables has warned.
With more than 40GW in the pipeline, Scotland ranks among the top ten global offshore wind markets.
Yet major investment decisions now hang in the balance, amid damaging proposals for zonal electricity pricing and unresolved issues around transmission charges.
Claire Mack, Chief Executive of Scottish Renewables said:
The UK Government will fail to meet its clean power objectives if it does not deliver vital Scottish offshore wind projects.
“Whilst green shoots are appearing, we can only drive future growth with a sustainable policy framework that will secure much needed private investment in renewable energy projects.
“This will give Scottish projects the confidence they need to navigate the increasingly challenging conditions at this watershed moment for our industry.”
Recent reports have laid out the scale of the opportunity:
- Scotland’s offshore wind pipeline could unlock up to £35 billion in public value over the next 40 years.
- Renewables represent £75 billion of the Highlands and Islands’ projected £100 billion investment value by 2040.
- Reforming Transmission Network Use of System (TNUoS) charges could save consumers £16.2 billion between 2028 and 2050.
- Zonal pricing uncertainty could flip an £8.9 billion benefit into a £9.6 billion cost.
The warning comes just days after Ørsted scrapped its Hornsea 4 project in England, citing soaring costs and increased risk.
Meanwhile, the UK Government is preparing to launch Allocation Round 7 of the Contracts for Difference (CfD) scheme, which guarantees a fixed price for renewable electricity.
This year’s auction is seen as make-or-break for meeting clean power targets by 2030.
Industry is urging ministers to act fast and clear the policy fog before the UK’s offshore wind ambitions stall.
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