‘Slow pace’ warning over Scottish Government offshore wind supply chain programme

Energy minister Stephen Gethins has defended the Scottish Government’s offshore wind supply chain after a watchdog raised concerns about its “slow pace”.

The five-year Offshore Wind Investment Programme has £500m to speed up the creation of the infrastructure needed for renewables projects.

But since it was set up in 2023, just £141m of that has been committed, and Audit Scotland found there is “no clear plan” for what happens after 2028-29.

Reduced investor confidence and broader regulatory issues are amongst the reasons for the current level of investment, along with governance issues and a data breach which happened early in the programme.

Audit Scotland found the work is “broadly on track” to achieve the aim of generating £3 in private investment for every pound of public money spent. As much as £413m has been secured to date.

However, most investments made through the programme have been grant-based, not loans or equity. A report published today warns that this limits the potential to get money back and could increase costs to the public.

The majority of private investment so far relates to a single subsea power cable manufacturer in the Highlands.

Auditor General Stephen Boyle said: “The Scottish Government’s project to stimulate investment in offshore wind infrastructure has made some progress, but it is slow going and there are clear risks to the programme. The government must address these quickly.  

“Strengthening the programme's governance and delivery arrangements and developing a clear plan for the future will help reduce uncertainty for delivery partners and investors, and give the programme the best chance of being successful.”

However, Gethins said: “This crucial programme is supporting investment in the infrastructure needed to realise Scotland's offshore wind ambitions and I welcome Audit Scotland’s constructive recommendations on ways it can be strengthened. We have already implemented a number of these with our delivery partners, with work on the others actively underway. 

“The programme is already delivering significant results for people and businesses. When wider funding for Ardersier Port is factored in, we have invested more than £191m, attracting £70m from public finance institutions and up to £713m in private investment into projects with the potential to support up to 5,000 jobs. 

“We have responded to changing market conditions and targeted support where it can provide the greatest confidence to investors, but we need the UK Government to step up now to remove barriers and provide the confidence the market needs in order to accelerate investment. 

“The Scottish Government will continue to deliver high-value projects that strengthen Scotland's offshore wind infrastructure and maximise the economic opportunities of the energy transition.”