Scotland’s steadfast commitment to offshore wind reflects its dedication to mitigating climate change and transitioning to cleaner, more sustainable energy sources. While there are existing and planned fixed-bottom offshore wind projects in Scottish waters, the long-term outlook for the industry in the country hinges on the success of floating offshore wind.

In last year’s Scotwind auction, Crown Estate Scotland awarded leases for a staggering 25 GW of planned floating offshore wind projects, in addition to the 8.4 GW to 11 GW of capacity already targeted by the Scottish Government by 2030.

Floating offshore wind holds the key to unlocking Scotland’s vast wind energy potential, and thanks to abundant wind resources in deep waters, Scotland is uniquely positioned to lead in this emerging field. The Scotwind sites, with development timescales spanning over a decade beyond 2030, offer a glimpse of the industry’s future, with significant investment set to flow into these projects through supply chain commitments.

However, to effectively direct Scotland’s appetite for progress in offshore wind, several key strategies should be employed, and the UK government, as the central entity defining most support mechanisms for energy infrastructure, has a pivotal role to play in supporting the growth of the offshore wind sector in Scotland. There are a number of key measures that both the UK government and the Scottish government, as well as other entities, should introduce to support growth and reduce inflationary pressures.

Investing in infrastructure and development

Developing a robust infrastructure that includes ports, harbours, and grid connections is crucial for the successful deployment of floating offshore wind projects. Ports and harbours, in particular, are essential for constructing and servicing offshore wind projects and should be prepared for the additional foundation storing (wet or dry) and servicing (tow to port) challenges that floating offshore brings. An added benefit is that these investments not only support the industry, but also create jobs and stimulate economic growth.

The UK government should also promptly review and adjust Contracts for Difference (CfD) contracts and strike prices to ensure that they are financially attractive for both fixed-bottom and floating offshore wind projects. This is particularly important to accommodate the unique challenges and higher costs associated with floating offshore wind. A transparent roadmap for CfD auctions and allocation rounds, with regular reviews to adapt to market conditions, is crucial for investor confidence.

In fact, a clear and comprehensive roadmap for the development of floating offshore wind sites is essential. Roadmaps provide certainty to investors and the supply chain, fostering confidence and attracting more investment.

Key reforms and initiatives

Streamlining consenting processes and establishing clear timelines will also help minimise delays and uncertainties. Licensing and consenting processes should be clear, predictable, and expedient. This will ensure developers have a clear understanding of the regulatory landscape, which will then encourage participation and investment.

The UK government would also benefit from introducing initiatives akin to the European Union Green Deal or the American Inflation Reduction Act to mitigate inflationary pressures. These policies can help manage costs and ensure the affordability of offshore wind energy. Aligning with green initiatives, such as the Scottish government’s Energy Strategy and Just Transition Plan, can provide a holistic framework for sustainable growth in the sector. The Emerging Energy Technologies Fund (EETF), meanwhile, can further stimulate innovation and research.

Local content obligations, also known as local content requirements (LCRs), should be reviewed. These regulatory measures, requiring a certain portion of the components, materials, or services used in a particular project to be sourced locally or domestically, have had both positive and negative effects. Striking the right balance between supporting the local economy and maintaining project efficiency and competitiveness is crucial. A phased and gradual implementation of these may reduce the negative impacts in project economics whilst still guaranteeing local supply chain development.

Encouraging standardisation of foundations and promoting economies of scale also stands to help Scottish wind power progress. Collaboration with and among organisations like the Crown Estate, Carbon Trust, and Ore Catapult can drive innovation and lower costs to the sector’s benefit.

Scotland’s offshore wind energy projects signify a profound appetite for progress and a vision of a greener future, reflecting a commitment to a more sustainable future. But this progress needs to be directed effectively. The best way to accomplish this is through investment in infrastructure, a clear development roadmap, adjustments to CfD processes, and more streamlined consent processes. Mitigating inflationary pressures and fostering innovation will also be key to ensuring the sector’s continued growth and success. By embracing these measures and addressing critical success factors, Scotland and the UK government can pave the way for a cleaner, greener, and more sustainable future powered by offshore wind energy.