ScotWind Leasing round to include 'commitment' to use Scottish supply chain
Register for free to read more of the latest local news. It's easy and will only take a moment.
Developers of offshore wind will have to make commitments to use Scottish businesses in the supply chain if they are to win future site leases.
The move is aimed at boosting the manufacturing and supply-chain side of the industry in Scotland, by increasing the number of contracts awarded to Scottish firms.
The agreement between the Scottish Government and Crown Estate Scotland was made on Thursday, January 16, when representatives from the UK government, trades unions and industry attended a summit in Edinburgh.
They were considering how to find solutions to ongoing issues facing the offshore wind supply chain.
Scotland's economy secretary Derek Mackay said: “Scotland is the ideal location for offshore wind, but recent projects have not delivered the significant economic opportunities we want to see for Scottish businesses.
“The Scottish Government has been calling for the offshore sector to do more by awarding contracts to our indigenous supply chain but recent disappointments suggest that more has to be done.
“I will use every lever at our disposal to ensure that our renewables supply chain benefits from the expansion of offshore wind in our waters, leading to the creation and retention of Scottish jobs.
“The measures agreed with Crown Estate Scotland will help to release more of those economic benefits for the Scottish economy and ensure that the Scottish-based supply chain is considered when tendering for work or making long-term conditions.”
The first ScotWind Leasing round is scheduled to launch in the spring, with a second round following in 2022.
The deal means that as part of future applications, developers will need to provide a supply chain development statement laying out the anticipated level and location of supply-chain impact from each phase of their proposed project.
These commitments will be written into agreements and updated throughout the project development, with "contractual consequences" if they are not adhered to.
Crown Estate Scotland says the statements will be provided by developers alongside any initial application for seabed rights and will be shared with public sector partners including the Scottish Government and enterprise agencies.
Colin Palmer, director of marine for Crown Estate Scotland, said: “Scotland has a unique potential when it comes to offshore wind, and we are committed to doing all we can to unlock that opportunity.
“As well as the environmental benefits of clean, green, energy, offshore wind also offers a fantastic opportunity for economic development in communities across Scotland.
“ScotWind Leasing will present Scotland as an attractive destination for the significant investment needed to deliver the scale of offshore wind projects we want to see.”
Renewables industry body Scottish Renewables said developers shared the commitment to help Scotland benefit from offshore wind developments.
Its chief executive Claire Mack said: “Industry continues to work hard to demonstrate its commitment to ensuring that the enormous economic benefits of offshore wind are felt as widely as possible in Scotland.
“Discussion at the summit showed industry, government and unions are united in their objective to ensure Scotland captures as much economic benefit from offshore wind as possible. Scottish projects can deliver local economic benefits while also growing our capability to exploit the export potential of the global offshore wind market.
“However, any measures which may reduce the competitiveness of Scotland’s offshore wind sector must be carefully considered and we will continue to work with the Scottish Government to deliver a vibrant and globally-attractive offshore wind sector as more details of the announcement are released.”
