Winds of change reveal a failure of policy

Whatever your views about recent court decisions, the economic challenges being faced by offshore wind will have more impact than any litigation.

Indeed, the whole focus of the offshore wind industry has moved steadily south with the few consented Scottish projects facing ongoing funding difficulties.

The problem is that the Scottish coast has very few shallow water sites close to shore which allow the economics of offshore wind, even under the existing subsidy regime, to stack up.

The south of England has plenty.

Last month, Siemens gained planning consent for a £170million wind turbine factory which will create hundreds of jobs. Its first customer is Scottish Power with an order for 100 turbines.

It would be pleasing to report that this development is to take place in Scotland which has so far failed, in spite of all the hype about renewables, to attract any job-creating project of this kind.

Unfortunately, Siemens have chosen Hull as the place to invest, because of its proximity to offshore developments.

While future subsidy for offshore projects is secure, albeit capped by the Contract for Difference auction process, there is no such certainty for onshore wind.

One of the new government’s tricky decisions is how to handle onshore wind subsidies in Scotland.

The Conservatives came to power with the promise that they would end onshore wind subsidies and it is relatively straightforward for them to implement this in England where there is a great deal of opposition to any land-based wind farm proposals.

However the Scottish situation is different, with the Scottish Government still strongly committed to onshore wind which is, really, the only renewables show in town.

However, the industry is dependent on subsidy paid for by consumers throughout the UK.

It would be a good argument for the new Energy Secretary, Amber Rudd, to sidestep by agreeing that Scotland should pursue its own policy even if a little bit of largesse from English consumers is involved.

The alternative is to walk straight into the allegation of killing off an industry which Scotland, generally, supports.

The real issue in Scotland should then be that, of the thousands of wind turbines now adorning our hillsides, only a handful have created a single manufacturing job here.

That is a failure of policy which the Scottish Government prefers not to talk about.