The UK Government has secured a record 8.4GW of offshore wind capacity in its latest renewables auction, but four years after awards were made, the Chamber has warned of urgent change required for ScotWind projects to win Contracts for Difference.
Allocation Round 7 (AR7) represents the largest Contracts for Difference (CfD) auction in British history and is expected to unlock £22billion of private investment and support around 7,000 jobs across the UK. Ministers say the outcome puts the country on track to deliver clean power by 2030.
Successful projects include Dogger Bank South off the coast of Yorkshire, Norfolk Vanguard in East Anglia, Berwick Bank in the North Sea – the first new Scottish offshore wind project to secure a CfD since 2022 – and Awel y Môr, the first Welsh project to win support in more than a decade.
Energy Secretary Ed Miliband said: “Clean, homegrown, power is the right choice for this country to bring down bills for good and this auction will create thousands of jobs throughout Britain.”
However, Aberdeen & Grampian Chamber of Commerce said the results underline persistent structural barriers preventing ScotWind developments from progressing through the CfD process.
Russell Borthwick, chief executive of Aberdeen & Grampian Chamber of Commerce, said: “We welcome support for projects such as Berwick Bank and any progress on floating offshore wind, which underline the scale of opportunity in the UK’s offshore energy industry.
“However, at a time when the North-east is grappling with thousands of job losses in the oil and gas sector, we continue to face major barriers that risk leaving our offshore wind pipeline stalled and investment on hold.
“Four years on from awards, not one ScotWind project has received a Contract for Difference, meaning the wait continues for these multi-billion-pound opportunities in our region to materialise and, without action, there is a risk these projects will not come forward in future rounds. Lengthy planning times and escalating and uncertain transmission charges are key barriers to delivery.
“These structural challenges must be addressed urgently so future allocation rounds can ensure Scottish projects can compete and succeed at scale - starting with the AR8 round expected to open later this year.”