Scottish offshore wind development has been “left in limbo” with developers more than halving annual investment in the sector, according to Scottish Renewables.
Figures released by the green energy body yesterday reveal that annual investment in Scottish offshore wind projects fell 55% in 2013 to £28.9million, from £63.6million previously. Total investment in the sector to date is £193.4million.
“Uncertainty throughout the industry is growing as none of the major projects planned for Scottish waters have had their planning applications determined yet, and the details around accessing market incentives are still unclear,” said Scottish Renewables policy manager Lindsay Leask.
“With around 5GW of potential offshore wind development in planning – enough to meet the annual demand of 3million homes – we can’t afford to see these projects, and the investment decisions related to them, left in limbo.”
Ms Leask warned that a 55% reduction in spending in the sector should be a “worrying sign” for both the Scottish and UK governments.
Scots Energy Minister Fergus Ewing last night said he had written to his UK counterpart, Ed Davey, to revisit “flawed” decisions recently made by the Department of Energy and Climate Change.
“I am disappointed at the absence of Scottish offshore projects from the Final Investment Decision (FID) Enabling for Renewables process,” said Mr Ewing. “Instead of putting barriers in the way of Scottish offshore wind deployment, the UK Government should be providing support, and we believe the Scottish projects have a strong case for being included in the FID enabling plan.”
Only one Scottish project – the Beinn Mhor onshore windfarm on the Eisgein Estate, on the Isle of Lewis – was included in a list of 10 “provisionally affordable” renewables schemes in the running for support under the new Contracts for Difference, developed as part of the UK Government’s electricity market reform.
Mr Ewing added: “We continue to seek improvements to the process of assessing applications for offshore wind developments, and I hope to receive recommendations from Marine Scotland in relation to developments in the Moray Firth.”
Last week, Scottish energy giant SSE said it was reviewing its offshore wind energy portfolio, warning that the prospects for investment in Great Britain were “not encouraging”.
The firm warned uncertainty over government support for offshore wind would result in reduced capital investment in coming years.
This follows Scottish Power’s decision, in December last year, to axe plans for a massive 1.8GW windfarm off the coast of Tiree – the £5billion Argyll Array.