Exclusive:SNP warns Scottish snub in UK wind contracts would be 'devasting' for economy and green jobs

Scottish developers have previously missed out on offshore wind contracts for fixed-bottom offshore developments, amid fears another setback could mean 2027 risking becoming “the first year in over a decade with no new construction of offshore wind in Scotland”. The Green Volt floating wind project was successful in last year’s auction.

Contract for difference (CfD) is an auction where developers, who are seeking to build renewable energy projects, compete with each other for a contract with bids indicating a so-called strike price they need for their project.

Those developments with the lowest strike price are awarded contracts until the whole ‘budget’ for the allocation round is assigned.

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On Wednesday, the allocation round 7 (AR7) of projects will be announced - and SNP Energy Secretary Gillian Martin has warned that a further snub could have dire consequences for the economy and clean jobs north of the Border.

Scottish ports at Aberdeen, Ardersier, Leith, Dundee, Montrose, Peterhead and Fraserburgh have also warned that operations and investments at their facilities will be put at risk if no new wind farms in the country receive UK government backing.

Speaking ahead of the AR7 announcement, Ms Martin said: “Offshore wind presents an era-defining opportunity to grow our green economy for the benefit of communities across Scotland, while supporting our energy security and driving progress to net zero.

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“Allocation round 7 now risks becom­ing a third suc­cess­ive round of the UK government’s Contracts for Difference scheme without a Scot­tish fixed-bot­tom award at pre­cisely the moment our sec­tor needs support the most.”

She added: “This would mean that 2027 could become the first year in over a decade with no new construction of offshore wind in Scotland – risking undermining the significant momentum building in the sector.

“We have been crystal clear for some time that the Secretary of State should deploy the range of options he has available to him. He not only has the discretion to increase AR7 budgets where necessary, he could also use strategic procurements for key components, whilst mobilising the range of UK public finance institutions to support supply chains and protect existing investments.

“An auction round which fails to deliver for Scotland would be devastating for our economy, jobs and investment and would severely hamper our ability to secure a just energy transition.

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“It would also erode the progress made to date in offshore wind, including through our strategic investment to anchor critical supply chain projects and develop port infrastructure in Scotland.”

The senior SNP minister also warned that the UK government “also has the opportunity to provide more certainty on grid connection dates for energy generation and supply chain projects” and could also “remove the unfair transmission charging regime which penalises Scotland and fails to recognise that our renewables are at the heart of a modern clean energy system”.

She added: “The UK government has failed to head the strong and compelling calls from the energy sector on reforming the Energy Profits Levy which is impacting investment.

“The auction round cannot compound this damage.”

A UK government spokesman said: “We have recently introduced reforms to the current round, and will be announcing the offshore wind results of our flagship renewables auction tomorrow, demonstrating progress on our clean power mission by 2030."