Offshore wind power auction a ‘missed opportunity’, Scottish Government says

The UK Government’s record achievement of offshore wind power is a “missed opportunity” in Scotland due a limited budget and “unfair” transmission charges, the Scottish Government has said.

The UK Government has secured record amounts of offshore wind power in an auction that officials insisted is good for consumers and investment.

The latest round of contracts under flagship renewable energy auctions, known as Contracts for Difference AR7, is delivering 8.4 gigawatts (GW) of offshore wind, which is the amount experts have said was needed this year to keep the Government on track to meet its “clean power” by 2030 pledge.

They comprise six new wind farm projects around the country, which will be paid £91 per megawatt hour on average for the power they generate.

They include Berwick Bank, in the North Sea, the first new Scottish scheme since 2022 and the largest planned offshore wind project in the world, and Pentland, located off the coast of Dounreay in Caithness.

Energy Secretary Ed Miliband hailed the projects as a “historic win” that would bring down energy bills “for good”.

He said: “With these results, Britain is taking back control of our energy sovereignty. This is a historic win for those who want Britain to stand on our own two feet, controlling our own energy rather than depending on markets controlled by petrostates and dictators.

“It is a monumental step towards clean power by 2030 and the price secured in this auction is 40% lower than the alternative cost of building and operating a new gas plant.

“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, the Scottish Government said “much more” could have been achieved and Scottish projects will be at a “competitive disadvantage” due to “unfair” transmission charges.

Scottish Energy Secretary Gillian Martin said: “Whilst it is welcome that two Scottish offshore wind projects (Berwick Bank Phase B and Pentland) have secured a Contracts for Difference (CfD) award in allocation round seven (AR7), much more could have been achieved at this pivotal moment.

“These projects are important for unlocking economic benefits and driving innovation in the sector, and will play a key role in delivering Scotland’s and the UK’s energy security.

“Unfortunately, though, once again, this also represents a missed opportunity.

“We have repeatedly warned that a limited AR7 budget and unfair transmission charges would put Scottish projects at a competitive disadvantage, despite holding more than a third of the total UK offshore wind pipeline.”

Ms Martin said the charges should be “fundamentally changed” ahead of allocation round eight.

She said: “These results clearly demonstrate the impact of the UK Government decisions not to address the unfair and disproportionate  transmission charges to ensure level a playing field for Scottish projects. This must be fundamentally changed ahead of allocation round eight (AR8).

“We call on the UK Government to act urgently to support the deployment of our strong project pipeline: there were a number of Scottish projects eligible for AR7 and we now must see those – and others in the pipeline – succeeding in AR8.

“The Scottish Government will continue to do everything in our power to support the delivery of our offshore wind pipeline, including by investing strategically to anchor the supply chain and develop port infrastructure.”

Scottish and Southern Energy (SSE) said the organisation is “delighted” at the successful announcement of Berwick Bank B.

Chief executive Martin Pibworth said: “We are delighted Berwick Bank B has been successful in AR7 and has secured a CfD for 1.4GW of essential new low-carbon power for the UK at a competitive price for consumers.

“If built to its full projected capacity of more than 4GW, Berwick Bank wind farm can rank among the largest offshore wind projects globally.

“It would represent the single most significant contribution toward achieving the Scottish and UK governments’ offshore wind targets, and can accelerate the delivery of homegrown, affordable and secure clean energy to UK consumers from excellent Scottish offshore wind resources.”