Scottish Renewables has welcomed the results of AR7 as a “much-needed boost” for Scotland’s offshore wind sector.
The trade body said the two projects in Scottish waters awarded Contracts for Difference would add to the £15bn of economic benefits and 47,000 jobs already delivered by the country’s renewables industry each year.
Claire Mack, Scottish Renewables’ chief executive, added that successful bids had been made for SSE’s 1.4GW Phase B of Berwick Bank and CIP’s 100MW Pentland floater despite business case challenges on grid charging.
She has urged the UK government to continue working with the industry to “urgently find solutions to the prohibitive grid charging regime” to allow Scottish projects to “compete fairly” in future CfD auctions.
Mack said: “Scotland has not been awarded a fixed offshore wind CfD since 2022, so it is hugely encouraging to see the success of SSE’s Berwick Bank which is set to energise Scotland’s offshore wind market and boost confidence in our supply chain.
“It is worth noting that Berwick Bank is the only fixed bottom project to be awarded a CfD and it connects into a significantly lower cost transmission zone in the south of Scotland compared to other eligible projects which missed out that would have connected into those higher price zones in the north.
“With a strong track record of building infrastructure projects, Scotland has utilised its expertise and delivery track record to be competitive despite all the additional pressures Scottish projects face when bidding for a CfD, including disproportionately higher grid charges than other parts of the UK.
“While this outcome is welcome news for consumers, achieving a lower-cost, secure, stable and geographically diversified energy system in the long term requires a fairer approach to connecting projects to the grid and enabling them to deliver power, regardless of where they are located.”