The Scottish government has called on London to change the Contracts for Difference process to incentivise more local content following reports a foundation deal for EDF Renewables’ 450MW Neart na Gaoithe wind farm has been placed abroad.
Holyrood Finance Secretary Derek Mackay said the CfD process should be “reviewed” to make sure it “provides value for money for the whole economy”.
“The CfD mechanism has encouraged competitive prices for electricity but has also set off a race to the bottom that will inevitably see work go to yards outside the UK,” he said.
Mackay was speaking while debating a Labour motion calling on the Scottish government to back trade union calls for EDF to use BiFab facilities in Fife to make a significant portion of Neart na Gaoithe’s 54 turbine jackets.
He said the CfD process is “an ideal opportunity” to hold developers to account over local content commitments.
Mackay said the Scottish government is separately “exploring a range of potential regulatory instruments, levers and powers” to ensure offshore wind delivers fabrication jobs in Scotland.
Labour MSP Richard Leonard, who tabled the motion, said it will be “a betrayal” if the jackets for the Neart na Gaoithe, which is located off Fife, are fabricated abroad.
“Companies like EDF should not be exempted from responsibility. Promises made should be kept,” he said.
Leonard said the foundation contract has the potential to create 1000 local jobs.