Crown Estate Scotland is considering introducing rules to terminate seabed leases if developers fail to stick to supply chain promises.
The lease agency confirmed in an update on the Supply Chain Development Statement, proposed by the Scottish government earlier this month, that it is mulling a series of enforcement measures.
The potential introduction of rules to terminate leases was first reported by subscriber-only reNEWS last week.
CES said the statements must set out the level and location of supply chain impact broken down by project stage from development and consenting to construction and operation and maintenance.
The blueprints will require geographic locations of activity. The statement will be incorporated into lease agreements and a “process of regular reporting” will be put in place.
“In support of this Statement, applicants will be expected to present evidence-based information on how it can be fulfilled.”
Through the option period of leases there will be an opportunity to update the statement, setting out the reasons for any changes. However, CES will not be required to accept an update if supporting information does not provide sufficient justification for any change.
CES plans to consult on the proposals before ScotWind starts in the spring and will confirm the final arrangements “in sufficient time” ahead of application submissions.
“The closing date for applications to ScotWind Leasing will be after the Sectoral Marine Plan for Commercial Scale Offshore Wind has been finalised and adopted. When we have clarity on the date of the final adoption of that plan we will confirm the closing date for applications and the final details of any other aspects of ScotWind Leasing, including the final Supply Chain Development Statement arrangements,” added CES.
“Of key importance to Crown Estate Scotland is that this process is carried out in a way which is clear, open and transparent.
“These measures, we believe, offer applicants the chance to help identify joint opportunities and develop supply chain networks, as well as providing a clear route to demonstrate their progress on the industry’s stated supply chain ambitions.”