Scottish port bosses warn their investments could become stranded without increased UK government funding for fixed-bottom offshore wind.
A group of ports have written to Energy Secretary Ed Miliband seeking a higher AR7 budget, warning no Scottish offshore wind farms will secure CfDs, according to the Scotsman.
Chiefs from Aberdeen, Ardersier, Leith, Dundee, Montrose, Peterhead and Fraserburgh have written the letter, according to the newspaper.
Their letter said: “If realised, the consequences would be rapid for market confidence and severe ramifications for ports, workers and the wider supply chain.”
The port leaders added: “Scottish ports have already experienced a significant contraction in traditional energy markets.”
They stated: “At the same time, ports across Scotland have made major capital investments in quayside space, dredging, fabrication and vessel capacity specifically to support a pipeline of Scottish offshore wind projects that have yet to materialise.”
The letter continued: “These investments only deliver value if supported by a continuous pipeline of Scottish projects – a ‘stop-start’ deployment risks stranding critical assets and skills.”
AR7 includes £900 million for fixed-bottom offshore wind and £180m for floating projects, with port chiefs warning the £900m allocation represents a 40% real-terms cut, according to the newspaper.
Their letter added: “AR7 now risks becoming a third successive round without a Scottish fixed-bottom award at precisely the moment our sector is absorbing reduced oil and gas activity and rising operating costs.”
It said: “Port utilisation would come under further pressure, fabrication yards and heavy-lift sites would face delayed or scaled-back investment and fewer new jobs, [and] Scotland would risk losing grounds in the UK offshore wind build-out.”
The port chiefs said this would “send a negative signal” to global investors and deepen structural barriers facing Scottish projects.
Their letter continued: “In effect, Scottish projects risk being priced out before the auction even begins.”
They urged the UK Government to increase the AR7 budget, saying a “modest uplift” would “help safeguard recent investments in infrastructure, protect jobs, and preserve the UK’s ambition for a robust, geographically balanced offshore wind supply chain and progress towards clean power 2030.”