Crown Estate Scotland has said an average of £1500m could be spent across each of the 17 offshore wind sites awarded in its recent ScotWind auction on supply chain commitments.
It comes as Crown Estate Scotland published the Supply Chain Development Statement (SCDS) Outlooks today, initial commitments from each of the successful applicants detailing how they intend to source products, materials and labour to construct and service their projects.
The initial £1.5bn projection takes into account all phases of work up to and including operations & maintenance.
Submitting an SCDS is a mandatory part of each bidder’s application for securing a lease agreement, which were signed with Crown Estate Scotland earlier this month.
Commitments will need to be updated throughout development as project specifics such as timing and technology become clearer and supply chain development progresses.
Colin Palmer, Director of Marine for Crown Estate Scotland, said: “The breadth and scale of these initial commitments from ScotWind developers is encouraging, as is their ambition to help Scotland reach net zero.
“However, the challenges in delivering on these ambitions – which will evolve as project details become clearer – should not be underestimated. It will require a truly collaborative approach from all involved to ensure the huge potential for transformative economic development, job creation, and a just transition is realised.”
Net Zero & Energy Secretary Michael Matheson added: “As the world’s largest offshore wind leasing round, ScotWind puts us at the forefront of the global development of offshore wind and represents a massive step forward in our net zero transformation.
“The publication of these supply chain outlooks demonstrates the truly unprecedented scale of the opportunities that this leasing round will present, not just for our regional and national economies, but to deliver a true just transition for our energy sector, harnessing existing talent and expertise and creating and delivering good, green jobs across Scotland’s supply chain.
“There will be some challenges to overcome as we embark on this exciting expansion in renewable energy – such as grid capacity and unfair transmission charging. The Scottish Government does not have the powers to resolve all these challenges, but we will continue to work with and, where appropriate, challenge the UK Government to address these barriers and ensure a just transition to net zero.
“Offshore wind is rapidly becoming one of the cheapest forms of electricity at our disposal to protect consumers and ensure our energy security whilst delivering our climate obligations, and the Scottish Government will use every lever at our disposal to harness to ensure a greener, fairer future for everyone.”