RenewableUK has warned that delaying the 10GW ScotWind offshore wind leasing round is bad for investor confidence.
R-UK deputy chief executive Melanie Onn said: “Offshore wind developers will be dismayed by this latest delay to ScotWind, coming just weeks after Crown Estate Scotland opened applications for new leases.
“Having spent over a year setting out the process for awarding these new leases and making clear to developers what is required from them, Crown Estate Scotland is now rewriting the rules at the eleventh hour.
“Scotland has a unique opportunity to secure billions of pounds of investment in new renewable energy projects which will support thousands of jobs across the supply chain.
“Delays and U-turns are bad for investor confidence and for Scotland’s position as a world leader in offshore wind.”
Crown Estate Scotland said on 11 February that it had extended the deadline for applications at its ScotWind leasing process to review the option-fee structure.
The seabed landlord said the extra time will allow it to review the fee set up in the round in the wake of record bids seen at The Crown Estate’s Leasing Round 4 process off England and Wales this week.
Crown Estate Scotland said the decision has been taken with the support of Scottish Government ministers and said it will help ensure that the offshore wind leasing process attracts major green investment to Scotland by delivering long-term economic and net zero benefits through a competitive and sustainable pipeline of projects.
Crown Estate Scotland chair Amanda Bryan said: “The unprecedented outcome of The Crown Estate Round 4 process has, overnight, changed the market dynamics around offshore wind leasing, and could have significant implications for offshore wind development in Scotland.
“It is only right that we consider the implications of this new situation in relation to ScotWind leasing.
“Our team will now work on the details of how these latest developments can be properly reflected in the ScotWind Leasing option structure, and we’ll ensure our registered applicants, and the wider sector, continue to be kept engaged and informed.”
The result of the review of the option structure for ScotWind Leasing is targeted to be completed by 24 March 2021.
The deadline for applications to ScotWind leasing will now be later than 31 March 2021.
The updated closing date will be confirmed on completion of the review of the option structure.
Scottish Cabinet Secretary for Environment, Climate Change and Land Reform Roseanna Cunningham MSP said: “It is the Scottish government’s responsibility to secure a fair price for the seabed sites being leased for offshore wind developments around Scotland and to make sure that the people of Scotland benefit fully from decisions taken in relation to the Scottish Crown Estate.
“In light of the significant changes that we are now seeing in the wider UK offshore wind market, Ministers have agreed with Crown Estate Scotland that it would be sensible to review our leasing process in order to fully consider the implications of the recent auction outcome announcement by The Crown Estate UK for sites around England and Wales.”
Scottish Renewables chief executive Claire Mack said: “Developing an offshore wind farm does not begin and end with deploying turbines in the sea and our members have already invested many thousands of hours, and many millions of pounds, preparing to bid into the ScotWind Leasing process.
“That process, which industry was first told would conclude in January 2020, is already 14 months overdue.
“Those companies will therefore be disappointed and intensely frustrated at this further delay, as well as at the possibility that the goalposts will be moved at such a late stage.
“It is vital now that the scope of this review is as focussed as possible, and that any delay to the overall process is minimised in order to reduce uncertainty for industry.
“Scotland is already disadvantaged by its tougher seabed conditions and the higher electricity transmission charges projects here face.
“If offshore wind is to deliver on its potential for job creation and economic development in Scotland it is imperative that the processes through which this low-cost, reliable technology is deployed are as straightforward, and progress as rapidly, as possible, and we would urge Crown Estate Scotland and The Scottish Government to proceed quickly with that in mind.”