Exclusive:Warning Andy Burnham poised for ‘full-frontal attack’ on Scotland’s offshore wind industry
The UK government has signalled that Scotland’s offshore wind sector could fail to be supported under a revised energy strategy from Westminster
Andy Burnham’s government has been accused of “gearing up for a full-frontal attack” on Scotland’s renewables industry after the Chancellor signaled a pivot away from supporting energy projects north of the Border.
The criticism comes after The Scotsman revealed that the Scottish government’s flagship ScotWind projects, particularly floating wind proposals which make up around 60 per cent of the plans, are facing severe difficulty in moving forward.
Concerns have been raised over the slower than expected pace of floating wind manufacturing and supply chains emerging alongside costs remaining higher than hoped.
The Scottish offshore wind industry has repeatedly called for Westminster to improve transmission charges and grid connections.
Scottish developments, which are further away from mass energy demand in south east England, have historically struggled to obtain grid connections.
Transmission charges also make projects in Scotland uniquely more costly than England. In 2030-31 Scottish offshore firms will pay £1bn to Westminster while projects in England and Wales will receive a net payment of £435.67m.
But Chancellor John Healey and his ministers have now raised the prospect of removing support from Scottish renewables in a further blow to the key industry north of the Border.
Mr Healey has confirmed that “we will not give the go-ahead to energy generation projects in the future unless they will bring cheaper energy and they can connect to the grid”.
Treasury minister, Dan Tomlinson, highlighted a shift to ensure the UK is “siting assets in the right places” which could potentially benefit schemes closer to south east England in future contract auction rounds.
SNP energy spokesperson Graham Leadbitter said: “The Labour UK government has prepared the ground for a full-frontal attack on Scottish offshore wind. Make no mistake, they are gearing up for assault on our energy future.
“The Budget, crippling transmission charges and a plan that could destroy ScotWind projects form the trident that Westminster will wield to ruin investment in Scottish renewables.”
He added: “Nearly £100bn worth of ScotWind projects are now under direct threat from the Labour UK government and the Budget made matters worse.
READ MORE: Scottish energy jobs and billions of investment 'in jeopardy' over Labour renewables pivot
“Unbelievably, while they move to shore up investment in Scottish offshore wind, Westminster pockets the revenues from the oil and gas industry.
“The SNP is absolutely clear. It is Scotland’s energy and every single penny from our oil and gas should be put into Scotland’s renewables future. That is how you deliver net zero, jobs and our energy security.”
The concerns come amid fears that the UK government could turn its back on ScotWind projects further through the crucial strategic spatial energy plan (SSEP).
READ MORE: Stalled floating offshore wind projects risks leaving Scottish ports as 'stranded assets'
The SSEP will map potential energy production, storage and grid requirements over the coming decades, with the industry believing it is vital in encouraging investment in technologies such as floating wind.
SNP energy minister Stephen Gethins said: “The SSEP will have a significant impact on Scotland’s renewable industry and supply chain, and we have been clear that the final plan must reflect Scotland’s full renewable energy potential to secure jobs, investment and supply chain opportunities.
“The United Kingdom Government must produce that plan as soon as possible, so that we can deliver our transition to net zero. Anything less risks jeopardising billions of pounds in investment, jobs across Scotland and energy security.”
A UK government spokesperson said: “These claims are pure speculation, jumping to conclusions about reforms that haven't even been put out for consultation.
“Scotland is central to Britain's clean energy future. We're determined to unlock its huge offshore wind potential, bringing good jobs and investment to communities.”
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