Can greater consenting certainty help to mitigate some challenges facing the offshore wind industry?

In recent years, successive UK and Scottish governments have consistently supported offshore wind. We’ve seen this not only in their words but also their policies. However, businesses in the sector are still tackling serious challenges.

Many of these, such as supply chain costs, have their roots in global events. Governments are rightly focussing on what they can do to address problems closer to home, and one such action is implementing a strong policy footing that improves certainty in the consenting process.

The Scottish Government is currently considering two consultations that are relevant here. One concerns proposals for a new target for the energy generation capacity of offshore wind (40GW by 2035-40). The other is on an update to the route-map to achieving that goal (the Sectoral Marine Plan for Offshore Wind Energy, or SMP-OWE). Together, these proposals are intended to chart the path for offshore wind in the coming decades, and provide confidence and clarity for everyone involved in the sector.

There is no denying that economic conditions are challenging, and securing investment can be difficult. But we are confident that implementing these proposals – with some changes – would create a more favourable consenting environment and be a big step towards realising the potential of Scotland’s offshore wind industry.

Update to the 2020 Offshore Wind Policy Statement: Scotland’s Offshore Wind ambition

A new target for offshore wind capacity is much needed. The Scottish Government has proposed that it should be 40GW by 2035-2040.

The date is important. Much current policy is focused on 2030, so the new target signals to industry that the government’s ambition extends beyond that. When taking decisions on granting consent for offshore wind projects, Scottish Ministers have to weigh up the pros and cons of an application. With the scale and location of the pipeline of offshore wind developments, some negative effects are inevitable and so a policy target that sets a clear ambition provides critical context within which to consider individual development proposals.

However, we believe the policy target could be improved. A hard date rather than a range would make it easier to identify which projects were contributing to the target, and provide clearer direction for those who determine consent for proposed developments.

As for the capacity target itself, the consultation asks: “Is the target ambitious enough”? Targets should be achievable but also stretching. The bolder the target, the bigger the prize – establishing and maintaining a credible pipeline of projects and unlocking the investment which comes with it. At the very least the target must be a demand on our ambition, not a cap on it.

Draft updated Sectoral Marine Plan for Offshore Wind Energy (SMP-OWE)

The SMP-OWE is designed as a framework for ongoing leasing round projects. When deciding on consent for these projects, Ministers have to consider how the proposals, their effects, and planned mitigation measures align with this blueprint.

As re-drafted, the SMP-OWE will indeed provide a framework against which projects can be considered. But vital questions are left unanswered, and it is overly focused on the constraints rather than the opportunities.

Importantly, there is no explanation of how the “core objective” of maximising low carbon electricity delivery should be balanced against the potential adverse impacts of generation. The UK Government’s National Policy Statements include a strong presumption in favour of consent for “Critical National Priority Infrastructure”, which includes offshore wind. A similar presumption should be part of the SMP-OWE.

All progress is useful, but the current proposals could be improved. Meeting the new capacity target will require a big increase in offshore wind infrastructure – and quickly. That means we need frameworks that truly guide decision-makers when they are assessing new proposals.

Only then can we fully realise the potential of Scotland’s offshore wind sector.

shepwedd.com

Shepherd and Wedderburn will be attending the Floating Offshore Wind Conference, taking place in Aberdeen on 12-13 November at the P&J Live. Visit us at stand H65.

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