A coalition of 17 offshore wind developers, representing approximately 33GW of Scotland's future clean power capacity, has called on the UK Government to immediately dismiss zonal pricing proposals.

In a joint letter addressed to Prime Minister Keir Starmer and First Minister John Swinney, the developers, supported by industry bodies including Scottish Renewables, have warned that the "unmanageable risk" posed by zonal pricing could jeopardise investment and render projects unviable.

Zonal pricing, currently under consideration by the UK Government, would divide the country into distinct pricing zones, resulting in variable electricity costs for consumers. The industry contends that this approach could lead to increased energy bills for both households and businesses. Analysis suggests that even a minor rise in renewable project construction costs would outweigh any potential savings from zonal pricing.

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Scottish Renewables is advocating for a Reformed National Market, a suite of measures designed to enhance existing market structures. They argue that this alternative would be more effective than zonal pricing.

Claire Mack, Chief Executive of Scottish Renewables, stated: "As we ramp up the delivery of clean power projects across Scotland, zonal pricing has become a dangerous distraction which risks derailing these vital new developments for energy security. Any theoretical benefits of zonal pricing have not been convincingly demonstrated and would take at least seven years to deliver."

Mack emphasised Scotland's role as a key investment hub for clean energy infrastructure, but cautioned that "to maintain and accelerate this momentum, it is imperative that these critical projects are safeguarded against the increasingly complex challenges we face in the current economic landscape."

She added: "The renewable energy industry stands ready to support positive reforms which will offer a double win for consumers and industry, such as modernising unfair transmission charges. These are reforms which require considerable focus from government to deliver but will improve rather than impair industry."

The coalition is urging the UK Government to "rule out zonal pricing and commit to workable reforms which ensure industry can deliver the high-value jobs, new supply chains and affordable energy which are crucial for the future prosperity of our country."