Scotland's offshore wind sector is facing a "watershed moment" due to ongoing uncertainty surrounding key government energy policies, according to Claire Mack, Chief Executive of Scottish Renewables.

Speaking at the All-Energy conference in Glasgow on Wednesday, May 14th, Ms Mack warned that damaging plans for zonal pricing and the lack of sustainable reform for volatile transmission charging are undermining major investment decisions anticipated in the coming weeks.

Scotland holds a significant offshore wind pipeline exceeding 40GW, with five projects already consented, eight in planning, and a further 22 under development, positioning the country among the top ten global offshore wind markets. Recent reports have highlighted the immense potential public value of this pipeline, estimated at between £29 billion and £35 billion over the next 40 years. Furthermore, renewable energy projects are projected to account for approximately £75 billion of the £100 billion in potential total investment value in the Highlands and Islands by 2040.

Industry figures suggest that reforming Transmission Network Use of System (TNUoS) charges could save consumers £16.2 billion between 2028 and 2050. However, uncertainty caused by proposals for zonal pricing is seen as a significant risk, potentially turning a purported £8.9 billion benefit into a £9.6 billion cost for consumers.


The warning from Scottish Renewables follows recent news that Ørsted has halted the development of its Hornsea 4 Offshore Wind Farm in England. The sector is also looking ahead to the UK Government's expected opening of bids for the Contracts for Difference (CfD) Allocation Round 7 (AR7) soon, an auction considered critical for meeting the target of achieving clean power by 2030.

Claire Mack told delegates that mounting policy uncertainty is directly hampering investor confidence across the sector. She stated: "Scotland's offshore wind potential clearly offers significant benefits for our economy and energy security. It is also clear that the UK Government will fail to meet its clean power objectives if it does not deliver vital Scottish offshore wind projects."

She called for urgent action: "Whilst green shoots are appearing, we can only drive future growth with a sustainable policy framework that will secure much needed private investment in renewable energy projects. This will give Scottish projects the confidence they need to navigate the increasingly challenging conditions at this watershed moment for our industry."

To maximise the potential of this year's AR7 auction, Ms Mack stressed the need for immediate certainty for offshore wind developers in Scotland regarding auction parameters, electricity market reform, and transmission charging arrangements. She also urged both the Scottish and UK governments to accelerate the pace of efficient consenting processes and the delivery of new grid infrastructure.

"Offshore wind is good for jobs, supply chains and has the potential to make household bills more affordable, so both governments should put their shoulder to the wheel on creating the best possible environment to build these vital projects in Scotland," she concluded.