Floating offshore wind at the heart of a new energy era

Hard things are hard, so read a plaque on President Obama’s Resolute Desk. Gifted in 2010, the plaque stayed in place until his departure six years later.

Closer to home, the UK’s offshore wind capacity increased sevenfold in that same period — a remarkable achievement powered by a decade of stable, supportive policy. Today, we stand on the cusp of another giant leap. 

Building on a strong operational fleet with strategic assets like Seagreen, Moray East and Moray West, we now have a future pipeline of more than 40GW — including around 25GW of pioneering floating offshore wind with projects such as Green Volt, Salamander and Pentland.

But the world is a very different place to 2010. Global shocks have exposed the UK’s energy insecurity as we grapple with high capital costs, sticky inflation and sluggish growth.

At the same time, we are pushing ahead with the biggest transformation of our national energy infrastructure and supply in decades — a transition built largely by private capital.

It’s a leap we cannot afford to miss, but neither can we assume it will simply happen. Our energy transition is facing some of its biggest tests yet — and nowhere is this more acute than in Scotland.

The age and stage of Scotland’s offshore energy sectors are poles apart: mature oil and gas assets on one side, emerging offshore wind projects on the other. But both are now slowing and without intervention, we risk stalling Scotland’s energy future.

Balancing the managed decline of one sector while accelerating the growth of another is a tall order — but entirely possible with the right interventions.

We’ve already taken huge strides to advance the development of the ScotWind and INTOG projects with major investments in our supply chain as a result. 

But in the weeks ahead, we need to create a more attractive investment climate to kickstart cost reduction and project construction. 

Replacing the Energy Profits Levy and boosting the budget for Allocation Round 7 would mark a strong start for Scotland and the UK.

We also need to build longer-term resilience. That is hard in a world of quick takes and instant expectations, yet projects of national scale and their associated benefits take years to deliver. 

Scotland should take confidence that we have every advantage: a globally significant energy skills base, world-class subsea expertise and some of the best natural resources on the planet.

Decades of experience built in the North Sea give us a golden opportunity to redeploy strategic infrastructure, sustain jobs and export our capabilities worldwide.

At the heart of this new energy era will be floating offshore wind. Our ambition to lead the world is not self-congratulation — it is a rallying call to use these strengths before others do.

That will demand more predictable auctions. Contracts for Difference is the right mechanism, but an annual rollercoaster that underperforms will deter investment and restrict value from reaching consumers and communities. 

It will also require new ways to secure the most tangible benefits of this transition — jobs, training and regeneration. That means a stable flow of contracts in our ports, build-out of new electricity networks and support for the heavy industry that can manufacture turbines, cables and foundations in the UK.

Hard things are hard — but the hardest things can also be the most transformative. 

Allowing our offshore wind ambitions to wither would be harshly judged in the years ahead, as investment and opportunity drift overseas. Politicians seeking quick headlines would be wise to reflect.

But if we seize this moment, we can build a future powered by secure, affordable, homegrown energy — and with it, a more resilient economy for generations to come.

Claire Mack OBE

Chief Executive – Scottish Renewables