Scotland’s renewable energy industry contributed more than £15 billion in economic output and supported over 47,000 jobs in 2022, according to a new report by the Fraser of Allander Institute at the University of Strathclyde.
The study, commissioned by Scottish Renewables, assessed the economic footprint of the sector and its supply chain using the most recent data available. Offshore wind remained the largest contributor, supporting 19,580 full-time equivalent (FTE) jobs and generating £6.8 billion in output. Onshore wind followed closely, supporting 16,865 FTE roles and producing £6.4 billion in output, while hydropower and renewable heat contributed £1.4 billion and 4,095 FTE roles, respectively.
“These figures provide a standalone snapshot of the renewable energy sector’s performance in 2022 and reflect a period of both increased demand and economic pressure,” the report noted.
Claire Mack, Chief Executive of Scottish Renewables, said the report highlights the sector’s role in addressing both energy and economic challenges. “This report from the Fraser of Allander Institute offers an important snapshot of the economic value our members are creating as we move toward a future powered by clean, home-grown renewable energy,” she said.
“It reflects what we know about the activity in the industry through the development, construction and operation of major projects such as the Moray East offshore and Viking onshore windfarms,” Mack added. “Scotland is set to play a key role in achieving the UK’s clean power goal for 2030.”
The data was compiled using estimates from the UK’s Office for National Statistics (ONS), as more detailed regional data is not yet available through official government sources. The authors stressed the need for more robust and consistent data collection.
“The economics of the industry are changing and becoming more challenging, which can be seen in the squeezed gross value added (GVA) for the industry in 2022,” said Professor Mairi Spowage, Director of the Fraser of Allander Institute. “Policymakers must continue to focus on creating competitive conditions for renewable energy to ensure we reap the economic benefits of the energy transition.”
The report noted that while the energy crisis spurred demand for renewables, it also introduced cost pressures, including supply chain disruptions and increased material prices, which affected project delivery and job creation.
Scottish Renewables and the Fraser of Allander Institute plan to continue monitoring the sector and aim to publish an updated report with a consistent time series by early 2026.
