Scottish port operators have warned that recent investments in offshore wind infrastructure could be left stranded unless the UK government increases funding for fixed-bottom offshore wind projects, according to a report by the Scotsman.
Chief executives from ports including Aberdeen, Ardersier, Leith, Dundee, Montrose, Peterhead and Fraserburgh have written to Energy Secretary Ed Miliband calling for a higher budget in the upcoming Allocation Round 7 (AR7) of the government’s contracts-for-difference (CfD) scheme, the newspaper reported.
The port leaders cautioned that, without additional funding, no Scottish fixed-bottom offshore wind projects are likely to secure support in the auction, undermining investor confidence and threatening jobs across the supply chain.
“If realised, the consequences would be rapid for market confidence and severe ramifications for ports, workers and the wider supply chain,” the letter said, according to the Scotsman.
AR7 includes £900 million ($1.1 billion) earmarked for fixed-bottom offshore wind and £180 million for floating wind projects. The port operators warned that the £900 million allocation amounts to a 40% cut in real terms compared with previous rounds, the newspaper reported.
The letter noted that Scottish ports have already seen a downturn in traditional energy markets and have committed significant capital to prepare for offshore wind developments. These investments include spending on quayside expansion, dredging, fabrication facilities and vessel capacity.
“At the same time, ports across Scotland have made major capital investments… specifically to support a pipeline of Scottish offshore wind projects that have yet to materialise,” the letter said. It added that a “stop-start” approach to project deployment risked leaving critical assets and skills unused.
The port chiefs warned that AR7 could become the third consecutive auction round without a Scottish fixed-bottom offshore wind project securing support, at a time when oil and gas activity is declining and operating costs are rising.
They said this would put further pressure on port utilisation, delay or scale back investment at fabrication yards and heavy-lift sites, and weaken Scotland’s position in the UK offshore wind sector. Such an outcome would also “send a negative signal” to international investors, the letter said.
Urging the government to increase the AR7 budget, the port leaders argued that even a limited increase would help protect jobs, safeguard recent infrastructure investments and support the UK’s goal of building a balanced offshore wind supply chain as it works towards its clean power targets for 2030.
