ScotWind developers set out latest multi-billion-pound supply chain commitments

The latest projections for 16 ScotWind projects show an increase in supply chain commitments compared to the previous forecast for these 16 projects.

The analysis, undertaken by EY Parthenon, shows the average predicted spend per project in Scotland has risen to £1.6 billion per project, compared to £1.5 billion per project in 2023. This totals £25.5 billion across the 16 projects and considers all phases of work up to and including operations and maintenance.

The latest plans – called Supply Chain Development Statement (SCDS) Outlooks – which form the second update since ScotWind option agreements to lease areas of seabed were awarded in 2022, provide the most comprehensive dataset to date, with the ability to track more accurately developer commitments, identify trends and understand where intervention is needed, as well as assisting investors and developers to make better informed decisions.

Alongside the latest SCDS Outlooks, Crown Estate Scotland has launched a new interactive data platform, transforming ScotWind supply chain data into a practical tool for industry, investors and policymakers. The dashboard provides unprecedented visibility of future offshore wind supply chain demand and will help inform investment decisions across Scotland's offshore renewables sector.

The update confirms the scale of opportunity that offshore wind provides for Scotland’s economy, communities and businesses. The data indicates that project spend has been maintained despite global headwinds, including rising costs, grid connection delays, supply chain bottlenecks and access to skills. These commitments demonstrate the scale of opportunities available for Scotland’s experienced offshore energy supply chains to capitalise on and to use the decades of knowledge accumulated from the oil & gas sectors.

Mike Spain, Crown Estate Scotland’s Interim Director of Energy & Infrastructure, said: “ScotWind offers an exceptional opportunity, supporting the transition to green power, increasing the UK’s energy security and providing the potential for thousands of new jobs. But that prize will only be secured by working collaboratively to target support and investment where it is needed most to overcome the challenges faced by the sector.

“Confidence in developing offshore wind projects in Scotland remains steady despite ongoing challenges around grid capacity and transmission charging. Crown Estate Scotland’s role is to focus on the scale of the opportunity, using SCDS data as a practical tool to support collaboration across industry, government and the supply chain, and to help drive the partnerships needed to continue turning ambition into delivery.”

The ScotWind Leasing programme was designed to ensure that focus, from the outset, would be on developing supply chain capacity to deliver projects and support wider economic benefit. Crown Estate Scotland mandated that applicants must outline supply chain commitments as part of their application for an Option Agreement, with commitments then updated throughout development as project specifics such as timing and technology become clearer, and the development of the supply chain progresses.

The outlooks can be viewed here.