Scotland’s £500 million Offshore Wind Investment Programme is making slow progress and faces risks to meeting its targets, according to a new report from Audit Scotland.
The programme, launched by the Scottish Government in 2023, was designed to boost the offshore wind supply chain by supporting key infrastructure and manufacturing projects.
Audit Scotland’s report, published on today, October 1, found that £141 million had been committed across 17 projects so far, with progress affected by reduced investor confidence and wider regulatory issues.
The programme was established to help unlock billions of pounds of supply chain opportunities expected from the construction and maintenance of Scotland’s 18 ScotWind offshore wind development projects.
It operates through a collaborative investment model involving the Scottish National Investment Bank, Highlands and Islands Enterprise and Scottish Enterprise.
However, Audit Scotland found that the approach had been significantly weakened following an early data breach, while issues around project monitoring, funding and risk management had also affected delivery.
The report also raises concerns about the programme’s longer-term direction, noting there is currently no clear plan for what will happen beyond 2028/29.
The programme is broadly on track to meet its target of generating £3 of private investment for every £1 of public funding. However, most of the £413 million in private investment secured so far relates to a single project.
That project is a £350 million high-voltage subsea power cable manufacturing plant at the Port of Nigg in the Highlands, which has received £24.5 million in public sector funding.
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Stephen Boyle, Auditor General for Scotland, said: "The Scottish Government’s project to stimulate investment in offshore wind infrastructure has made some progress, but it is slow going and there are clear risks to the programme.
"The government must address these quickly.
"Strengthening the programme’s governance and delivery arrangements and developing a clear plan for the future will help reduce uncertainty for delivery partners and investors, and give the programme the best chance of being successful."
Commenting on Audit Scotland's report on the Scottish Government's Offshore Wind Investment Programme, Energy Minister Stephen Gethins said: “This crucial programme is supporting investment in the infrastructure needed to realise Scotland's offshore wind ambitions and I welcome Audit Scotland’s constructive recommendations on ways it can be strengthened. We have already implemented a number of these with our delivery partners, with work on the others actively underway.
“The programme is already delivering significant results for people and businesses. When wider funding for Ardersier Port is factored in, we have invested more than £191 million, attracting £70 million from public finance institutions and up to £713 million in private investment into projects with the potential to support up to 5,000 jobs.
“We have responded to changing market conditions and targeted support where it can provide the greatest confidence to investors, but we need the UK Government to step up now to remove barriers and provide the confidence the market needs in order to accelerate investment.
“The Scottish Government will continue to deliver high-value projects that strengthen Scotland's offshore wind infrastructure and maximise the economic opportunities of the energy transition.”
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