Offshore Wind Focus

Our assessment of priority areas for public investment and support

We have developed our approach in close collaboration with our partners - the Scottish National Investment Bank, Scotland's Enterprise Agencies, Crown Estate Scotland and the Scottish Futures Trust. The approach is underpinned by a strategic assessment of market opportunities which considered how to maximise the combined impact of a programme of public sector investments to realise offshore renewables supply chain opportunities in Scotland at scale and at pace.

A strategic assessment of current market opportunities was conducted in early 2024 by the Scottish Government and public sector partners. The assessment identified potential early mover projects and key areas for public sector funding support, drawing from a wide range of evidence and industry reports, sector expertise across public sector organisations, and wider market intelligence including from the industry-led Strategic Investment Model, which aims to unlock infrastructure investment into offshore wind ports and harbours, critical infrastructure and supply chains.

The assessment of the pipeline of prospective projects being considered under this strategic approach to investment has indicated projects are likely to have high Benefit Cost Ratios (BCRs): the BCRs signal a range of between 3:1 and 13.5:1^[6]. Even at the lowest end of this range, this is an excellent return on public sector investment underlining the value of this strategic investment to Scotland.

Our commitment to invest up to £500m over five years is also expected to leverage significant private capital which will be vital to deliver the ports upgrades and supply chain facilities that offshore wind projects need. Based on our assessment of the current pipeline of potential projects, we can expect a multiplier effect of an average of 3 times the original public investment. Where this public investment is delivered by the Scottish National Investment Bank via commercial debt and equity funding, we can expect positive returns on those investments.

The assessment identified the key strategic opportunities across two tiers: (i) ports & harbours infrastructure and (ii) the wider offshore wind supply chain, as set out in the following diagram.