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The Scottish Government has announced a £150 million investment in offshore wind development as part of its 2024 draft Budget, drawing mixed reactions from industry leaders in the North-east.
The Budget outlines plans to establish an Offshore Wind Hub in Aberdeen to streamline project development and foster collaboration within the renewable energy sector. Finance Secretary Shona Robison described the initiative as a cornerstone in Scotland's strategy to bolster its supply chain and accelerate the shift to clean energy.
Russell Borthwick, Chief Executive of Aberdeen & Grampian Chamber of Commerce, welcomed the move, calling it a "vote of confidence in this region." However, he stressed the need for more extensive funding and policy reforms, expressing disappointment over limited increases in the Just Transition Fund and the absence of tax incentives to attract skilled talent.
Maggie McGinlay, CEO of ETZ Ltd, praised the hub as a "crucial step" in cementing the North-east’s global renewable energy leader position. "Locating the hub in Aberdeen makes perfect sense given its proximity to key projects and energy supply chain companies," she said.
The Budget also includes increased funding for NHS services, affordable housing, and the arts. However, concerns persist over the lack of significant infrastructure upgrades and limited financial relief for the struggling hospitality sector.
Claire Mack, Chief Executive of Scottish Renewables, said: "At a time of constrained public finances, it is welcome that the Scottish Government has prioritised investment in renewable energy given it is our most significant opportunity for economic growth.
"In particular, we are pleased to see confirmation of the next tranche of funding previously committed to the offshore wind supply chain. It is also encouraging to see the revenues from ScotWind directly utilised for clean industrial growth alongside more resourcing into the planning system.”
Rod Hutchison, partner and energy sector lead at Aberdein Considine, said: “We also greatly welcome the announcement of plans to establish an offshore wind hub in the city.
“This showcases the government’s increasing confidence in the region, following on from the recent decision to base GB Energy in Aberdeen.
“This new hub will support agencies and industry bodies to streamline what is quite often a complex planning system for offshore renewables projects, ultimately speeding up their deployment.
“At a time when net-zero deadlines are looming, it is heartening to see positive action being taken that will support us in meeting these ambitious targets.”
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