SCOTTISH RENEWABLES OFFSHORE WIND INVESTING IN SCOTLAND

OFFSHORE POLICY

OFFSHORE WIND INVESTING IN SCOTLAND2012 represented a hugely significant year for Scotland’s offshore wind industry. Projects with the potential to generate over 4GW of electricity entered the planning system, marking a significant milestone and putting the industry on track to make a vital contribution to Scotland’s 2020 renewable energy and climate change targets.

Scotland’s offshore wind resource is huge - 25%

of the entire European resource. The energy

represented by these initial applications alone

could be enough to power over three million homes.

Harnessing this potential will not only generate

a secure source of clean, green electricity, but it

also represents a massive economic opportunity

for Scotland not seen since the oil and gas boom of

the 1970s.

The commitment to the success of this industry in

Scotland is clear when looking at the significant

investment made by offshore wind developers in the

Scottish economy today. In January 2013 Scottish

Renewables surveyed members involved in the

development of offshore wind farms in Scottish

waters, to establish how much they have invested

in Scotland to date. The research shows that £164.5

million has been invested in the Scottish economy

by the six companies currently developing offshore

wind projects in the Scottish Renewable Energy

Zone with more than one third of this investment

(£63.66 million) delivered in 2012.

This investment figure represents the growing

level of confidence and commitment global

energy companies have in the opportunity

presented by the Scottish offshore wind sector. It

can be attributed across a wide range of project

development activities, from the value of contracts

awarded in the preparation of Environmental

Impact Assessments to establishing new project

development teams across Scotland. Made in

advance of consents being awarded, this investment

is also just a fraction of the full economic

opportunity that can be captured once these project

applications have been determined and we move

forward to begin construction and operation.

THE RESEARCH SHOWS THAT £164.5 MILLION HAS BEEN INVESTED IN THE SCOTTISH ECONOMY

SCOTTISH RENEWABLES OFFSHORE WIND INVESTING IN SCOTLAND

OFFSHORE POLICY

The continued growth of investment will be aided

by the recent launch of the Green Investment Bank

in Edinburgh. Capitalised with £3 billion (although

not specific to offshore wind) the bank will work to

stimulate the deployment of private sector capital

and debt into the industry, largely to accelerate

investment during the deployment and construction

phases of projects. However, continuing growth will

not be without its challenges – Electricity Market

Reform, access to the grid, and the predictability

of the planning system are just a few of the issues

that can heighten the profile of risk for potential

investors and jeopardise the future development of

the industry.

Despite this, the level of investment committed by

developers in Scotland to date is already helping

to generate huge interest in companies involved

in the offshore wind supply chain. Decades of

offshore engineering experience and a highly

skilled workforce combine to make Scotland one

of the most attractive countries for renewables

investment and supply chain development in the

world. The recently published intended investment

map from Scottish Enterprise and Highlands and

Islands Enterprise shows a clear appetite for

investment from major international companies

such as Mitsubishi, Technip and Samsung, to

home-grown businesses including NGenTec,

Wind Towers and BiFab. These companies are

all readying themselves for this next chapter of

renewable energy development, which has the

potential to deliver economic benefit in every corner

of the country.

Looking forward to 2013, we will continue to work

with Government and stakeholders to ensure

that we develop Scotland’s supportive business

environment, encouraging sustainable investment

while addressing any barriers to supply chain

development. With the significant investment

from developers of £165 million to date, and the

huge interest in supply chain development, which

this investment has helped generate, Scotland’s

offshore wind sector starts 2013 from a very strong

and incredibly exciting position.

SCOTLAND’S OFFSHORE WIND SECTOR STARTS 2013 FROM A VERY STRONG AND INCREDIBLY EXCITING POSITION

SCOTTISH RENEWABLES OFFSHORE WIND INVESTING IN SCOTLAND

OFFSHORE POLICY

#*

#*

#*

#*

#*

#*

#*

#* #*#*

#*!(

!(!(!(

!( !(!(

!(!(

!(!(!(!(

!(

!( !(

!(

!(

!(

!(

!(!(

!(

!(

A96

A90

A9

A82

A82

A83

M74

A77A7

A68

M6

A69

A9

A835

A87

A830

A85

A82

A836A838

A836

A837

Stornoway

Thurso

Wick

Oban

Glasgow

M90

Inverness

© Crown Copyright and database right 2013. All rights reserved. Ordnance Survey Licence number 100018398. ±

EDPRJobs: 10 (Mar 2010)

NGenTecJobs: 20Investment £2 millionDecember 2010

RePowerJobs: 26 December 2010

VattenfallJobs :122009

Source: Scottish Enterprise GIS TeamContact: kmap@scotent.co.ukDate: 18/01/2013

Subsea 7Establishment renewable energy divisionJobs: 10 + January 2011

TechnipEstablishment European HQ in Aberdeen£10 million investment for SubOceanJobs: 300 January 2011

Repsol/SeaEnergy Renewables Ltd£40M acquisition of SERLJune 2011

BiFab£11 million investment SSEJobs: 155April 2010

A9

Machrihanish

Methil

Edinburgh

Dundee

Fort William

Aberdeen

ArnishInvestment: £3mFabrication facilities upgrade for BiFabNovember 2011

Scrabster HarbourInvestment: £20mMultipurpose pier for renewablesApril 2011

GamesaJobs: 180 R & DJuly 2011

Scottish and Southern EnergyMoray Firth NodeInvestment: € 73m - EU Grant

Repsol Nuevas EnergiasJobs: 20 January 2012

Examples of Recent Announcements of Intended Investments in Offshore Wind

Scottish Enterprise, HIE & SDIJanuary 2013

Mitsubishi Heavy IndustriesInvestment: Up to £100 millionCentre for Advanced TechnologyJobs: 30 EngineeringDecember 2010

MoU SE and 2B re offshore T and D facilitiesApril 2012

IberdrolaJobs: 200 March 2010

Nigg Skills Academy290 Modern Apprenticeships 20123000 training places by 2015March 2012

Global Energy Nigg (GEN) Global Energy Group buys Nigg Yard to develop service hub for energy industry.800 renewables jobs forecast by 2015.October 2011Mitsui purchase 25% stake in Global Energy GroupApril 2012

Oceaneering£15.2m investment June 2012

European Offshore Wind Deployment Centre40 million euros EU fundingDecember 2010

EnerconJobs: 13June 2012

Wind Towers LtdJobs: 80Investment: £9.3 millionMay 2011

Strathclyde University TICITREZInvestment: £89M700 new jobs and £100m of GVA September 2011

Scottish Power and SSEJobs: 3,000 jobs across Scotland over 10 yearsSP creating 300 jobs in 2012February 2012Investment: £7 billionUpgrade of Grid for Renewables

Offshore Renewable Energy CatapultITREZInvestment: £50MFebruary 2012

SSE (CEERE)Jobs: 250October 2009

Steel EngineeringInvestment £2.6 millionJobs: 120 March 2011

The Renewable Energy Steel Trades Academy (TRESTA)60 Apprentices per annumAugust 2012

Hunterston Offshore Wind Turbine Testing FacilitySSE and SEInvestment: £20M October 2012

MoU between Forth Ports, SSE, SE, Dundee City CouncilJobs 700 December 2011

David Brown Gearbox SystemsFife Energy ParkGearbox plant; Jobs/ Investment tbc January 2012

Samsung Heavy IndustriesFife Energy ParkUp to £100M investment500 jobs January 2012

Gamesa (Leith)Wind turbine manufacturing facilityInvestment: 150M eurosJobs: 800 March 2012

Areva [Location to be specified]750 jobs in Scotland from manufacturing and the supporting supply chain. November 2012

Crown Estate - Scottish Territorial Waters & Round 3 Zones© Crown Copyright 25/01/2010. Reproduction in whole or part is not permitted without prior consent of The Crown Estate.

Where available, entries include the estimated investment value and/or potential job numbers

Legend

!( Renewable Investment Announcements

#* NRIP Sites

Crown Estate - Scottish Territorial WatersCrown Estate - Round 3 Zones