Contracts for Difference Allocation (Climate Targets)

Topical Question Time – in the Scottish Parliament at on 23 April 2024.

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Photo of Sarah Boyack Sarah Boyack Labour

To ask the Scottish Government what potential impact the proposed Berwick Bank offshore wind farm not being included in the contracts for difference allocation round 6 will have on achieving Scotland’s climate targets. (S6T-01932)

Photo of Richard Lochhead Richard Lochhead Scottish National Party

The Government’s commitment to ending Scotland’s contribution to global emissions as soon as possible remains unwavering, and Scotland is making progress towards our 2045 target, being about halfway to that goal already. A significant part of that success has been driven by our renewable energy industry. Scotland is becoming a renewables powerhouse, with 87.9 per cent of electricity generation coming from zero-carbon or low-carbon sources in 2022.

Scotland’s decarbonisation plans and green jobs potential will be further boosted by the six projects consented by the Scottish Government in time for the contracts for difference allocation round 6 application window.

Photo of Sarah Boyack Sarah Boyack Labour

The Berwick Bank offshore wind farm has the potential to create more than 4,500 jobs, from engineers and technicians to jobs at the beginning of the supply chain. What action is the Scottish Government taking to reduce consenting application timescales, and will the minister confirm when a consenting decision on Berwick Bank will be made?

Photo of Richard Lochhead Richard Lochhead Scottish National Party

We have a strong record of delivering robust consents and have, to date, consented all of the offshore wind applications that we have received. Although that does not mean that every future application will be successful, it demonstrates that consents are granted when it is possible to balance the environmental and development aspects.

The Berwick Bank application is a complex project, and any decision by the Scottish ministers must fully consider the positive contribution to reaching net zero targets alongside the possible impact on the natural environment and other users of the sea. The member is right to say that the project is of major significance for Scotland, and we will continue to work with the applicant and all those who have expressed a view.

Photo of Sarah Boyack Sarah Boyack Labour

I am disappointed that the minister did not acknowledge the importance of consenting timeframes. Last month, I visited Forth Ports, where considerable private investment is already being made to ensure that our renewables infrastructure is ready to go and to attract manufacturing to Scotland. That is a great example of businesses investing in Scotland, but they need signals and support from the Government if they are to have confidence in making that investment. The consenting of projects such as Berwick Bank is a signal that industry—particularly those in the supply chain—is keeping a close eye on. Will the minister say what is being done to reduce the timescales of consenting applications, given the concern in the sector that the energy strategy is being delayed?

Photo of Richard Lochhead Richard Lochhead Scottish National Party

We devote significant resources to ensuring that we deal with all applications, and the member mentioned another of the many exciting projects that are happening across the country at the moment.

None of us wants to be dragged through the courts because something was done inappropriately, certain views were not taken into account or legislation on the impact on habitats and the wider environment was not adhered to. Sarah Boyack will be aware that these are extremely important issues. We do not want to get this wrong. Every application has to be assessed properly, which is why a proper process is in place.

On signals to the industry, I said in my answer that six significant projects have just been given consent in the current application round, including two floating offshore wind projects, one of which—Green Volt—was warmly welcomed in north-east Scotland, with the developers estimating that it has a value of £3 billion. That is a major and internationally significant project that has received consent from the Scottish Government, and it is a very powerful signal that Scotland is sending out.

Photo of Audrey Nicoll Audrey Nicoll Scottish National Party

It is very welcome that a number of offshore renewables projects in Scotland are now secured by relevant consents and marine licences, including the Green Volt offshore wind project that the minister mentioned. Will the minister provide further information on what assessment the Scottish Government has made of the environmental and economic impacts that the projects are anticipated to have?

Photo of Richard Lochhead Richard Lochhead Scottish National Party

As I indicated to Sarah Boyack in my previous answer, the Scottish Government has a robust process for offshore renewable energy project consent applications, including for the Pentland and—as Audrey Nicoll referred to—Green Volt offshore wind farms. The process includes applicants undertaking environmental impact assessments, which assess significant impacts on the environment, and it includes the habitats regulations appraisal—HRA—which assesses impacts to protected sites.

Consultation is undertaken with a range of statutory and non-statutory consultees, including NatureScot, which is the statutory nature conservation body. In the case of Green Volt, a derogation case as part of the HRA was also undertaken to secure compensation for any adverse effects on protected sites.

Photo of Douglas Lumsden Douglas Lumsden Conservative

As we have heard, consent times are a huge issue for the project. It has been 17 months so far, with no decision. Does the Scottish Government have plans to streamline the necessary regulatory and administrative processes, to expedite the approval and implementation of offshore wind programmes such as Berwick Bank? If so, by when? I ask that communities are not sidelined by any changes that are brought forward, and I ask that balance is sought.

Photo of Richard Lochhead Richard Lochhead Scottish National Party

I agree with Douglas Lumsden that balance has to be sought. These are very big and complex applications in many cases, including the Berwick Bank application.

I note that other big applications have received consent, including the Green Volt application for an internationally significant floating offshore wind farm with a value of £3 billion, which Douglas Lumsden’s North East Scotland constituents have warmly welcomed over the past day or two. It is a significant project for that region of the country.

We always look for ways to ensure that the consents process is more efficient and properly resourced. However, as I said, the fact that six significant projects have just been given consent sends out a powerful signal that we are taking the matter as seriously as we can and that we will continue to support an efficient and effective consents process.

Photo of Willie Rennie Willie Rennie Liberal Democrat

The minister does not seem to be that bothered that the target consenting time of 12 months has been far exceeded and is up to 17 months. That will send quite a significant message to the industry, which is looking for confidence that the Government has the capacity to deal with that.

The ScotWind applications will be coming through soon, but we have not seen anything yet on the number of applications that will be forthcoming. One of the minister’s colleagues has told me that extra staff have been recruited, but it will clearly not be enough. How many extra staff will be recruited? Will the 12-month target date be met for the ScotWind applications?

Photo of Richard Lochhead Richard Lochhead Scottish National Party

Ministers are always looking at the level of resources that are applied to the consents process, because—of course—we recognise the national significance of the projects. As I said, some projects are far more complex than other projects. We are going as fast as we can with the process, but it has to be done properly and it has to be robust. We have to avoid a situation in which we end up with further years being lost as we go through court cases due to not getting it right.

We are going through a green revolution in Scotland, particularly in offshore renewables. There are many applications in the pipeline and many have been consented. It is a national effort and it is of national importance. Willie Rennie is right that we have to keep reviewing how we do this in order to improve things as we go forward. However, as I said, the fact that we have given consent to six major projects, which will deliver billions of pounds in value, as well as jobs the length and breadth of Scotland, is a good sign that we are taking the issue seriously.

Photo of Daniel Johnson Daniel Johnson Labour

In emphasising the six consented projects, the minister is emphasising outcomes. The issue here is about pace and throughput. Given that we need to double our offshore wind-generating capacity, is the minister confident that we can meet the doubling that we need to achieve by 2030?

Photo of Richard Lochhead Richard Lochhead Scottish National Party

We are making great progress, but the Scottish Government cannot predict how many objections or concerns will be expressed in relation to any one particular application. We have to wait and see how the process develops as it goes forward. We have to make sure that the process is robust, efficient and well resourced.

As I said before, a significant number of projects, some of which are complex, have been consented, and that will help us to achieve our net zero targets and deliver thousands of jobs for Scotland as well as, potentially, hundreds of millions—if not billions—of pounds in investment for the country.