Future UK Government budgets for offshore wind are unlikely to support Scotland’s ambitions to develop the industry, the first minister has said.
Nicola Sturgeon has called on the Government to act to provide confidence to the sector by increasing budget allocations to allow offshore wind to be delivered on a far greater scale.
Ms Sturgeon’s plea comes after the results of the first Contracts for Difference auction were announced last week.
The auction awarded 15-year contracts that guarantee a price for the power generated as part of the Government’s plan to encourage renewable energy.
Offshore wind projects competed for a share of £260 million £155m for projects commissioning from 2016/17 and an extra £105m for schemes commissioning from 2017/18 onwards.
Only one Scottish offshore windfarm received a contract, while two major offshore windfarms were refused, leaving uncertainty over their development, Ms Sturgeon said.
She argued that Scottish wind power is now “substantially cheaper than nuclear” and said onshore wind development shows that long-term investment on a large-scale leads to substantial cost reductions.