Scotland’s Deputy First Minister calls for reform of CfDs, action on grid queue

Speaking at the Scottish Renewables Offshore Wind Conference in Glasgow on 22 January 2025, the Minister also called for action on the grid, and for reform of the connections queue process. She said that without action, Scottish offshore wind projects risk falling behind with investment in Scotland, which is beginning to show real results, adversely affected.

Noting that responsibility for strategic network planning, electricity network connections and CfD rests with the UK government, the Minister said, “For Scottish projects to connect to the grid at the right time, with certainty to secure investment and drive growth, those with the power to do so must take decisive steps. Otherwise there is a risk that we are left behind and we need to ensure those projects help us move beyond the current economic paradigm.

“Because you tell me – and I hear you loud and clear – that those barriers are slowing deployment and hindering the major infrastructure projects. The very ones that drive the growth that I celebrate.”

She continued, “So the UK government, Ofgem and the National Energy System Operator need to bring forward crucial reforms to cut connection times for projects which are needed to meet net zero, which will secure project deliverability and increase investor confidence. This will also mean looking beyond 2030 to projects coming slightly further down the line.”

The Minister also told delegates at the conference that the UK government “needs to ensure sufficient budget, maximum support and greater long-term certainty for Scottish projects in Allocation Round 7 (AR7) and future CfD rounds,” in order to deliver Scottish projects at scale.

“And it is essential that reforms to CfD support the advancement of floating wind projects, recognising their potential to drive innovation and economic benefits,” the Minister said, noting that the Scottish government “engages and collaborates openly with the UK government on those points.”

The Minister said offshore wind represents a once-in-a-generation opportunity to transform Scotland’s economy and create jobs, drive the growth, support innovation, diversify industries, and generate wealth. “It’s about creating good quality, diverse jobs for those entering the job market for the first time and those who want or need to change careers as part of a just transition,” she said.

“To realise that collective action needs to be taken in the short, medium and longer term so we have the right people with the rights skills in the right place at the right time.

“We are seeing major manufacturing for offshore wind projects happening on Scottish soil, signalling the beginning of a new era, where we lead both in generating energy but also producing the components that make it possible. That’s when it starts to make sense for everyone, for the developers, our workforce, for the economy and communities. The pieces needed to build offshore windfarms are being made here in Scotland.”