Crown Estate Scotland has provided an update on plans to introduce local content requirements into the upcoming ScotWind Leasing process, which is set to launch later in 2020
Earlier this month it was announced that, as part of the ScotWind Leasing process, applicants will be required to submit a Supply Chain Development Statement, to help show how they plan to tap into the potential offered by Scottish suppliers.
“While this process will be set out at the launch in the ScotWind Leasing offer document, we want to give the offshore wind sector more clarity around what may be involved,” said Crown Estate Scotland. “As a result, we are outlining more details of how this mechanism is currently envisaged.”
Crown Estate Scotland will require ScotWind Leasing applicants to submit a Supply Chain Development Statement, outlining the anticipated level and location of supply chain impact from their proposed project, broken down by project stage (development and consenting, construction, operation and maintenance).
The statement will form part of the initial application for seabed rights and will be shared with public sector partners, including the Scottish Government and enterprise agencies.
The statement will require information on the geographical location of supply chain activity (Scotland, rest of UK, Europe). It will be for the applicant to determine the level and type of activity proposed in any particular region.
In support of the statement, applicants will be expected to present evidence-based information on how it can be fulfilled.
The presentation of a Supply Chain Development Statement will be required, but the information contained in it will not form part of any scoring relating to selection of winning applications.
For applicants who are then granted a ScotWind Leasing Agreement, the statement will be incorporated into that agreement and a process of regular reporting will be put in place.
Through the option period there will be an opportunity to update the statement, setting out the reasons for any changes. However, Crown Estate Scotland will not be required to accept an update if supporting information does not provide sufficient justification for any change.
Crown Estate Scotland went on to say it is “currently considering what potential consequences will be established for non-compliance with the terms laid out in an applicant’s statement, including the potential termination of option agreements.”
Crown Estate Scotland said it will publish a document which sets out further detail on the Supply Chain Development Statement and will identify points on which it would like to receive feedback from interested parties. “We will ensure this is done by the time ScotWind Leasing has been launched in Spring 2020. We will confirm the final supply chain arrangements in sufficient time for applicants to reflect these in the applications they submit,” it said.
The closing date for applications to ScotWind Leasing will be after the Sectoral Marine Plan for Commercial Scale Offshore Wind has been finalised and adopted. “When we have clarity on the date of the final adoption of that plan, we will confirm the closing date for applications and the final details of any other aspects of ScotWind Leasing, including the final Supply Chain Development Statement arrangements,” the seabed manager said.
“Of key importance to Crown Estate Scotland is that this process is carried out in a way which is clear, open and transparent. These measures, we believe, offer applicants the chance to help identify joint opportunities and develop supply chain networks, as well as providing a clear route to demonstrate their progress on the industry’s stated supply chain ambitions.”
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