It has been widely reported that in the near future, and possibly even this winter, the UK faces the possibility of blackouts due to electricity shortages.
Consequently, the need for ensuring that the UK possesses a strong balanced portfolio of electricity production facilities has never been greater. Being an island nation, offshore wind power generation is a vital component of this power base as it not only complements traditional generation methods but does so in a renewable and as such in a more sustainable way. As Scotland has a surplus of electricity supply, most of these potential blackouts will be in England.
Thus, it is all the more puzzling that Westminster which, at present, holds the decision-making power, has failed lamentably to ensure that offshore wind generation is adequately supported. This short-sighted approach has seen many offshore wind projects being mouth-balled or cancelled altogether in Scottish waters in the past couple of years. The latest casualty of this failure of UK policy is the French behemoth Technip which have announced a withdrawal from offshore wind-power production in Scotland with a possible loss of 190 jobs. For Westminster to be seen to be responsible for causing job losses in Scotland just prior to the referendum on independence beggars belief, and yet again is another harrowing example of its failed energy policy. This loss to Scotland and the UK is all the more regrettable and acute as Technip staff possess significant expertise and specialist skills that are in great demand worldwide.
There are many reasons why Westminster is failing national energy security and in this case specifically the offshore wind sector. The Conservative Party’s ideological preference for expensive nuclear power, has led to uncertainty in the wind sector, both onshore and offshore. In addition, the Coalition Government’s flagship initiative – Electricity Market Reform (EMR) – is in a state of disarray and has led to a hiatus in offshore wind investment. Perhaps sanity will return to those participating in the Better Together Campaign (including the Office for Budget Responsibility and the Department of Energy and Climate Change (DECC)) and that further damage will be avoided by not talking down Scotland’s thriving oil and gas industry, and renewables sector.
In our view an increased voice for Scotland on its energy policy – regardless of the outcomes of the forthcoming referendum – may not come a moment too soon for national energy security, and the offshore wind sector.
Peter Strachan is a Professor of Energy and Policy and Alex Russell is a Professor of Petroleum Accounting at Robert Gordon University.
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