UK energy secretary Ed Miliband is set to visit Aberdeen on Thursday, promoting billions of potential funding and policy measures to support Scotland’s energy sector.
The UK and Scottish governments will also sign an agreement later on Thursday, focused on partnerships with Scottish public bodies in the clean energy sector.
The Department for Energy Security and Net Zero (DESNZ) said through partnerships with Crown Estate Scotland, enterprise agencies and the Scottish National Investment Bank, GB Energy “can deliver quickly and effectively, avoid duplication, and deliver maximum impact and value for money from Scottish projects”.
It follows a separate partnership between GB Energy and the Crown Estate, which the government said could leverage £60 billion of private investment.
The Labour government has also pledged to boost the borrowing powers of the Crown Estate, which could enable it to allocate up to £400m for offshore wind projects.
Meanwhile, Miliband is expected to discuss the delivery of an ‘energy skills passport‘ to allow offshore workers to more easily move between oil and gas and renewables jobs.
A digital tool for workers is set to be piloted by January 2025, DESNZ said.
GB Energy and Crown Estate Scotland
Meanwhile, GB Energy chair Juergen Maier will join Miliband for his first visit to the Granite City since it was announced as the headquarters for the state-owned company.
With an initial £8.3bn of funding allocated to GB Energy over the next parliament, with floating wind set to form a key focus for investment.
DESNZ said “work is underway” with the Scottish energy sector to “use this for public investment to create new private sector jobs and drive projects in Scotland”.
Maier said by working with the Scottish government and public bodies, GB Energy “can help drive forward investment and create jobs”.
© Kenny Elrick/DC Thomson“The clean energy transition is a huge opportunity for Scotland, which is already at the cutting edge of technology like floating offshore wind, and Great British Energy is well positioned to help accelerate the development of key supply chains and infrastructure,” he said.
Crown Estate Scotland chief executive Ronan O’Hara said the organisation is “uniquely positioned” to be at the heart of the government’s clean energy mission.
“We recognise that this is a once-in-a-generation opportunity for the UK in general and Scotland in particular to develop a sustainable, long-term energy future,” O’Hara said.
Labour touts collaborative approach
Ahead of the visit, Miliband contrasted the Labour government’s approach to that of its Conservative predecessors.
“Scottish energy workers will power the United Kingdom’s clean energy future- including in carbon capture and storage, in hydrogen, in wind, and with oil and gas for decades to come as part of a fair transition in the North Sea,” he said.
© Supplied by Ocean Winds“Unlike in the past we’re also working closely with the Scottish government with a new agreement to ensure our publicly owned company Great British Energy is primed to accelerate clean energy investment in Scotland.”
Scotland’s acting cabinet secretary for net zero and energy Gillian Martin welcomed the collaborative agreement with Scottish public bodies.
“Scotland already has a strong pipeline of clean energy and supply chain opportunities, is at the forefront of floating offshore wind development, and has a depth of knowledge and experience on community and local energy,” Martin said.
Offshore skills passport
Confirmation of a passport that aligns standards, recognises transferable skills and qualifications between the oil and gas sector and renewables and which maps out career pathways will be welcome following long delays.
A prototype was unveiled earlier this year after years of development, launched in 2022 when the the Scottish Government awarded skills body Opito £5 million from the Just Transition Fund to realise the plan.
Secretary of State for Scotland Ian Murray said the UK government has set out to “reset the relationship” with the Scottish government to support the offshore workforce.
“This is an area the UK government and Scottish government can and should work in partnership to deliver for Scotland and harness the potential we have to truly lead the world in renewables jobs,” Murray said.
© Shutterstock / snapinadil“It should be easier to switch between oil and gas and renewables work offshore. The present situation, where training in one industry isn’t recognised in the other, cuts off opportunities for oil and gas workers.
“The fact some workers are paying out of their own pockets is scandalous.”
Murray said governments “need to cut that red tape” and deliver a skills passport allowing offshore workers “to move flexibly back and forth” between industries.
Industry reaction
Industry groups RenewableUK, Scottish Renewables and Offshore Energies UK (OEUK) welcomed the focus on skills transferability for the offshore workforce.
RenewableUK executive director of offshore wind Jane Cooper said the energy skills passport is a “great example of what we can achieve together”.
“The upsurge in offshore wind jobs over the course of this decade and beyond creates excellent opportunities for highly-skilled oil and gas workers to bring their valuable experience to the clean energy sector,” Cooper said.
© Image: GettyImagesScottish Renewables head of energy transition and supply chain Emma Harrick said it is “vital” to support Scottish suppliers to “grasp the green opportunities of the future”.
“The continued growth of our offshore wind sector and its supply chain will be particularly important in securing a successful just transition for our offshore workforce,” Harrick said.
“Central to that effort will be the Skills Passport which will establish the smooth pathways we want to create for clean energy careers.”
Meanwhile, OEUK chief executive David Whitehouse said the package of government announcements contains “significant measures” for the UK energy sector.
“The skills passport is an important part of the toolkit industry is assembling in recognition of the integrated nature of the energy landscape,” Whitehouse said.
“Those working in our domestic oil and gas sector have powered the country for the last fifty years and will play a critical role in our energy future.”
‘Positive first step’, union says
Commenting on the investment and skills boost, Unite general secretary Sharon Graham said: “This is a positive first step. However, the announcement today in no way offsets the impending jobs disaster that workers in Grangemouth are facing.
“It is essential that this month’s budget immediately unlocks real investment in renewable energy in Scotland. With a viable future for Grangemouth workers being the first priority and a workers’ transition for North sea workers following swiftly after.”
Unite Scotland secretary Derek Thompson added: “The development of a skills passport for North Sea workers is important and long overdue.
“However a skills passport is not sufficient on its own it must be backed up by sufficient well paid, skilled jobs in the renewable sector for all workers who wish to transfer to the sector.”
Budget concerns
Miliband’s visit to Aberdeen comes ahead of the Labour government’s much awaited Autumn Budget on 30 October.
The UK oil and gas sector has raised significant concerns over the budget after Chancellor Rachel Reeves confirmed plans to increase the tax rate of the Energy Profits Levy (EPL) and remove “unjustifiably generous” investment allowances.
© ShutterstockThe government also announced it would extend the EPL for an extra year to 2030.
The move prompted a strong reaction from the North Sea firms and industry leaders, who said the policy changes would “hasten the demise” of the UK offshore sector.
A recent survey showed confidence among North Sea oil and gas operators and the wider supply chain has hit a new low, largely due to concerns over the EPL.
Speaking to Energy Voice in August, UK Treasury minister James Murray said the government is committed to working with the oil and gas sector over the fiscal regime.
Meanwhile, energy minister Michael Shanks urged North Sea investors to “look beyond” the windfall tax and focus on the government’s clean energy commitments.
But with funds raised from the EPL in decline, North Sea analysts are hoping the Chancellor will outline a path towards a successor to the windfall tax in two weeks.
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