Scottish Power says more onshore windfarms would deliver £1.6 billion benefit to consumers and create 10,000 new Scottish energy jobs

Building an extra five gigawatts of onshore windfarms over the next five years  – mostly in Scotland – would save UK consumers £1.6 billion over 15 years.

And the wind-ustry report commissioned by Scottish Power, among others, also forecasts that by far the major of new wind-power energy projects (86%) will be built in Scotland – thereby creating some 10,800 new jobs in Scottish energy

The new report from renewable energy consultants BVG Associates demonstrated that awarding contracts for 5 gigawatts (GW) of new onshore wind power between 2019 and 2025 could deliver a net payback to UK consumers of £1.6 billion.

Their analysis considers five new Contract for Difference (CfD) auctions held from 2019 and at 18 month intervals thereafter.  Each has a maximum capacity of 1GW. 

Forecasts show that the costs of new onshore wind projects will drop beneath the Government’s forecast wholesale electricity price from 2023, delivering a net benefit for UK electricity consumers. 

Over the five auctions it is expected that 86% of the projects by capacity will be built in Scotland and 12% in Wales. Less than 2% will be built in England made up of small scale projects (sub 50MW) of a type typically developed by communities.

Net payback to consumers from the five CfD auctions
Net payback to consumers from the five CfD auctions

Around 18,000 skilled jobs will be supported during the peak years of construction, with 8,500 people employed in long-term skilled jobs when all the wind farms are operating.

A clear commitment to five auctions would stimulate supply chain investment, increasing the already high proportion of UK content in projects to almost 70%.  The biggest opportunities are in fabricating towers and blades, part refurbishment and the development of UK installation teams.

It is anticipated that 60% of the jobs will be created in Scotland, 17% in Wales and 23% in England (where most UK corporate head offices are located).

A Scottish Power spokesman commented: “Onshore wind is the cheapest form of new build electricity generation available in the UK today, and statistics show that it is supported by over three-quarters of the British public.

“The Government can benefit from cheap, green and clean energy to deliver the Industrial Strategy and Clean Growth Plan by supporting onshore wind as well.”

A number of major Scandinavian wind power developers also contributed to commissioning the expert report.

12 Jun 2018

Pixie Energy

Pixie logo Pixie Energy is an incubator and a facilitator of strategic research and project work, focusing on energy regulation, policy and markets at the local and national level. Find out more about Pixie Energy here.

Local Energy Matters: Scotland

Local Energy Matters: Scotland is a free-to-download brochure with a focus on energy tariffs in the two Scottish electricity distribution regions, as well news on local energy and low-carbon schemes.

Previous editions can be download here.

Scottish energy market overview

You can read an overview of the Scottish energy market here.

Scottish Government energy feed