Scottish ports are nearly ready to support the offshore wind industry but are delaying final investment in infrastructure due to market uncertainty, a leading port owner has claimed.
Charles Hammond, chief executive of Dundee and Leith owner Forth Ports, responded to criticisms made last week that ports in Scotland were not attractive to offshore wind developers due to a lack of specialist facilities.
Mr Hammond said Scottish ports were “ready” but the final push towards realising a successful supply chain relied on government commitment to buying electricity from offshore wind through the Electricity Market Reform (ERM) proposals.
Mr Hammond said: “Port infrastructure is generally there but the specialised stuff needs to be built. The specialised stuff won’t be built unless a manufacturer makes a commitment. They won’t make a commitment until they get an order book.
“The order book won’t be placed until the funding is in place, and the funding won’t be in place until the certainty of return in the market is there.”
In December the Department of Energy and Climate Change (DECC) delayed confirmation of guaranteed “strike prices” for three major windfarm projects offshore Scotland.
DECC judged 10 renewable energy projects as “provisionally affordable” under its new contracts for difference funding scheme but left projects at Beatrice, Inch Cape, and Neart na Gaoithe subject to a final decision later in the spring. Concerns about the fitness about port infrastructure in Scotland and the strength of the offshore wind industry in general emerged last week at the Offshore Wind and Supply Chain conference in Aberdeen.
Industry body Scottish Renewables warned that investment in the sector had collapsed by more than half last year to £30million, while speakers at the conference warned wind turbine operators were more likely to establish operations at ports on the continent.
Mr Hammond added that although offshore wind developers are looking to reduce costs, where they base their operations is only a small part of the funding mix.
He said: “Port costs in total for a manufacturer are about 1.5% of the sales price of a turbine. It is not the most critical thing.
“We are ready. Yes, people would love things to be built in advance but you build in response to market demand.
“We recognise renewables may take longer to come to market.
“My own view still remains once we get certainty in the framework of EMR and certainty of returns, everything will flow from that.”