Desktop study to understand the potential options available to offshore wind developers upon expiry of any subsidy regime

Descriptions

The Energy & Infrastructure division of Crown Estate Scotland is responsible for managing the seabed on behalf of the Scottish people relating to areas such as offshore wind, wave & tidal energy, cables (electrical and telecommunications) & pipelines (oil & gas), and Carbon Capture & Storage (CCS). Confidence in the sector was boosted by the recent ScotWind leasing round which saw Crown Estate Scotland secure 17 potential new offshore wind projects, totalling just under 25GW of potential new capacity. To fully understand the potential value and duration of both current and future Scottish offshore wind assets, we must investigate the impact of the expiry of any subsidy regime, including for instance Contracts for Difference (CfD’s). The current estimated operational life of offshore wind turbines is 25 years, expected to reach 30 years within the next decade. On the basis that a subsidy is granted to the developer for a set period (for CfD’s this period is 15 years) we are seeking to understand the potential options available to the developer at this critical point in the asset’s life as well as how this may impact the sector and future mechanisms for supporting low-carbon electricity generation. As part of considering options for support mechanisms and ongoing investment in operational assets, the study will investigate operational models that may be suited to future support mechanisms and investment opportunities. The scope of the project is detailed in the ITT and includes the required outputs. The project is anticipated to be around 12 weeks with all outputs delivered by end January 2023. It should be noted that information/analysis from both the report and the model could form the basis for future discussions Crown Estate Scotland may have with policy makers in relation to support for offshore wind ongoing operation.