Commons Sense

House of Commons · Westminster Hall

Offshore Wind: Public Ownership

12 September 2023 · 2 other contributors · 4,528 words

Opened by Kenny MacAskill Alba East Lothian

Responding minister: Graham Stuart

ClimateScotlandEnergy

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Kenny MacAskill raised concerns about offshore wind: public ownership in Westminster Hall. A government minister responded.

Key points

  • Mr Kenny MacAskill expresses concern that Scotland's offshore wind resources are being exploited by foreign state-owned companies, leading to a loss of potential profits for Scotland.
  • Mr MacAskill notes that other nations, such as Denmark, take a 20% stake in offshore wind developments, in contrast to the UK Government's opposition to public ownership initiatives.
  • Mr MacAskill asks the Minister to confirm that the government will neither oppose a state energy company nor prevent Scotland from taking a share of its natural wealth.

Key requests to Government

Mr MacAskill asks the Minister to confirm that his government will neither oppose a state energy company nor prevent Scotland from taking a share of its natural wealth. He demands an end to the current situation where Scotland is described as 'energy-rich' yet experiencing fuel poverty among its citizens.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Kenny MacAskill Alba East Lothian

Mr Kenny MacAskill is concerned that Scotland's offshore wind resources are being exploited by foreign state-owned companies, leading to a loss of potential profits and benefits for the Scottish people. He cites examples such as Neart na Gaoithe, operated by EDF Energy from France and Electricity Supply Board (ESB) from Ireland, where wealth generated is benefiting Paris and Dublin rather than Scotland or the UK. Additionally, he highlights that while other nations like Denmark take a 20% stake in offshore wind developments, the UK Government remains opposed to such public ownership initiatives.

Other contributors (2)
  • Beth Winter

    Last week's announcement of no bids for new offshore wind development demonstrated that the Government is behind schedule for reaching 50 GW of offshore wind power generation by 2023, resulting in delays for projects such as the Erebus wind farm in Wales.

  • Jim Shannon DUP Strangford

    The private sector will invest £60.8 billion across the UK over the next five years in offshore wind projects, ensuring benefits for all devolved nations and job creation.

Government Response

Graham Stuart

It is a pleasure to serve under the chairmanship of Mr Dowd, and I congratulate Kenny MacAskill on securing this debate. The Minister acknowledges the importance of offshore wind for economic growth across the UK but argues against state ownership, citing the success of the Contracts for Difference (CfD) framework in reducing costs by 70% over recent years. He states that the UK market is open to investment from both state and privately owned developers, driving significant decarbonisation with nearly 48% of electricity coming from renewables this year, compared to only 6.7% when Labour left power. The Minister highlights Scotland's contribution, noting 3 GW operational or under construction, with more than 40 GW in the pipeline. He mentions a potential £200 million investment by Sumitomo in high-voltage direct current manufacturing and supports the growth of the offshore wind industry, which has created jobs and revitalised ports from Wick to Dundee. The UK leads in floating offshore wind technology with the world's largest operational capacity at 80 MW and a pipeline of around 25 GW identified through ScotWind leasing rounds. The Government are focused on building a robust supply chain and have invested over £500 million in manufacturing facilities, creating or safeguarding up to 1,200 jobs. They will provide up to £160 million for floating offshore wind manufacturing investment. The Minister also addresses community benefits, noting the cross-subsidy scheme providing more than £100 million annually to protect electricity consumers in the north of Scotland. He concludes by highlighting the success of AR5 and reflects on the results to make appropriate adjustments for AR6, aiming to achieve 50 GW of offshore wind capacity by 2030.

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