Developers raise concerns over risk to offshore wind investment in Scotland

Scotland’s offshore wind sector faces growing uncertainty unless urgent reforms are made to the UK’s electricity network charging regime, one of the country’s largest developers has warned.

The concerns of Prosper member Ocean Winds come amid wider industry criticism that Transmission Network Use of System (TNUoS) charges are increasingly misaligned with the UK’s energy transition, placing a disproportionate burden on projects located furthest from centres of electricity demand.

Ocean Winds said the escalating cost and volatility of network charges were already undermining investor confidence in Scottish developments and skewing investment towards projects in England, at a critical moment for energy security, economic growth and decarbonisation.

Adam Morrison, UK country manager at Ocean Winds, said: “The magnitude and volatility of transmission charges are harming existing Scottish projects and actively undermining future investment that will be essential to delivering clean power and net zero. The current system was never designed for an energy mix dominated by renewables, yet it now sends a powerful signal not to invest in the very parts of the country with the greatest wind resource.”

Analysis by Simon Gill, of The Energy Landscape and commissioned by trade body Scottish Renewables, highlights how the charging regime – designed more than three decades ago for a fossil‑fuel‑led system – now penalises renewable generation in Scotland, despite the country’s strategic importance in meeting UK clean power targets.

The report shows that a one‑gigawatt offshore wind project in northern Scotland could face up to £1 billion more in lifetime transmission costs than an equivalent development in southern England. Charges for some Scottish generators are forecast to more than double by the end of the decade if no action is taken.

Ocean Winds warned this creates a perverse outcome in which Scottish renewable projects are effectively subsidising generation elsewhere in Great Britain. Higher network charges north of the border can push up the strike prices required by Scottish schemes in Contracts for Difference auctions, with those higher prices then paid across the market, benefiting projects in lower‑cost regions.

Scottish Renewables has called on energy regulator Ofgem to introduce interim reforms ahead of a wider overhaul of the charging framework, arguing that waiting until the end of the decade would come too late for many operational and planned projects.

Ocean Winds supports proposals that would allow developers to lock in predictable network charges at key stages of project development, providing greater certainty for investors and ensuring network costs are better aligned with the UK’s clean power objectives.

With pressure mounting to accelerate offshore wind deployment, the company said timely reform will be critical to maintaining momentum and securing Scotland’s position as a cornerstone of the UK’s energy future.