Scotland‘s offshore wind sector has seen impressive growth over the past decade, with projects positioning the country as a global leader. However, the main challenge is not energy generation but distribution: the grid infrastructure is insufficient to handle the wind power produced and transmit it to demand centres in England and Europe.

In a conversation with Strategic Energy Europe, John MacAskill, Group Growth Director at ABL Group and Director at OWC, highlighted the severity of the problem: “Fundamentally, we generate more renewables than Scotland can consume. Much of what we produce needs to be exported, but the grid is not ready for that.”

The issue has reached a critical scale. It is estimated that in 2025, the UK will pay nearly 2 billion pounds in constraint payments to wind farms due to grid limitations. The pivotal issue, however, is the lack of capacity that is delaying or even paralysing the development of new offshore wind farms. “Some projects won’t be able to connect until the late 2030s. For a developer, that makes investment unfeasible,” MacAskill explained in his discussion with Strategic Energy Europe.

An Outdated Grid Connection System

One of the factors exacerbating the crisis is the current lengthy grid connection queue system. The current ‘first come, first served’ model is not fit for purpose. You can obtain a connection date regardless of the development readiness, so in some cases delaying the progress of more advanced projects that may have applied for a connection later, means  “It’s an inefficient model. We currently have ‘zombie connection dates’ that could go to projects that have a higher state of readiness. We need a more flexible system that prioritises viable projects, NESO (National Energy System Operator) is now implementing a reform to move to a ‘first ready and needed, first connected’ model,” MacAskill stated in his interview with Strategic Energy Europe.

The UK government has begun taking steps to also accelerate grid expansion. Among the key projects are the Eastern Link and Green Link, two high-voltage interconnectors that will facilitate the export of Scottish wind power to England. Additional interconnections with Norway have also been approved, allowing for a more efficient exchange of renewable energy.

A Slow Permitting Process: Scotland Lags Behind Europe

Grid access is not the only obstacle. Scotland has one of the slowest permitting processes in Europe, further delaying the completion of projects. “While Denmark has a single regulatory body, Scotland has two main bodies, slowing everything down, it is even longer than England & Wales due to differences in regulatory frameworks and additional procedural complexities. Permits can take up to seven years to secure,” MacAskill explained in his discussion with Strategic Energy Europe.

These delays put the UK’s decarbonisation targets at risk. While the government has set a goal of 60 GW of offshore wind capacity by 2030, only 14 GW are currently operational, with many projects stuck in regulatory limbo.

Floating Wind: A Future with Challenges to Overcome

Scotland is a leader in floating wind technology, with pioneering projects such as Hywind Scotland and Kincardine. However, the sector faces major hurdles. “To scale this technology cost-effectively, we need industrialisation. We can’t build these structures as if they were individual prototypes but also at the moment we cannot construct GW-scale projects. Ideally, we need ‘stepping stone’ projects, to learn and de-risk GW scale floating construction and to make ready the necessary supply chains,” MacAskill pointed out during his interview with Strategic Energy Europe.

One key factor will be the development of suitable port infrastructure to assemble and deploy floating wind turbines on a large scale. Currently, much of the manufacturing and assembly would be done in Spain, Dubai, or China, increasing the carbon cost and reducing local economic benefits.

Strengthening the Local Supply Chain

A critical issue is ensuring that offshore wind investments benefit the Scottish and UK industry, rather than relying entirely on imports.

“We have made progress in local content, but have hit a plateau to be honest, so much more needs to be done. For starters, you can’t buy local content if the capacity to manufacture it doesn’t exist,” MacAskill said in his discussion with Strategic Energy Europe. A clear example is the production of high-voltage cables, a crucial component for transmitting electricity. “Today, cable demand exceeds European manufacturing capacity by 2.5 times. Scotland has enormous opportunities if it develops local cable factories.”

Another sector with potential is ports and maritime logistics. Scotland will need specialised port infrastructure for the assembly and maintenance of wind turbines, as well as a fleet of service vessels. “The UK’s offshore and maritime sector already has experience in the North Sea oil and gas industry. Now, it needs to adapt to offshore wind,” MacAskill explained in his discussion with Strategic Energy Europe.

What’s Next for Offshore Wind in Scotland?

Despite these challenges, MacAskill remains optimistic about the sector’s future: “In 10 years, we could have a much more developed supply chain, with local manufacturing of key components and a more effective grid,” he stated in his interview with Strategic Energy Europe.

However, he warns that the government must accelerate reforms to ensure offshore wind investments are not stalled. “We cannot afford to wait until 2035 to resolve these issues. We need a modern grid, faster permitting, and a strengthened supply chain. Otherwise, Scotland will lose a historic opportunity,” MacAskill concluded.