Question reference: S6W-08809
- Asked by: Michael Marra, MSP for North East Scotland, Scottish Labour
- Date lodged: 30 May 2022
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Current status: Answered by Michael Matheson on 9 June 2022
Question
To ask the Scottish Government for what reason no maximum bidding price has been stipulated within the awards process for floating offshore wind projects looking to progress through the Innovation and Targeted Oil and Gas (INTOG) process, in light of a maximum bidding price being stipulated in the commercial-scale ScotWind leasing round.
Answer
It is for Crown Estate Scotland, As managers of Crown assets in Scotland, to set seabed leasing fees.
The INTOG leasing round, due to be launched summer 2022, is a ‘first of its kind’ and there is no direct precedent to consider when finalising the design of the leasing arrangements. The objectives for INTOG (stimulating innovation and decarbonising oil & gas) are different from those of other offshore leasing rounds and as a result some key features of INTOG, including pricing, are also different.
Due to the specific nature of the projects, the novel commercial models, and the potential risks relating to such a new type of project, Crown Estate Scotland want to give the opportunity for the market to set the appropriate price given that this is a new and untested landscape.
The ScotWind price cap was designed to ensure that projects competing for limited Plan Options were viable in the long-term, would maximise supply chain opportunities and incentivise floating wind projects, that are ideal for Scotland's deeper waters but comparatively more expensive.