Offshore wind - strategic compensation policy: business and regulatory impact assessment
Partial business and regulatory impact assessment (BRIA) for the strategic compensation policy for offshore wind assesses potential impacts of the proposed policy to businesses and regulatory frameworks.
Introduction
The Scottish Government has developed a new policy for Strategic Compensation for Offshore Wind. The policy has been developed in accordance with Part 13 Chapter 1 of the UK Energy Act 2023, and which provides for reform to the Habitats Regulations[1] as they apply to relevant offshore wind activities (as defined in the Energy Act 2023). These reforms are critical to delivering Scotland’s offshore wind ambitions and to contributing to delivery of the UK Government’s Clean Power 2030 Action Plan (CP2030).
A collaborative approach between the Scottish Government and UK Government has been taken to the development of the policy, to ensure a consistent approach across the consenting regimes. Scottish Ministers have devolved legislative and executive competence for application of the Habitats Regulations in the Scottish inshore region (within 12 nautical miles (nm)) and devolved executive competence in the Scottish offshore region (beyond 12nm).
The UK Government retains powers to make legislation in the Scottish offshore region, and any amendments made to the Habitats Regulations through the UK Government’s Statutory Instrument (SI) will apply there. The Scottish Government is responsible for developing guidance on how the policy would apply across both the Scottish inshore and offshore regions.
Therefore, elements of the policy will require legislative change via a Scottish Statutory Instrument (SSI) (applying to the Scottish inshore region) whilst other elements of the policy would be set out in guidance (applying across the Scottish inshore and offshore regions). Further detail is provided in the consultation document.
The purpose of the Business and Regulatory Impact Assessment (BRIA) is to assess likely costs, benefits and risks of any proposed primary or secondary legislation, voluntary regulation, codes of practice or guidance that impact the public, private, third sector or regulators. This partial BRIA will go out to consultation alongside the proposed policy. The findings from the consultation will be analysed and considered, and a final BRIA conducted, before the policy and associated SSI are finalised. The full BRIA will be published alongside the SSI on introduction.