Offshore wind energy - draft updated Sectoral Marine Plan: islands communities impact assessment

Introduction

Under Section 8 of the Islands (Scotland) Act 2018^[1] relevant authorities are required to undertake an Island Communities Impact Assessment (“ICIA”) in relation to a policy, strategy or service which, in the authority’s opinion, is likely to have an effect on an island community that differs significantly from its effect on other communities (including other island communities) in the area in which the authority exercises its functions. This duty applies to the development, delivery and redevelopment of the policy, strategy or service.

Given the relevance of the updated Sectoral Marine Plan for Offshore Wind Energy (“SMP-OWE”) to various island communities across Scotland, the Scottish Government is committed to conducting an ICIA as part of the planning process. In line with the 2018 Act and Best Practice Guidance^[2], this pre-consultation (partial) ICIA report:

• Identifies and describes areas where the updated SMP-OWE may have an effect on an island community which is likely to be significantly different from its effect on other communities (including other island communities);
• Makes use of initial evidence gathered through consultation with local authorities with jurisdiction over inhabited islands and other organisations representing island communities;
• Is subject to public consultation to gather additional evidence and views of island communities, to be considered in the finalisation of the ICIA report and the SMP-OWE.

Aims and expected outcomes of the updated Sectoral Marine Plan for Offshore Wind Energy

The existing SMP-OWE^[3] was published by Scottish Ministers on 28 October 2020. The purpose of this Plan was to identify Plan Options (“POs”) as areas suitable for the sustainable development of commercial-scale (>100 MW) offshore wind projects. Offshore wind refers to the generation of energy from floating and fixed bottom wind farms in a body of water, normally in the sea. This planning process accounted for a maximum generation capacity of 10GW across Scotland’s marine area. Following publication of the SMP-OWE (2020), Crown Estate Scotland undertook the “ScotWind” leasing round^[4], through which Option Agreements were awarded to a total of 20 projects with the potential to generate 27.6GW of energy over a maximum area of 7,903km². This figure has since increased to 31GW across the same footprint. This planning process also included the production of an ICIA^[5] report.

The Iterative Plan Review (“IPR”) process aims to update the existing SMP-OWE, taking into consideration new evidence and data which has become available since 2020. This includes the results of the ScotWind leasing round, and the subsequent Innovation and Targeted Oil and Gas Decarbonisation (“INTOG”) leasing round^[6], through which an additional 12 projects have accepted Exclusivity Agreements. Additionally, a total capacity of 1GW for the potential future leasing of Test and Demonstration projects has been considered. The result will be an updated spatial plan, supported by updated environmental and socio-economic impact assessments and a proposed framework for plan-level mitigation and strategic compensatory measures for environmental impacts. This updated SMP-OWE will consider the generation of 37.4GW across Scotland.

The INTOG planning process has been driven by the UK Government’s “North Sea Transition Deal^[7]” which seeks to support the transition of the UK’s oil and gas production industry to a net zero economy and sets ambitious targets for the sector to decarbonise its operations rapidly. Most of the existing and proposed oil and gas platforms in Scottish waters lie at distances from shore beyond the extent of ScotWind sites, meaning that direct connections for electricity transmission are not viable. This suggested the need for a planning round with the specific purpose of developing offshore wind infrastructure to decarbonise oil and gas production operations. The INTOG round also accounts for a total of 500MW of “innovation” projects (not “commercial scale” electricity generation) to be developed. The INTOG Initial Plan Framework^[8] provided the outline of the Areas of Search to be considered for location of sites for development.

The updated SMP-OWE and associated evidence base of impact assessments will support the seabed leasing, licensing, and consenting processes for the proposed ScotWind and INTOG sites. It is not a statutory plan; however, it will be considered alongside any adopted statutory marine plans which may apply at either a national or a regional level. The SMP-OWE provides the strategically planned spatial footprint for offshore wind development in Scottish waters, supporting the delivery of offshore wind in line with Scottish and UK targets for development, emissions reduction, and energy security. The SMP-OWE does not contain specific policies that prescribe how a development must be undertaken, for example in relation to the supply chain, employment opportunities, community benefits or workforce requirements. Through the licensing and consenting processes each project will be expected to assess the potential impacts on the local area and engage upon their findings with affected communities.

Alignment with National Islands Plan

The National Islands Plan (2019)^[9] sets out 13 Strategic Objectives to improve outcomes for island communities, to be delivered against by other relevant plans, policies, strategies, and measures. The updated SMP-OWE and its implementation through subsequent licensing, consenting, and leasing processes, can act as a delivery mechanism against two of the Strategic Objectives, specifically:

• Strategic Objective 2: To improve and promote sustainable economic development
• Strategic Objective 9: To contribute to climate change mitigation and adaptation, and promote clean, affordable, and secure energy

The delivery of offshore wind more broadly could contribute, directly or indirectly, to the delivery of the other objectives of the National Islands Plan, however contributions to issues such as population decline, fuel poverty and housing are out with the scope of sectoral marine planning.