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

Assessment findings

How is sectoral marine planning implemented within island communities by Local Authorities?

The existing SMP-OWE (2020) is used in various capacities by local authorities. When undertaking planning activities, such as the development of Local Development Plans (“LDPs”) or Regional Marine Plans (“RMPs”) authorities must refer to existing planning documents to ensure conformity or alignment as appropriate. Local authorities are consulted by the Scottish Government’s Marine Directorate Licensing and Operations Team on marine licence, consent and exemption applications within their relevant areas and may refer to existing marine planning documents to inform their response to these requests. The existing SMP-OWE (2020) has also been used in the development of Shetland Island Council’s Energy Development Principles, a set of principles designed to be promoted to existing and future energy developers and those involved in the regulatory processes^[13]. However, it is acknowledged that the existing SMP-OWE (2020) is of limited use to Local Authorities as it does not contain policies which could influence decision-making.

Development under the updated SMP-OWE may also link to the introduction of the powers introduced under Part 6 of the Islands (Scotland) Act 2018. Scottish Ministers may, by regulations, establish a scheme to licence activities adjacent to or within 12 nautical miles of an island, in respect of designated island licensing areas. Island licensing areas may only be designated, upon application, to a local authority. For any such licence to be granted, the activity would have to be carried out in compliance with the terms set out by the relevant local authority. These powers broadly reflect the powers to licence development works which are currently available in Orkney^[14] and Shetland^[15] through private Acts of Parliament.

The implementation of sectoral planning by Local Authorities is not expected to change as a result of the publication of an updated SMP-OWE.

How do proposals for offshore wind development affect island communities across Scotland?

Since publication of the previous SMP-OWE (2020) public awareness of offshore wind developments has increased, particularly amongst communities that are most likely to be impacted due to their geographic locations. Perceived potential negative impacts and positive benefits have become more tangible as more project-specific information is being made available through developer-led engagement and as licensing and consenting applications are submitted and processed. As public awareness increases, the significance of community “buy-in” in the success of any project across the islands is continually highlighted. An example of community input contributing to the longevity, positive perception and overall success of a project can be seen in the Lamlash Bay No Take Zone located off the Isle of Arran. This site is a community-led marine reserve, established following campaigning by local residents, and has been implemented and monitored successfully since 2008^[16]. This project is often cited in reference to the importance of the need for local communities to be well engaged in, have ownership of and see direct benefits from any development in the area.

A key theme emerging from engagement with representatives of island communities is the concern that locals may struggle to benefit directly from the development of offshore wind infrastructure in their area. Offshore wind development will create a wide range of jobs, both directly (for example in the construction and maintenance of infrastructure) and indirectly (for example through the associated supply chain). Due to the ongoing depopulation of island communities across Scotland, an issue fuelled in part by a lack of available and affordable housing, sustaining a workforce to take advantage of any job opportunities locally is challenging. Attracting working-age people to stay in or relocate to island communities is therefore difficult even if there are jobs available. Additionally, the development of shore bases on islands is more complex than developing supporting infrastructure on the mainland, due to factors such as the difficulty in transporting both materials and workforce and the higher costs of fuel and resources. These issues further contribute to the challenge of attracting and maintaining a workforce in island communities and ensuring that socio-economic benefits of development are felt locally. Alternatively, if housing issues are resolved, an influx of people into an existing island community may not be sustainable or welcomed if local services become overwhelmed.

Across Scottish islands there is growing discontent over the increased cost of power paid by island communities compared to other areas of Scotland and the rest of the United Kingdom. This discontent is exacerbated as the high costs are perceived as being contradictory to the high levels of energy that is generated across the islands, and the proximity of island communities to the potential impacts of development. There is also a feeling that opportunities for communities to benefit from the nearby energy generation have been missed due to the lack of direct transmission to island shore locations.

Most communities feel a strong desire to benefit financially from proposed projects in their local area, either through community benefits paid out by a developer or through shared ownership of developments. Community benefits are additional benefits which are provided by developers to a community, currently on a voluntary basis. These benefits often include a fund, however other measures such as the direct funding of projects, in-kind works or other voluntary site-specific benefits may be considered. Shared ownership provides communities with the opportunity to invest in a commercially owned renewable energy project, defined as being any structure which involves a community group as a financial partner benefitting over the lifetime of the project. Shared ownership is distinct from community benefits. Many feel that these processes should be more heavily regulated through policy and legislation. The Scottish Government does not currently have the power to legislate for community benefits, as this lies with the UK Government^[17]. However, the Scottish Government has recently consulted on ways to improve how communities will receive additional benefits from renewable energy developments. Responses will be used to update existing guidance for onshore and offshore energy developments, setting out the best practice approach for developers and local areas when delivering community benefits.

The importance of meaningful engagement with island communities, by both government and developers, cannot be underestimated. Face to face engagement opportunities is particularly welcomed. This is of particular importance due to the growing number of consultations that will be required throughout the licensing and consenting processes for offshore wind developments, and throughout the development of future policies and plans. There is concern that this could lead to consultation fatigue and potential confusion regarding the different consultation requirements, impacting the ability of individuals and communities to effectively make their voices heard.

Despite the perceived challenges, there is a strong feeling in island communities across Scotland of wanting to see the benefits of commercial-scale offshore wind development, and recognition of the potential investment and creation of job opportunities across islands. Suggestions have been made to re-use local infrastructure where possible, for example existing oil and gas infrastructure in Shetland. Many also express a desire for additional policies to cover issues such as placing a requirement on developers to make use of local supply chains, creating standards for community engagement practices and to set parameters for community benefits. It is recognised that these issues are out with the scope of the updated SMP-OWE to address, as it is a spatial plan and not a statutory policy document.

Eilean Siar (Western Isles)

OA N4 (fixed-bottom turbines) is located off the north-west coast of the Isle of Lewis. This OA was identified following the public consultation on the previous SMP-OWE (2020) scoping^[18], which took place in 2018, to which the response from the Comhairle nan Eilean Siar stated the strong support for marine energy development and specifically suggested that areas landward of the IMO Shipping Route should not be discounted^[19]. The OA N2 (floating turbines) is located further north from the coast of Lewis however fewer concerns have been expressed in relation to this site.

It is recognised that the previous sectoral marine planning process considered an extensive range of impacts, however there is growing concern regarding the perceived visual impact of the development of N4 as it is located in close proximity to the shore. Visual impacts are likely to be experienced by those living locally, and there is additional uncertainty surrounding the potential knock-on effects on tourism and recreation activities in the area. There is an expectation that these concerns may continue to increase as the project progresses. Visual impacts were raised as a possible concern during the consultation on the previous SMP-OWE (2020). This was echoed by questions on how National Scenic Areas^[20] had been considered in the planning process.

Due to the current electricity transmission charges model^[21], which is regulated at the UK level, the Western Isles are subject to higher energy costs. This, in combination with a feeling that any potential impacts will be localised and felt most strongly by the nearby communities, creates a particularly strong desire for access to cheaper electricity for domestic and local commercial use in the Western Isles.

The plan-level SEIA concluded that the most significant potential effects to the tourism sector are from the development of N4, due to a potential reduction in visitor numbers and spend because of the OA being close to land and the importance of tourism to the local area. Water sport activities, in particular recreational angling linked to the launch location in Stornoway, are also likely to be impacted. Stornoway harbour has also been identified as potentially being used by developers in the area to support the construction, operation, and maintenance of arrays within the North region.

Impacts to commercial fisheries may also be felt, however the impacts associated with the development of N4 are much lower than with other OAs in the North region. Vessels fishing within N4 primarily operate from Ullapool (over-12m vessels) and Stornoway port districts (under-12m vessels). The use of fixed bottom turbines in this site has the potential to mitigate impacts to the fishing sector, as activity using static gear, scallop and beam trawls may be able to resume once the site is operational. The development of the N2 OA also has associated impacts to the fishing sector, however the vessels operating in this site are primarily from the Macduff port district and landings are made predominantly into Kinlochbervie and Scrabster.

Shetland Islands

There are 3 OAs (NE1A, NE1B and NE1C, all floating turbines) located off the coastline of the Shetland islands. As described above, these OAs were previously planned for as one which was split during Crown Estate Scotland’s leasing process.

There is growing concern regarding the amount of supporting infrastructure that may be required to develop these OAs and how this may impact upon the local island communities. It has been suggested that further planning exercises could have or should be undertaken to more effectively understand and plan for the cumulative impacts of the proposed developments, both marine and terrestrially. The uncertainty around the potential impacts of cabling and supporting infrastructure are contributing to greater public concern and a growing opposition to the developments. The importance of regional marine planning activities in contributing to addressing these issues in Shetland has been highlighted.

The development of offshore wind may impact upon Shetland’s fishing industry. The seafood sector is of huge importance to Shetland, contributing approximately one third of Shetland’s total economic output. Fishing is a locally owned industry and is relied upon, particularly by the more remote areas of the Shetland islands, meaning that any reduction in fishing activity could have significant knock-on effects to wider society. Any impacts arising from offshore wind development would be felt in combination with those from other industries, such as Shetland’s growing aquaculture sector.

The concerns around potential impacts to the local fishing sector were also voiced during the consultation on the previous SMP-OWE (2020), with suggestions made by fishing industry representatives as to how the OA offshore from Shetland could be refined.

The plan-level SEIA concluded that OAs (specifically NE1A and NE1B) located in the Shetland offshore region have the potential to have a greater impact on the fishing sector relative to other OAs across Scotland, particularly on the over-12m midwater trawl segment of the fleet. However, this is in the context of a more valuable fishery overall, and impacts are likely to vary year-on-year due to spatial changes in fishing patterns. The most important home ports associated with these fishing activities are Lerwick, Whalsay and Scalloway, however substantial portions of the landings from these sites are made outside of Shetland in ports across the UK, Scotland and abroad, particularly in Norway. Impacts are also associated with NE1C, to a lesser extent, with landings predominantly being made into Lerwick and Scrabster.

Other impacts identified of relevance to the Shetland islands through the plan-level SEIA include the potential use of ports such as Lerwick, Scalloway and Sullom Voe to support the installation, operation, and maintenance of arrays. OA NE1B may have impacts to recreational boating, as there is an RYA cruising route which intersects the site.

Orkney Islands

There are 2 OAs (N1 (fixed bottom turbines) and NE2 (floating turbines)) located around the Orkney islands. It is recognised that the surrounding marine area is a busy space, and that the sectoral marine planning process has done a useful job in avoiding most of the significant impacts that could have arisen if a plan-led approach had not been taken.

The proposals for offshore wind developments are a key driver behind harbour development projects across Orkney, however concerns remain regarding the level of resource and infrastructure required to support this. None of the developments proposed across the OAs off the coast of Orkney islands are expected to provide direct energy connections^[22]. This lessens the amount of onshore infrastructure required on the coasts of Orkney.

The level of potential visual impact of offshore developments is not yet clear, however concerns have been raised that this may have a negative impact on the “Orkney brand” and tourism across the islands. Offshore developments may impact on the character of the seascape, as well as on ferry services which both locals and tourists rely on.

The development of offshore wind may also impact upon the local fishing industry. Of particular concern is the crab fishing fleet operating within the area, which could potentially be excluded from POs and may be entitled compensation.

Similarly, during the consultation on the previous SMP-OWE (2020) concerns were raised that the potential impacts of grid connection, transmission charging and onshore infrastructure had been overlooked as the SMP-OWE focusses on the impacts of the development of POs only. There was also a feeling that the development of commercial scale offshore wind energy in waters around Orkney could take the focus away from other aspects of energy generation such as hydroelectric, onshore wind, hydrogen, and battery storage.

The plan-level SEIA concluded that the key impact of relevance associated with the development of OA N1 is on commercial fisheries. Demersal trawl activity is likely to be fully displaced from the site, however operations using pots, traps and creels may be able to resume to some extent within the site once operational. Vessels fishing within N1 predominantly operate from Kirkwall (both over-12m and under-12m vessels), and landings are also predominantly made into Orkney. Development of NE2 is also likely to impact upon commercial fisheries, however vessels associated with this are primarily operate out of Fraserburgh or unknown home ports, and landings are predominantly made into Peterhead.

Other impacts of relevance to the Orkney islands which have been identified through the SEIA process include the identification of ports and harbours at Scapa Flow and Lyness for the installation and operation and maintenance phases of project development. Both OAs N1 and NE2 intersect with RYA cruising routes. OA N1 overlaps with the VisitScotland “Orkney” region, however this overlap is due to the Sule Skerry and Sule Stack islands which are uninhabited with no regular tourist trips and so impacts to tourism as a result of N1 development are not expected to be significant.

Highland

The island communities of the Highlands are primarily located off the west coast of Scotland. As the OAs are concentrated on the north and east coasts, or are further south-west, impacts to the Highland’s Island communities are likely to be more closely linked to the supply chain or associated transmission network infrastructure, rather than arising directly from the development of OAs.

Argyll and Bute

OA W1 (fixed bottom turbines) is located off the western coast of the Isle of Islay in Argyll and Bute, and OA IN5 is located further offshore towards the coast of Northern Ireland. Direct impacts to communities may arise through the visual impact of development, however the extent of this is not yet clear as it will be dependent on the size and visibility of the turbines from the shore. Concerns have been raised that the perceived negative visual impact of turbines could have a knock-on effect on the island’s tourism sector. It is noted that the western coast of Islay is sparsely populated and the location of W1 may have a lesser impact than it would if it were located elsewhere around the coast of the island.

Local communities hold a particular interest in opportunities for the shared ownership of projects, as well as opportunities for grid connection. There is a concern that poor grid connection could limit access of the island communities to the benefits of offshore developments.

These feelings are largely similar to those expressed during the consultation on the previous SMP-OWE in 2020. Questions raised at the face-to-face event held on Islay highlighted the desire for the island to have direct access to a greener fuel source, community benefits and funds to be paid by developers and for local people to benefit from potential employment opportunities.

The plan-level SEIA identified that development of the W1 OA has the potential to impact upon local commercial fisheries, however the use of fixed bottom turbines means that access to static gear types could be maintained within the site. The majority of vessels operating within this OA were registered to and made landings at ports outside of the local island communities, in either Northern Ireland (over-12m vessels) or Oban and Campbeltown (under-12m vessels). Other impacts identified are to water sports, particularly recreational angling, recreational boating, and tourism, due to the close proximity of the site to the shore.

The IN5 OA is significantly smaller than most other POs within the draft updated SMP-OWE, and so the potential impacts associated with its development are lessened. However, there are still impacts identified to commercial fisheries and the majority of landings associated with this site are made into Port Ellen.

North Ayrshire

The Plan does not include any OAs within the area offshore from North Ayrshire or within 12nm of islands within North Ayrshire. However, there is ambition within the area to move away from fossil fuel energy sources and towards renewables, with particular interest in smaller-scale community owned projects. There is also recognition that existing infrastructure within the area could have a role in the supply chain for offshore wind deployment, particularly across the west of Scotland.