Offshore wind energy - draft updated Sectoral Marine Plan: partial business and regulatory impact assessment
The purpose of the business and regulatory impact assessment for the draft updated Sectoral Marine Plan for offshore wind energy is to determine where the implementation of the Plan may have impacts on regulatory processes.
Annex A: Gap analysis - comparison of BRIA requirements against scope of SEIA
Consultation
BRIA Requirement
Within government, public consultation, business discussions.
SEIA completed for the Plan addresses?
Work is underway on updating the Plan, by working with stakeholders to consider the potential impacts on the marine environment and other marine sectors.
This includes extensive engagement with a wide range of relevant stakeholders (i.e. commercial fisheries, commercial shipping, renewable energy developers) over the past year through engagement with Steering Group members (Annex C). Steering Group members have been given early sight on the SEIA, where they have had the opportunity to review and provide feedback on the scope of the assessments, methodology, data usage and assumptions.
Officials also regularly engage with internal Scottish Government and UK Government stakeholders.
The draft Plan and the relevant assessments (including the BRIA) will be subject to public consultation.
Options
BRIA Requirement
List and description of options considered (including do-nothing).
SEIA completed for the Plan addresses?
The option to do nothing is not considered viable as Scottish Ministers have committed to completing an Iterative Plan Review (IPR) set out in the existing Plan. This is based on the latest evidence and planning assumptions, spatial footprint, technology and scientific research. The Plan requires updating to consider the additional increased energy generation capacity resulting from the ScotWind and INTOG leasing rounds.
The option to update the Plan is therefore necessary to assess for the increased capacity, newly available evidence as well as include assessing the amount of of compensatory measures if required to inform a more strategic approach to compensation and instigate a derogations process for the Plan if required.
The SEIA tests a range of development scenarios based on the defined Option Agreements (OA) and Exclusivity Agreement (EA) areas, and the potential installed capacity and types of technologies from the award announcements, supplemented by additional information via ScotWind developers.
The Plan is subject to the Strategic Environmental Assessment (SEA), Habitats Regulation Appraisal (HRA) and SEIA being completed. All assessments will be subject to public consultation.
Sectors and groups affected
BRIA Requirement
Which sectors and how? Benefits associated with options considered.
SEIA completed for the Plan addresses?
The SEIA considers the potential impacts (negative and positive) across a range of sectors, including renewable energy developers, commercial fisheries, commercial shipping, navigational safety, tourism and recreation, throughout all phases of development (e.g. pre-application surveys to operation and maintenance and decommissioning).
The SEIA tests a range of development scenarios based on the defined Option Agreements (OA) and Exclusivity Agreement (EA) areas, and the potential installed capacity and types of technologies from the award announcements, supplemented by additional information via ScotWind developers.
The previous Plan was developed on a technology neutral basis (worst case scenarios for each receptor were used, i.e. assumption of total displacement from fishing grounds). Based on information provided by developers, the SEIA is able to account for the different foundation types installed across each of the OAs and EAs as well as the associated impacts. Sites are expected to become operational between 2028 and 2033, and INTOG sites are assumed to become operational by 2030. Technology choice is taken into consideration where this may affect socio economic impacts.
Full details will be provided in the SEIA report.
Costs
BRIA Requirement
Costs associated with options considered
SEIA completed for the Plan addresses?
Socio-economic costs associated with environmental impacts (which vary according to technology) will be assessed, mitigated and reduced via the project-level Environmental Assessments and Habitats Regulations Appraisals and should not be of sufficient magnitude to give rise to significant socio-economic impacts. No restrictions on businesses exist and they are free to make own financial and commercial decisions.
Full details will be provided in the SEIA report.
Regulatory and EU Alignment Impacts
International Trade:
BRIA Requirement
Does this measure have the potential to affect imports or exports of a specific good or service, or groups of goods or services? Does this measure have the potential to affect trade flows with one or more countries? Does this measure include different requirements for domestic and foreign businesses?
SEIA completed for the Plan addresses?
The SEIA considers supply chain development utilising scenarios and assumptions on how, where and why the supply chain could grow and/or change in response to levels of investment. The updated Plan will not have any impact on trade obligations as areas have already been leased, with some to international developers. Supply chain opportunities will not be impacted and the Plan does not contain policies on developer business practices.
EU Alignment:
BRIA Requirement
Will it impact Scottish Government’s commitment to maintain and advance the high standards that Scotland shares with the EU, effect access to EU markets for people, goods and services or have any implications for EU alignment associated with the United Kingdom Internal Market Act 2020 or Common Framework agreements?
SEIA completed for the Plan addresses?
Not applicable, there are no effects or impacts on the Scottish Government’s commitment to shares with the EU or access to EU markets.
Implementation:
BRIA Requirement
How will implementing this policy affect alignment?
SEIA completed for the Plan addresses?
Not applicable.
Scottish Firms Impact Test
BRIA Requirement
Will it have an impact on the competitiveness of Scottish companies within the UK, or elsewhere in Europe or the rest of the world?
SEIA completed for the Plan addresses?
The deployment scenarios and planning assumptions in the SEIA will assess how, where and why the supply chain could grow and/or change in response to the levels of predicted investment. Quantitative assumptions on the potential scale of future developments, the possible future technologies, the indicative programme of investment and where that investment will be targeted provide the basic scenario assumptions. Scenario storylines have been developed to explain how the investment could result in changes to the supply chain in associated Nomenclature of Territorial Units for Statistics (NUTS) level 2 areas. The Plan however does not include policies on supply chain, and information on this has been drawn from Supply Chain Development Statements (SCDS) provided by developers.
Consultation is ongoing through the Plan review process with Highlands and Islands Enterprise, Scottish Renewables, Scottish Enterprise and South of Scotland Enterprise regarding the proposals, as well as via presentations at industry-wide events and meetings with steering group members (Annex B).
Sites for Scotwind and INTOG leasing rounds have already been leased by Crown Estate Scotland leasing programme and developments will be subject to licensing and consenting regimes.
The updated Plan only sets the spatial parameters for offshore wind development and does not contain policies relating to future employment or offshore wind supply chain development. Any impacts to individuals are dependent on future commercial decisions made by offshore wind developers.
Full details will be provided in the SEIA report.
BRIA Requirement
How many businesses and what sectors is it likely to impact on?
SEIA completed for the Plan addresses?
Sectors: commercial shipping, commercial fisheries, inshore fisheries, recreation, tourism, oil and gas, ports and harbours, military activities, energy generation, carbon capture and storage, aviation, aquaculture, telecommunications (cables) and waste disposal (dredge material and disposal sites).
Annex B shows a full list of Steering Group members who are involved throughout the Plan development and assessment process.
Full details will be provided in the SEIA report.
Competition Assessment
BRIA Requirement
Identifying the relevant markets, products or services which might be affected by a policy and possible restrictions on competition in these markets resulting from the policy proposals
SEIA completed for the Plan addresses?
The draft SEIA has not identified any evidence that the updated Plan will have an impact on the competitiveness of firms in Scotland.
Sites have already been leased by Crown Estate Scotland leasing programme, and developments are subject to licensing and consenting regimes. A technology neutral approach was used for the identification of sites means that any technology can be deployed, thus not restricting development in any one site to any one type of technology or supplier.
Competition may arise from competition for space with certain sectors (i.e. carbon capture and storage, displacement from established fishing grounds) and these impacts have been assessed and quantified in the SEIA report.
Competition Assessment
BRIA Requirement
Does the policy affect the quality, availability or price of any goods or services in a market? Does the policy affect the essential services market (such as energy or water)? Does the policy involve storage or increased use of consumer data? Does the policy increase opportunities for unscrupulous suppliers to target consumers? Does the policy impact the information available to consumers on either goods or services, or their rights in relation to these? Does the policy affect routes for consumers to seek advice or raise complaints on consumer issues?
SEIA completed for the Plan addresses?
The draft SEIA has not identified any evidence that the updated Plan will have an impact on the competitiveness of firms in Scotland.
Sites have already been leased by Crown Estate Scotland leasing programme, and developments are subject to licensing and consenting regimes. A technology neutral approach was used for the identification of sites means that any technology can be deployed, thus not restricting development in any one site to any one type of technology or supplier.
Competition may arise from competition for space with certain sectors (i.e. carbon capture and storage, displacement from established fishing grounds) and these impacts have been assessed and quantified in the SEIA report.
Consumer Assessment
BRIA Requirement
Does the policy affect the quality, availability or price of any goods or services in a market? Does the policy affect the essential services market (such as energy or water)? Does the policy involve storage or increased use of consumer data? Does the policy increase opportunities for unscrupulous suppliers to target consumers? Does the policy impact the information available to consumers on either goods or services, or their rights in relation to these? Does the policy affect routes for consumers to seek advice or raise complaints on consumer issues?
SEIA completed for the Plan addresses?
The updated Plan does not affect the quality, availability or price of any goods or services on the market.
The updated Plan will support future energy production and will help to facilitate the development of an additional 27.6GW of capacity in offshore waters, as well as 5.4GW for INTOG. Decarbonisation of other sectors is out of the scope of the Plan.
The scale and timing of such generating capacity becoming available cannot be accurately predicted. However, additional generating capacity will increase security of energy supply and may result in reduced costs for consumers. Given future demand and supply scenarios, it is expected that Scotland will be capable of exporting power to England.
The future requirement for and contribution of offshore wind to UK supply will depend on the cost competitiveness of offshore wind, compared to other forms of generation.
Any upgrades to the national grid infrastructure/network required as a result of increased offshore wind development cannot be accurately predicted at present, as these are driven by market demand and other factors out with the updated Plan. Any such upgrades/improvements will be subject to BRIA via the National Grid at the relevant point.
Test Run of Business Forms
BRIA Requirement
Test run of business forms with sample size (6-12)
SEIA completed for the Plan addresses?
Not applicable. There are no new business forms associated with this proposal. Applications for development are subject to the licensing, consenting and leasing regimes.
Digital Impact Test
BRIA Requirement
Consideration to ensuring that the proposal is consistent with the increasing shift of economic, social and governmental interactions online.
SEIA completed for the Plan addresses?
Not applicable. The final Plan Options will be made available on National Marine Plan Interactive (“NMPi”) and updated as required.
Legal Aid Impact Test
BRIA Requirement
Implications on individuals’ right to access to justice through availability of legal aid and possible expenditure from the legal aid fund (i.e. new procedure or right of appeal, or change in procedures, or any change of policy or practice which may lead people to consult a solicitor).
SEIA completed for the Plan addresses?
The updated Plan does not engage the Legal Aid fund and we are not creating a new right of appeal, therefore this test is not applicable.
Enforcement, sanctions and monitoring
BRIA Requirement
Development of effective monitoring mechanisms to assess compliance and whether (or to what extent) your policy (and associated regulatory interventions) is meeting the original objective. Take into consideration existing monitoring mechanisms, responsibility for monitoring, costs, frequency and reporting mechanism.
SEIA completed for the Plan addresses?
No enforcement or sanction measures associated with the Plan.
The Plan will be subject to iterative plan management. Monitoring requirements will be outlined in the draft updated Plan itself, but no formal monitoring/achievement/reporting mechanisms are required as part of the Plan and, therefore, these impacts have not been assessed as part of the SEIA.
Costs for reviewing and updating the updated Plan (including reviewing environmental monitoring data gathered via other mechanisms, further assessment and/or consultation) borne by Scottish Government within existing budget allocations.