seabed where they intend to build enough wind farms to power 23 million UK homes a year. Several major oil companies, including BP and Shell, together with renewable energy veterans Scottish Power and SSE, were awarded permissions by Crown Estate Scotland to lease the plots on which 17 wind farm projects will kick-start Scotland’s ‘biggest industrial investment programme’.
The permits will lay foundation for companies to develop 25GW of offshore wind capacity, more than double the UK’s existing capacity of 10GW and equal to Europe’s current combined capacity. Simon Hodge described the results of the auction as “a fantastic vote of confidence” in the European state’s role in the offshore wind ambitions, that it will deliver almost £700 million (US$954.17 million) “straight into the public finances”.
The bidders who secured permits have also vowed to invest about £1 billion in material and services from Scottish companies for every 1GW of offshore wind capacity built. This is expected to put local firms in line for investments worth £25 billion. On the other hand, although Crown Estate Scotland manages the Queen’s property, its profits are not returned to the Treasury or the Queen. Instead, they are directed towards the Scottish Consolidated Fund, which in turn finances the Scottish government.
