Chamber and committees

Scottish Enterprise are investing in project development at Dundee, Leith and Rosyth and in project delivery at Methil, Hunterston, Inchgreen and Westway.

Similarly Highlands and Islands Enterprise are investing in project development at Kishorn and Wick and project delivery at Arnish, Macrihanish, Nigg, Scrabster and Mallaig.

Leverage at the project development stage is in the form of private sector involvement in masterplanning and site appraisal processes. At project delivery stage leverage arises from the appraisal of each individual project. Therefore, the amount of private sector investment at each site is as follows:

The oil stored at the SSE Power Station Loch Carnan is used on site, and as such is subject to the requirements of the Water Environment (Oil Storage) (Scotland) Regulations 2006.

The Kirkwall Fuel Depot is an oil storage facility used for the onward distribution of oil, and such installations are exempt from the Regulations.

A guidance note, Model Code of Safe Practice Part 2: Design, construction and operation of petroleum distribution installations (3rd edition) by the Energy Institute http://www.energyinst.org.uk/ is specifically focused at distribution installations.

In the National Renewables Infrastructure Plan (N-RIP 2) an analysis was carried out to identify the potential direct job benefits arising from the development of all the sites identified. This illustrated that should all the sites be developed for their assumed set of uses Scotland would benefit from 5180 direct manufacturing jobs. This analysis does not include multiplier effects or jobs arising from research and development, installation processes and on-going operation and maintenance jobs. For further detail please refer to N-RIP 2 Report, Section 7.

The projects that have been supported and those under development indicate that this magnitude of direct manufacturing employment is achievable.

The 28,000 jobs is a longer term target. Scotland is already seeing significant progress with announcements from inward investors such as Gamesa, Samsung Heavy Industries, Areva of their intention to locate manufacturing in Scotland and announcements by Scottish companies of investments in the sector.

The figure of up to 28,000 jobs in offshore wind were estimated in the Creating an Industry report commissioned from independent consultants IPA Energy and Water Economics which provided the baseline data for Scotland's Offshore Wind Route Map. The report estimated job creation across a range of sectors from development through supply and installation to operation but did not attribute specific job numbers to individual tasks.

Through the development of the National Renewables Infrastructure Plan both Scottish Enterprise and Highlands and Islands Enterprise worked closely with the identified ports and therefore encouraged them to submit expressions of interest in the National Renewables Infrastructure Fund (NRIF).

As a result the majority of interest was noted in the first two years of the Fund, as shown below.

2010: 27

2011: 12

2012: 3

2013: 0

The call remains open for those ports keen to take advantage of the offshore renewables opportunity.

All applications to REIF are assessed for their additional socio- economic impact through consideration of the scale and nature of benefits, (renewable energy generated/ electricity decarbonised, Gross Value Added/ jobs created, community benefits and private investment levered), the extent to which these benefits are additional, (i.e. would not be realised in the absence of REIF monies), supply chain benefits, the concentration of benefits within Scotland and the effect on existing economic activity.

National Renewables Investment Fund forms part of a suite of support that Scottish Enterprise and Highland and Islands Enterprise have in place to assist the development of this new industry in Scotland. Investment in manufacturing sites is critical to securing the manufacturing element of this overall benefit to the economy.

REIF has to date offered support to three deals alongside significant private sector investment. A strong pipeline of projects is under consideration.