Economic Impact of Wave Energy in Scotland

Overview

Scotland is one of the leading nations at the forefront of the global development and deployment of wave energy devices, possessing significant resource, several of the world’s leading wave energy device developers, and the underpinnings of a suitably equipped supply chain. A commercially successful domestic wave energy sector has the potential to provide a meaningful contribution to Net Zero, Just Transition, energy security and economic growth commitments and ambitions, both in Scotland, and the rest of the UK.

Previous studies have quantified the economic benefits of offshore renewable energy, including wave energy, tidal stream, and floating offshore wind, at an international, European and UK level. However, there have been no recent studies focused on the benefits of wave energy in Scotland.

This study aims to quantify the potential benefits of wave energy to Scotland, in terms of gross value added (GVA) and jobs supported. It also considers the supply chain competitiveness and volume capability required to realise these benefits.

The study determined that if Scotland is successful in achieving wave energy commercialisation at an array scale:

• There could be a potential market for almost 4.5 GW of wave energy in Scotland by 2050,
• Projects in the UK could generate over £4.2bn in economic benefit to the Scottish economy by 2050,
• The sector could support over 9,700 high-value jobs in 2050, with significant additional potential from exports.

As Scottish wave energy technology developers prepare to reach levels of competitive deployment that allows them to successfully bid for and win Contracts for Difference, preparations must begin for a future where the sector moves towards array-scale deployment. To be able to deliver on the potential for wave energy in Scotland, this report provides multiple policy recommendations focused on the following areas:

• Support for wave energy device developers and their supply chains
• Development of essential sector infrastructure
• Utilisation of the extensive experience of its well-established enterprise and innovation support organisations.