Scottish Sectoral Marine Plan means more government work required to deliver offshore wind development

Gordon McCreath and Imogen Dewar of Pinsent Masons were commenting on the updated plan (SMP2) building on the 2020 Sectoral Marine Plan (SMP-OWE 2020), which identified 15 spatial “plan options” and supported the landmark ScotWind leasing round. The new draft plan sets out an integrated planning framework for both the ScotWind and Innovation and Targeted Oil and Gas (INTOG) leasing rounds, as well as considering possible additional capacity for test and demonstration (T&D) projects.

McCreath said: “The draft updated SMP2 and associated consultation is hugely relevant for those involved in the Scottish offshore wind sector, and has been long anticipated by those involved in all stages of development origination, planning application, consenting and investment phases. The draft SMP2 makes for essential reading.”

The draft SMP2 sets out the economic, environmental and social opportunities and constraints for offshore wind development in Scottish waters. It identifies potential impacts of development on receptors, designated species and sites, at a plan level. The important impacts identified include impacts to offshore ornithology – the risks of collision or displacement of birds – navigation risks, and the potential significant effects on landscapes and seascapes for developments of those projects potentially visible from the inhabited shoreline.

In particular, the draft SMP2 and associated draft Habitats Regulation Appraisal (HRA) undertake a plan-level appraisal of the impacts of offshore wind development on environmental receptors including seabirds. A key message of the draft SMP2 is an indicative finding of ‘adverse effects on integrity’ (AEoI) on seabirds assessed as part of the HRA. 

Dewar said: “Industry stakeholders may in particular be interested to note that the draft SMP2 highlights the precautionary approach to assessment that has been taken when reaching this provisional assessment conclusion. The draft SMP2 states that the Scottish ministers are building on evidence available to understand the uncertainty associated with offshore wind assessments for marine birds to inform the plan level appropriate assessment. Therefore, it will be important for developers to scrutinise the approach to assessment undertaken in development of the draft SMP2 and provide relevant feedback through the consultation process.”

McCreath said: “The acknowledgment of the provisional, precautionary nature of the assessment is welcome, but developers will need to challenge the areas where it is over-precautionary in their consultation responses. The SMP is clear that project-level assessments will not be bound by the results of the plan-level one, also there are positive commitments by the Scottish government to continue to consider all of the evidence, including from operational projects, which have shown actual impacts to be less than originally predicted. However, it will still be a challenge to move the project level dial away from the plan-level precaution. That is what will have to happen if these projects and the major benefits that they offer are to be delivered in good time."

As long as a finding of AEoI remains, an HRA derogation case, including compensation that can be secured, will be required before the plan can be approved by Scottish ministers. The SMP does not include that derogation case but does note the urgency of identifying those compensation measures, including strategic compensation. The UK government is currently developing a Marine Recovery Fund (MRF) to enable a strategic approach to compensating for the impacts of offshore wind development on the marine environment. However, the UK fund is not currently proposed to extend to impacts from Scottish projects, as it had been understood that a Scottish MRF will come forward.

The SMP2 does not contain a clear proposal for a Scottish MRF. Instead, it refers to the “potential establishment” of a Scottish MRF, stating this would require the UK government to delegate functions to enable a Scottish MRF to be operated. 

“Certainty and clarity is absolutely critical for offshore wind projects located in Scotland or having impact on Scottish designated and protected sites. The SMP2 needs to give projects more reassurance that there is a clear path to a Scottish MRF, or for Scottish projects to access the UK MRF, and a clear timescale for their delivery” said Dewar.

McCreath said: "The Habitat Regulations Appraisal accompanying the SMP recommends government strategic intervention to develop compensation measures as soon as possible, to avoid delays to project approvals. The Scottish government ought to use the SMP as its incentive to urgently settle and approach the menu of compensation measures that will be necessary to deliver these important projects. Strategic compensation, delivered via whatever mechanism is fastest, is key to achieving that as efficiently and effectively as possible."

The SMP2 is expected to guide further leasing rounds by Crown Estate Scotland and inform investment decisions across the energy sector. It also aligns with Scotland's statutory climate targets which include achieving net-zero emissions by 2045. 

The public consultation closes on 22 August, with feedback to be used to refine and finalise the plan.

In parallel with the marine planning update, the Scottish government has reaffirmed its financial commitment to the offshore wind sector. As part of the 2025-26 budget, £150 million in capital funding has been allocated to accelerate offshore wind infrastructure, with a total of £500 million pledged over five years. This investment is expected to support job creation, supply chain development, and the transition of oil and gas workers into the renewables sector.

McCreath said: “Again, this is welcome, but the real game changer required immediately for the Scottish offshore wind sector is for the Scottish government to start granting deliverable consents. With developers cutting back on project investment as a direct result of planning delays, the need for action has never been more urgent.”