Scottish renewables sector 'supports tens of thousands of jobs'

A new report by the Fraser of Allander Institute has revealed that Scotland’s renewable energy industry and its supply chain supported more than 47,000 jobs and contributed around £15.5 billion in economic output in 2022.

Commissioned by Scottish Renewables, the report highlights the industry’s economic strength, with offshore and onshore wind leading in both employment and output.

Chief executive of Scottish Renewables, Claire Mack said: "This report provides a valuable insight into the economic contribution of our industry as we transition to a cleaner, more sustainable energy system.

"It reflects the impact of major developments such as the Moray East offshore and Viking onshore wind farms.

"The energy crisis and rising wholesale costs have underlined the importance of accelerating clean energy deployment.

"However, our industry has faced significant challenges, including supply chain disruptions and increased costs, making projects more expensive to deliver."

The study found that offshore wind was the largest employer within the sector, supporting an estimated 19,580 full-time equivalent (FTE) jobs.

Onshore wind followed with 16,865 jobs, while renewable heat accounted for 4,095 jobs.

Offshore wind also generated more than £6.8 billion in economic output, just ahead of onshore wind at £6.4 billion.

Hydropower contributed £1.4 billion.

Ms Mack said: "We are working closely with government to overcome these issues and ensure that the renewable sector continues to support jobs and economic growth.

"With Scotland playing a key role in the UK’s target to decarbonise power by 2030, our industry will remain a vital part of the national economy.

"We also urge both the UK and Scottish governments to improve data collection efforts so we can better measure and track the sector’s impact moving forward."

The report, the third of its kind jointly produced by Scottish Renewables and the Fraser of Allander Institute, is based on the latest available data from the Office for National Statistics (ONS).

Director of the Fraser of Allander Institute, Professor Mairi Spowage said: "We’ve seen notable shifts in economic activity within the renewable sector in 2022, with more capacity moving from the construction to generation phase.

"These changes affect the structure of the supply chain and will continue as the industry matures.

"The economic environment is becoming more complex, and the sector’s GVA has been constrained.

"It’s crucial that policymakers foster a competitive environment to maximise the benefits of the energy transition."

The report notes that while the sector continues to grow, challenges such as rising costs and supply chain issues have limited further gains in gross value added (GVA) and job creation.