Scottish Government faces scrutiny over £755m ScotWind funds

Audit Scotland has called for greater transparency from the Scottish Government regarding the use of £755 million generated through the ScotWind offshore wind leasing round. The public spending watchdog noted that while the leasing process secured seabed option agreements for 20 projects, it remains unclear how the government has utilized £96 million of the funds collected to date to support the transition to net zero.

Auditor General Stephen Boyle described the leasing round as a “high risk and reward” approach. He noted that while long-term leases could benefit Scotland for 60 years, the capped pricing model used instead of open auctions could result in reduced public revenues if developers relinquish their options. Additionally, the watchdog highlighted that no single business case was established for the leasing round and expressed uncertainty regarding whether the process represents true value for money.

The funds are held by Crown Estate Scotland on behalf of the Scottish Government, which has the authority to use the money to balance the budget. One specific allocation includes a £10 million capital grant for inter-island connectivity, intended for a new ferry, which is to be funded by ScotWind revenue.