Speaking at a London conference Marchant warned that offshore wind projects were failing to bring capital and operational expenditure down as pledged and costs could even be increasing. “I fear that it is an industry that over-promised and in future may under-deliver,” he told the conference.
Marchant, now chairman of onshore wind, hydro and landfill developer Infinis Energy, said the offshore industry five years ago had forecast wiping a third off the then £150/MWh cost of building and running an offshore array. “There is no evidence we have moved in that direction and, in fact, there is evidence that we have moved in the opposite direction,” he said. He went to say investment capital for offshore wind projects was in short supply.
Senior policy manager for trade body, Scottish Renewables, confirmed that there were significant challenges for Scottish offshore developments: “Uncertainty has grown throughout the sector as none of the major projects planned for Scottish waters has had planning applications determined yet and the details around accessing market incentives are still unclear.”
He said the technology could become an “expensive luxury” that Scotland will not be able to afford.