6.2. Operation and Maintenance

6.2.1. Ossian Impact

Based on the estimated annual expenditure for Ossian as a whole, the technical expert’s model of costs and the information provided in the SCDS it was assumed that under PDE Option 3 the annual operation and maintenance expenditure could be £247 million, of which £76 million (31%) could be secured in Scotland and £219 million in the UK (89%). This is shown in Table 6.10.

Table 6.10: PDE Option 3: Ossian Operation and Maintenance Spending by Category, Scotland and the UK

Parameters	Scotland	UK (Inc. Scotland)	Total (Scotland, rUK and rWorld)
Operational Training	£4 m	£4 m	£5 m
Operational Onshore Logistics	£2 m	£2 m	£3 m
Operational Offshore Logistics	£9 m	£13 m	£13 m
Health and Safety Inspections	£1 m	£1 m	£1 m
Seabed Lease	£17 m	£17 m	£17 m
TNUoS Charges	£0 m	£106 m	£106 m
Operational Insurance	£0 m	£12 m	£12 m
Operations Centre and Support Staff	£14 m	£18 m	£18 m
Wind Turbine Maintenance and Service	£16 m	£23 m	£47 m
Balance of Plant Maintenance and Service	£11 m	£18 m	£21 m
Maintenance Vessels	£2 m	£4 m	£4 m
Maintenance Port	£1 m	£1 m	£1 m
Total	£76 m	£219 m	£247 m
Total (%)	31%	89%	100%

Applying turnover per employee and turnover/GVA ratios for the relevant sectors it was estimated that Array’s direct annual economic impact could be £29 million GVA and 350 jobs in Scotland, and £64 million GVA and 600 years of employment in the UK (Table 6.11).

Table 6.11: PDE Option 3: Ossian Operation and Maintenance Direct Economic Impact, Scotland and the UK

Parameters	Scotland		UK
	GVA	Jobs	GVA	Jobs
Operational Training	£2 m	40	£2 m	40
Operational Onshore Logistics	£1 m	10	£1 m	10
Operational Offshore Logistics	£2 m	20	£3 m	30
Health and Safety Inspections	<£1 m	0	<£1 m	0
Seabed Lease	£10 m	100	£10 m	100
TNUoS Charges	£0 m	0	£22 m	110
Operational Insurance	£0 m	0	£4 m	20
Operations Centre and Support Staff	£3 m	30	£4 m	40
Wind Turbine Maintenance and Service	£5 m	60	£7 m	80
Balance of Plant Maintenance and Service	£4 m	70	£8 m	120
Maintenance Vessels	£1 m	10	£2 m	30
Maintenance Port	<£1 m	0	<£1 m	0
Total	£29 m	350	£64 m	600

Applying GVA and employment multipliers it was therefore estimated that the Array’s annual economic impact could be £49 million GVA and 570 jobs in Scotland, and £195 million GVA and 1,670 years of employment in the UK (Table 6.12) (Table 6.13).

Table 6.12: PDE Option 3: Ossian Operation and Maintenance GVA impact, Scotland and the UK

Parameters	Scotland	UK
Direct GVA	£29 m	£64 m
Indirect GVA	£11 m	£85 m
Induced GVA	£8 m	£46 m
Total GVA	£49 m	£195 m

Table 6.13: PDE Option 3: Ossian Operation and Maintenance Employment impact, Scotland and the UK

Parameters	Scotland	UK
Direct Employment	350	600
Indirect Employment	160	810
Induced Employment	60	260
Total Employment	570	1,670

6.2.2. Array Impact

For the Array it was estimated that the annual spend could be £247 million, of which £73 million (30%) could be secured in Scotland and £214 million (87%) could be secured in the UK (Table 6.14).

Table 6.14: PDE Option 3: Array Operation and Maintenance Spending by Category, Scotland and the UK

Parameters	Scotland	UK (Inc. Scotland)	Total (Scotland, rUK and rWorld)
Operational Training	£4 m	£4 m	£5 m
Operational Onshore Logistics	£2 m	£2 m	£3 m
Operational Offshore Logistics	£8 m	£12 m	£13 m
Health and Safety Inspections	£1 m	£1 m	£1 m
Seabed Lease	£17 m	£17 m	£17 m
TNUoS Charges	£0 m	£106 m	£106 m
Operational Insurance	£0 m	£11 m	£12 m
Operations Centre and Support Staff	£12 m	£16 m	£18 m
Wind Turbine Maintenance and Service	£16 m	£23 m	£47 m
Balance of Plant Maintenance and Service	£11 m	£18 m	£21 m
Maintenance Vessels	£2 m	£3 m	£4 m
Maintenance Port	£1 m	£1 m	£1 m
Total	£73 m	£214 m	£247 m
Total (%)	30%	87%	100%

Applying turnover per employee and turnover/GVA ratios for the relevant sectors it was estimated that the Array’s direct annual economic impact could be £28 million GVA and 350 jobs in Scotland, and £63 million GVA and 590 years of employment in the UK (Table 6.15).

Table 6.15: PDE Option 3: Array Operation and Maintenance Direct Economic Impact, Scotland and the UK

Parameters	Scotland		UK
	GVA	Jobs	GVA	Jobs
Operational Training	£2 m	40	£2 m	40
Operational Onshore Logistics	£1 m	10	£1 m	10
Operational Offshore Logistics	£2 m	20	£3 m	30
Health and Safety Inspections	<£1 m	0	<£1 m	0
Seabed Lease	£10 m	100	£10 m	100
TNUoS Charges	£0 m	0	£22 m	110
Operational Insurance	£0 m	0	£4 m	10
Operations Centre and Support Staff	£3 m	30	£3 m	40
Wind Turbine Maintenance and Service	£5 m	60	£7 m	80
Balance of Plant Maintenance and Service	£4 m	70	£8 m	120
Maintenance Vessels	£1 m	10	£2 m	20
Maintenance Port	<£1 m	0	<£1 m	0
Total	£28 m	350	£63 m	590

Applying GVA and employment multipliers it was therefore estimated that the Array’s annual economic impact could be £48 million GVA and 560 jobs in Scotland, and £191 million GVA and 1,650 years of employment in the UK (Table 6.16) (Table 6.17).

Table 6.16: PDE Option 3: Array Operation and Maintenance GVA impact, Scotland and the UK

Parameters	Scotland	UK
Direct GVA	£28 m	£63 m
Indirect GVA	£11 m	£84 m
Induced GVA	£8 m	£45 m
Total GVA	£48 m	£191 m

Table 6.17: PDE Option 3: Array Operation and Maintenance Employment impact, Scotland and the UK

Parameters	Scotland	UK
Direct Employment	350	590
Indirect Employment	150	800
Induced Employment	60	260
Total Employment	560	1,650

The spend at the primary operation and maintenance port(s) is expected to be around £25 million, directly employing 80 people (Table 6.18).

Table 6.18: PDE Option 3: Array Operation and Maintenance Port Impact by Category

Parameters	Total Investment	Port Spend	Employment
Operational Offshore Logistics	£13 m	£6 m	20
Operations Centre and Support Staff	£18 m	£12 m	30
Wind Turbine Maintenance and Service	£47 m	£5 m	20
Balance of Plant Maintenance and Service	£21 m	£2 m	10
Maintenance Port	£1 m	£1 m	0
Total	£100 m	£25 m	80

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