7.2. Operation and Maintenance

7.2.1. 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 4 the annual operation and maintenance expenditure could be £227 million, of which £68 million (30%) could be secured in Scotland and £207 million in the UK (91%). This is shown in Table 7.10.

Table 7.10: PDE Option 4: 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	£11 m	£16 m	£33 m
Balance of Plant Maintenance and Service	£8 m	£14 m	£17 m
Maintenance Vessels	£1 m	£3 m	£3 m
Maintenance Port	£1 m	£1 m	£1 m
Total	£68 m	£207 m	£227 m
Total (%)	30%	91%	100%

Applying GVA and employment ratios it was therefore estimated that the Array’s direct annual economic could be £26 million GVA and 320 jobs in Scotland, and £60 million GVA and 540 years of employment in the UK (Table 7.11).

Table 7.11: PDE Option 4: 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	£3 m	40	£5 m	60
Balance of Plant Maintenance and Service	£4 m	60	£6 m	100
Maintenance Vessels	£1 m	10	£2 m	20
Maintenance Port	<£1 m	0	<£1 m	0
Total	£26 m	320	£60 m	540

Applying GVA and employment multipliers it was therefore estimated that the Array’s annual economic impact could be £44 million GVA and 500 jobs in Scotland, and £183 million GVA and 1,510 years of employment in the UK(Table 7.12; Table 7.13).

Table 7.12: PDE Option 4: Ossian Operation and Maintenance GVA impact, Scotland and the UK

Parameters	Scotland	UK
Direct GVA	£26 m	£60 m
Indirect GVA	£10 m	£81 m
Induced GVA	£8 m	£42 m
Total GVA	£44 m	£183 m

Table 7.13: PDE Option 4: Ossian Operation and Maintenance Employment impact, Scotland and the UK

Parameters	Scotland	UK
Direct Employment	320	540
Indirect Employment	140	750
Induced Employment	50	220
Total Employment	500	1,510

7.2.2. Array Impact

For the Array it was estimated that the annual spend could be £227 million, of which £65 million (29%) could be secured in Scotland and £202 million (89%) could be secured in the UK (Table 7.14).

Table 7.14: PDE Option 4: 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	£11 m	£16 m	£33 m
Balance of Plant Maintenance and Service	£8 m	£14 m	£17 m
Maintenance Vessels	£1 m	£3 m	£3 m
Maintenance Port	<£1 m	<£1 m	£1 m
Total	£65 m	£202 m	£227 m
Total (%)	29%	89%	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 £26 million GVA and 310 jobs in Scotland, and £58 million GVA and 530 years of employment in the UK (Table 7.15).

Table 7.15: PDE Option 4: 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	£3 m	40	£5 m	60
Balance of Plant Maintenance and Service	£4 m	60	£6 m	100
Maintenance Vessels	£1 m	10	£1 m	20
Maintenance Port	<£1 m	0	<£1 m	0
Total	£26 m	310	£58 m	530

Applying GVA and employment multipliers it was therefore estimated that the Array’s annual economic impact could be £43 million GVA and 490 jobs in Scotland, and £179 million GVA and 1,480 years of employment in the UK (Table 7.16; Table 7.17).

Table 7.16: PDE Option 4: Array Operation and Maintenance GVA impact, Scotland and the UK

Parameters	Scotland	UK
Direct GVA	£26 m	£58 m
Indirect GVA	£10 m	£80 m
Induced GVA	£7 m	£41 m
Total GVA	£43 m	£179 m

Table 7.17: PDE Option 4: Array Operation and Maintenance Employment impact, Scotland and the UK

Parameters	Scotland	UK
Direct Employment	310	530
Indirect Employment	130	750
Induced Employment	50	210
Total Employment	490	1,480

The spend at the primary operation and maintenance port(s) is expected to be around £23 million, directly employing 70 people (Table 7.18).

Table 7.18: PDE Option 4: 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	£33 m	£3 m	10
Balance of Plant Maintenance and Service	£17 m	£2 m	10
Maintenance Port	£1 m	<£1 m	0
Total	£81 m	£23 m	70

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