4.2. Operation and Maintenance
4.2.1. 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 1 the annual operation and maintenance expenditure could be £276 million, of which £87 million (31%) could be secured in Scotland and £237 million in the UK (86%) as shown in Table 4.10.
Table 4.10: PDE Option 1: 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 | £13 m | £13 m |
Operations Centre and Support Staff | £14 m | £18 m | £18 m |
Wind Turbine Maintenance and Service | £23 m | £33 m | £67 m |
Balance of Plant Maintenance and Service | £14 m | £24 m | £28 m |
Maintenance Vessels | £2 m | £5 m | £5 m |
Maintenance Port | £1 m | £1 m | £1 m |
Total | £87 m | £237 m | £276 m |
Percentage of total expenditure (%) | 31% | 86% | 100% |
- Applying turnover per employee and turnover/GVA ratios for the relevant sectors it was estimated that Ossian’s direct annual economic impact could be £33 million GVA and 410 jobs in Scotland, and £71 million GVA and 680 jobs in the UK (Table 4.11).
Table 4.11: PDE Option 1: 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 | £5 m | 20 |
Operations Centre and Support Staff | £3 m | 30 | £4 m | 40 |
Wind Turbine Maintenance and Service | £7 m | 80 | £10 m | 120 |
Balance of Plant Maintenance and Service | £6 m | 100 | £10 m | 160 |
Maintenance Vessels | £1 m | 20 | £3 m | 40 |
Maintenance Port | <£1 m | 10 | <£1 m | 10 |
Total | £33 m | 410 | £71 m | 680 |
- Applying GVA and employment multipliers it was therefore estimated that Ossian’s annual economic impact could be £55 million GVA and 660 jobs in Scotland, and £212 million GVA and 1,910 jobs in the UK (Table 4.12) (Table 4.13).
Table 4.12: PDE Option 1: Ossian Operation and Maintenance GVA impact, Scotland and the UK
Parameters | Scotland | UK |
|---|---|---|
Direct GVA | £33 m | £71 m |
Indirect GVA | £13 m | £91 m |
Induced GVA | £10 m | £51 m |
Total GVA | £55 m | £212 m |
Table 4.13: PDE Option 1: Ossian Operation and Maintenance Employment impact, Scotland and the UK
Parameters | Scotland | UK |
|---|---|---|
Direct Employment | 410 | 680 |
Indirect Employment | 180 | 900 |
Induced Employment | 80 | 330 |
Total Employment | 660 | 1,910 |
4.2.2. Array Impact
- For the Array it was estimated that the annual spend could be £276 million, of which £84 million (30%) could be secured in Scotland and £232 million (84%) could be secured in the UK (Table 4.14).
Table 4.14: PDE Option 1: 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 | £12 m | £13 m |
Operations Centre and Support Staff | £12 m | £16 m | £18 m |
Wind Turbine Maintenance and Service | £23 m | £33 m | £67 m |
Balance of Plant Maintenance and Service | £14 m | £24 m | £28 m |
Maintenance Vessels | £2 m | £4 m | £5 m |
Maintenance Port | £1 m | £1 m | £1 m |
Total | £84 m | £232 m | £276 m |
Percentage of total expenditure (%) | 30% | 84% | 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 £32 million GVA and 400 jobs in Scotland, and £69 million GVA and 670 jobs in the UK (Table 4.15).
Table 4.15: 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 | 20 |
Operations Centre and Support Staff | £3 m | 30 | £3 m | 40 |
Wind Turbine Maintenance and Service | £7 m | 80 | £10 m | 120 |
Balance of Plant Maintenance and Service | £6 m | 100 | £10 m | 160 |
Maintenance Vessels | £1 m | 20 | £2 m | 30 |
Maintenance Port | <£1 m | 10 | <£1 m | 10 |
Total | £32 m | 400 | £69 m | 670 |
- Applying GVA and employment multipliers it was therefore estimated that the Array’s annual economic impact could be £54 million GVA and 650 jobs in Scotland, and £208 million GVA and 1,880 jobs in the UK (Table 4.16) (Table 4.17).
Table 4.16: PDE Option 1: Array Operation and Maintenance GVA impact, Scotland and the UK
Parameters | Scotland | UK |
|---|---|---|
Direct GVA | £32 m | £69 m |
Indirect GVA | £13 m | £90 m |
Induced GVA | £9 m | £49 m |
Total GVA | £54 m | £208 m |
Table 4.17: PDE Option 1: Array Operation and Maintenance Employment impact, Scotland and the UK
Parameters | Scotland | UK |
|---|---|---|
Direct Employment | 400 | 670 |
Indirect Employment | 180 | 890 |
Induced Employment | 70 | 320 |
Total Employment | 650 | 1,880 |
- The spend at the primary operation and maintenance port(s) is expected to be around £28 million, directly employing 100 people (Table 4.18).
Table 4.18: PDE Option 1: 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 | £67 m | £7 m | 20 |
Balance of Plant Maintenance and Service | £28 m | £3 m | 20 |
Maintenance Port | £1 m | £1 m | 10 |
Total | £126 m | £28 m | 100 |