5.2. Operation and Maintenance

5.2.1. 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 2 the annual operation and maintenance expenditure could be £259 million, of which £80 million (31%) could be secured in Scotland and £226 million in the UK (87%). This is shown in Table 5.10.

Table 5.10: PDE Option 2: 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	£19 m	£27 m	£55 m
Balance of Plant Maintenance and Service	£12 m	£20 m	£24 m
Maintenance Vessels	£2 m	£4 m	£4 m
Maintenance Port	£1 m	£1 m	£1 m
Total	£80 m	£226 m	£259 m
Total (%)	31%	87%	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 £31 million GVA and 370 jobs in Scotland, and £67 million GVA and 630 years of employment in the UK (Table 5.11).

Table 5.11: PDE Option 2: 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	£6 m	70	£8 m	100
Balance of Plant Maintenance and Service	£5 m	80	£9 m	140
Maintenance Vessels	£1 m	20	£2 m	30
Maintenance Port	<£1 m	10	<£1 m	10
Total	£31 m	370	£67 m	630

Applying GVA and employment multipliers it was therefore estimated that Ossian’s annual economic impact could be £51 million GVA and 610 jobs in Scotland, and £202 million GVA and 1,770 years of employment in the UK (Table 5.12; Table 5.13).

Table 5.12: PDE Option 2: Ossian Operation and Maintenance GVA impact, Scotland and the UK

Parameters	Scotland	UK
Direct GVA	£31 m	£67 m
Indirect GVA	£12 m	£87 m
Induced GVA	£9 m	£48 m
Total GVA	£51 m	£202 m

Table 5.13: PDE Option 2: Ossian Operation and Maintenance Employment impact, Scotland and the UK

Parameters	Scotland	UK
Direct Employment	370	630
Indirect Employment	170	850
Induced Employment	70	290
Total Employment	610	1,770

5.2.2. Array Impact

For the Array it was estimated that the annual spend could be £259 million, of which £78 million (30%) could be secured in Scotland and £221 million (86%) could be secured in the UK (Table 5.14).

Table 5.14: PDE Option 2: 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	£19 m	£27 m	£55 m
Balance of Plant Maintenance and Service	£12 m	£20 m	£24 m
Maintenance Vessels	£2 m	£4 m	£4 m
Maintenance Port	£1 m	£1 m	£1 m
Total	£78 m	£221 m	£259 m
Total (%)	30%	86%	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 £30 million GVA and 370 jobs in Scotland, and £65 million GVA and 620 years of employment in the UK (Table 5.15).

Table 5.15: PDE Option 2: 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	£6 m	70	£8 m	100
Balance of Plant Maintenance and Service	£5 m	80	£9 m	140
Maintenance Vessels	£1 m	10	£2 m	30
Maintenance Port	<£1 m	10	<£1 m	10
Total	£30 m	370	£65 m	620

Applying GVA and employment multipliers it was therefore estimated that the Array’s annual economic impact could be £50 million GVA and 590 jobs in Scotland, and £198 million GVA and 1,740 years of employment in the UK (Table 5.16; Table 5.17).

Table 5.16: PDE Option 2: Array Operation and Maintenance GVA impact, Scotland and the UK

Parameters	Scotland	UK
Direct GVA	£30 m	£65 m
Indirect GVA	£12 m	£86 m
Induced GVA	£9 m	£46 m
Total GVA	£50 m	£198 m

Table 5.17: PDE Option 2: Array Operation and Maintenance Employment impact, Scotland and the UK

Parameters	Scotland	UK
Direct Employment	370	620
Indirect Employment	160	840
Induced Employment	70	280
Total Employment	590	1,740

The spend at the primary operation and maintenance port(s) is expected to be around £27 million, directly employing 100 people (Table 5.18).

Table 5.18: PDE Option 2: Ossian 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	£55 m	£5 m	20
Balance of Plant Maintenance and Service	£24 m	£2 m	20
Maintenance Port	£1 m	£1 m	10
Total	£111 m	£27 m	100

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