Business / Shetland ‘punching above its weight’ as report outlines future development in Highlands and Islands
FUTURE development projects with a total investment value of £11.17bn are being planned in Shetland over the next 15 years, according to new research from Highlands and Islands Enterprise (HIE).
It is estimated these projects could support more than 1,100 jobs.
Across the Highland and Islands area the investment figure expands to more than £100 billion thanks to around 250 ‘regional transformational opportunities’ (RTO).
HIE area manager Katrina Wiseman said that Shetland is “punching above its weight” when it comes to future large developments.
Renewable energy projects, including offshore and onshore wind, as well as green hydrogen, account for around three quarters of the total RTO investment value in the Highlands and Islands.
Others relate to space, marine biotech, life sciences, natural capital and critical infrastructure developments such as electricity grid upgrades improvements to ports and harbours and research and creation of innovation facilities.
The SaxaVord Spaceport in Unst and plans for an ultra-deep water quay at Dales Voe in Lerwick were picked as two Shetland examples – but energy developments are planned too.
The new HIE report does not look at growth projects in other industries, such as tourism and food/drink, “many of which will have significant impact at a more local level”.
Nor does it feature other public sector investment in the likes of roads, schools and hospitals, all of which is in addition to the RTOs.
The study was commissioned by HIE in partnership with the Highlands and Islands Regional Economic Partnership (HIREP) and carried out by research consultants ekosgen.
It will be discussed at the Convention of the Highlands and Islands meeting taking place in Strathpeffer today (Monday).
The scale of opportunity is described in the report as “unprecedented” for the Highlands and Islands – and possibly even Scotland and much of the UK.
The so-called RTOs are largely private sector-driven with some public sector co-investment and extra investment through growth deals.
The findings of the report will be used to inform policies and planning.
Wiseman told Shetland News that although there are large projects on the horizon in the isles, there are challenges in areas such as housing, transport and labour.
“We’ve recognised for some time that the scale of economic opportunity from potential investments across the Highlands and Islands is significant,” she said.
“What this research does for the first time is actually quantify the huge positive impact that a range of transformational projects could have across the entire region.
“In Shetland, that equates to an investment of over £11 billion that could support 1,153 jobs through 19 major projects in sectors ranging from renewable energy to space.
“Bringing these projects to fruition won’t be easy and will require a lot of work from businesses and organisations across the public and private sectors, including addressing challenges with housing, transport and labour.
“However, with more than 11 per cent of the total investment and Lerwick ultra deep water port and SaxaVord Spaceport among the front runners, it’s fair to say that Shetland is punching above our weight.”
HIE chief executive Stuart Black said the Highlands and Islands will be the “engine room for growth for the Scottish economy in the years ahead”.
“We know there’s a lot to get right,” he added.
“Bringing these projects to fruition means addressing some serious challenges facing the region and a strong commitment to partnership.
“But the sheer scale of the potential prize from these efforts makes all that very worthwhile and that’s where our focus should be. The report will be crucial in informing decisions around things like planning and investment in order to realise as much of the potential benefits as possible.
“We must support businesses and communities to ensure these investments leave a long-term legacy. We also need to work together and with businesses, social enterprises and community groups to ensure the benefits are spread across the whole region.”
Deputy first minister Kate Forbes said: “The Scottish Government’s Programme for Government 2025 puts a clear focus on attracting investment as a key driver to creating jobs and growing our regional and national economies.
“The skills, talent and natural resources running across the Highlands and Islands are well known but this report sets out the true scale of the opportunities that lie ahead.
“The challenge now is to capitalise on this promise.”
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