Energy / Energy transition researchers return
RESEARCHERS from the University of Strathclyde are back in Shetland to look at the economic effects of declining oil and gas activity and the impact a new ultra-deep water quay in Lerwick could have.
It forms part of the Ocean REFuel project, which is looking at economic implications of the energy transition on the islands.
Researchers from the university’s Centre for Energy Policy have been in Shetland for the last few days to engage with those with an interest in the energy transition.
One strand being investigated is the economic effects of declining oil and gas activity, and how this may free up workers for the many green projects currently in the development pipeline.
The team said they are particularly interested in how the timing of these projects will influence the ability to maximise local employment.
A research insight brief said the introduction of new green projects could “exacerbate Shetland’s existing shortages of skills and workers”.
“On the other hand, over time, there needs to be a substantial ramp-up in green economy activities to absorb the work capacity being freed up by the decline in oil and gas,” it added.
They are also looking at the impact a new ultra-deep water quay at Dales Voe could have in supporting the Shetland economy.
Early research says income generation from the project is expected to peak at an additional £2.4 million in 2034, when offshore wind and decommissioning activity at the site is expected to be highest, before stabilising to around £800,000 a year.
It warns that the development and the supply chain demands could create competition for labour between sectors, potentially driving up wages.
The quay project, which has been financially backed by Highlands and Islands Enterprise to the tune of nearly £1.2 million, would expand the range of decommissioning and renewable projects which could come to Dales Voe.
Professor Karen Turner, who is the director of the Centre for Energy Policy, said: “Understanding how Shetland’s workforce, infrastructure and local supply chains can adapt to the transition from oil and gas is crucial.
“The success of planned green energy projects depends on ensuring not only that the right skills and freed-up capacity are available at the right times, but that the wider community shares in the benefits in a range of ways, now and going forward.”
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