Council / Hopes that new funding model will tackle ‘infrastructure deficit’ of the islands
A letter from the leaders of the three Scottish island groups says local infrastructure ‘has to keep up’ in the move towards offshore wind and renewables
THE SCOTTISH islands “cannot deliver Scotland’s energy ambitions without a massive investment in our infrastructure”, according to the leaders of the councils in Shetland, Orkney and the Western Isles.
The three leaders – Emma Macdonald, Heather Woodbridge and Paul Steele respectively – have written a joint letter after confirmation of an ‘accelerator’ funding model for the islands in the draft Scottish budget for 2026/27.
The letter, published by the Herald, raises the emergence of proposed offshore wind development around the islands – and how improvements in local infrastructure are the “bedrock of tangible local benefits for hosting renewable energy”.
While firmer details are relatively scant at this stage, the proposed new accelerator model promises to invest hundreds of millions of pounds in Scotland’s three island areas.
The government said this will fund “social and economic infrastructure” – with “fixed link enhancements” among the aims.
The letter highlights that Orkney, Shetland and the Western Isles “stand to benefit from a series of shared opportunities which have never been as aligned as they are today”.
It mentions industries like tourism and the cruise sector, as well as food/drink, environment and culture.
“However the industrial development which is the subject of more debate than perhaps any other, is offshore wind,” the letter said.
It added that around one-third of ScotWind, the first round of Scotland’s offshore wind leasing, is in the territorial waters of the islands – with enough capacity to power every home in Scotland three times over.
Locally, two offshore wind farms are planned to the east of Shetland with a combined totally capacity of 2.3GW.
The leaders’ letter says “many of the islanders we represent are highly sceptical – they see the costs and disruption of wind development but have trouble seeing the benefits”.
“Given that our islanders suffer from the highest energy bills anywhere in the country, their position is understandable,” it added.
“Local unease, and in many communities outright anger – is fuelled by the fact that our islands’ natural capital has already delivered hundreds of millions of pounds to the Scottish Government by way of the option fees paid by wind developers for the right to build in our waters.”
The letter said this is why the leaders of the three island groups have come together to form the ‘Islands Strategic Partnership’, which was created around six months ago to engage government.
The aim was to create “meaningful negotiation with the objective of securing an agreement which is both fair to our islanders and which also unlocks the islands’ ability to deliver clean, secure energy for ourselves and for the rest of the country”.
The leaders said negotiations with first minister John Swinney and other cabinet ministers were “extremely positive and productive”.
But they said there is a “critical paradox” at play – “Scotland’s energy ambitions cannot be achieved without the power of our islands, but our islands cannot deliver Scotland’s energy ambitions without a massive investment in our infrastructure”.
“Improvements in local infrastructure – transport links, harbours, digital coverage, housing, care settings and schools – are the foundation for industrial development and the bedrock of tangible local benefits for hosting renewable energy,” the leaders said.
While Swinney “recognises that we are capable of making a yet more significant contribution in energy, aquaculture, fisheries and tourism”, there is “much more work still to be done”, the letter said.
“Our partnership has already commenced post-budget discussions to agree the detail and timeline of these multi-year investments,” it continued.
“Our partnership will continue indefinitely, working with each other and with the Scottish Government on our twin aims of delivering both renewable energy and local benefits over the course of the Islands Accelerator Model.
“Between us and the first minister we have clearly established a recognition of what our islands can offer the wider economy.”
The letter adds that growth is increasingly moving away from urban centres, and “infrastructure has to keep up”.
However, the leaders point towards a “chronic housing shortage” as well as issues with existing stock.
“The solution seems easy – build more homes. But a home built on the islands today may have a market value of half the build cost tomorrow, making builders and financiers hard to attract. A solution is well outwith the financial constraints of a local authority.”
But the issue of ageing inter-island ferries – another problem felt locally – is also highlighted as a risk.
Concluding, the leaders said the accelerator model should allow the islands to “confront our unique structural challenges while enabling the Scottish Government to achieve its renewable energy ambitions”.
“Most importantly it sets us on a shared trajectory – ensuring that our energy transition is one that we take together, one that our islanders will genuinely benefit from.
“Scotland has an economic, social and moral obligation to maximise the potential of our renewable energy jackpot.
“Our islands want to be part of it, but our islanders need to see fairness and balance. Our opportunities are Scotland’s opportunities, but our infrastructure deficit is also Scotland’s infrastructure deficit.
“The Islands Accelerator Model is, we sincerely hope, the start of a new era. The growth and wealth we can create here on our islands, both for ourselves and for all of Scotland, is unrivalled anywhere else in our country.
“The job of the Islands Strategic Partnership and the Scottish Government is to work together to unlock it.”
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