SNP Ministers Axe Wave Energy Funding, Putting £70 Million Investment at Risk
The Scottish Government's decision to withdraw funding from Wave Energy Scotland (WES) has sparked fears that over £70 million of public money could be wasted, potentially leading to the collapse of Scotland's entire marine energy industry. The funding cut, which takes immediate effect, leaves WES without financial support from March onwards, throwing its contractual commitments into chaos.
Wave Energy Scotland's Critical Role
Established by the Scottish Government in 2014, Wave Energy Scotland was created to advance the country's efforts to harness energy from the sea. Since its inception, ministers have invested more than £70 million into the organisation. However, key funding has now been abruptly terminated, with Cabinet Secretary for Climate Action and Energy Gillian Martin describing the decision as "regrettable" but necessary due to budget constraints.
"Sadly, this is an area that could not be prioritised in the forthcoming budget," Martin stated last week, acknowledging the difficult financial decisions facing the government.
Industry and Political Backlash
Opposition politicians and industry leaders have strongly criticised the funding withdrawal, warning that it threatens both jobs and Scotland's position in the global renewable energy market. Scottish Conservative energy spokesman Douglas Lumsden condemned the move, stating: "The SNP's decision to strip funding from this flagship firm will put jobs on the line and damage the economy."
Lumsden added: "Nationalist ministers talk about harnessing renewable energy, but this decision leaves plans to extract energy from the sea dead in the water. Over £70 million has been spent on Wave Energy Scotland - and it looks like taxpayers' cash has been poured down the drain once again by this financially incompetent SNP government."
Immediate Consequences for Companies
The funding cut has particularly severe implications for Mocean Energy, one of Scotland's flagship wave energy companies based in Edinburgh. Managing director Cameron McNatt has warned that the loss of contractually agreed funding "would likely put Mocean Energy out of business," resulting in the immediate loss of 13 direct jobs and jeopardising £2.1 million in near-term investment into Scottish businesses.
Nationalist MSP Michael Matheson told parliament's Net Zero, Energy and Transport Committee that Mocean Energy had indicated the funding withdrawal would likely force its closure. "What message does that cut send out about our ambition on marine energy in general, if we are quite literally pulling the plug on the key parts of trying to deliver wave energy?" Matheson questioned.
Broader Industry Impact
Mocean Energy has warned ministers that the real-world consequences of Holyrood's financial decision extend far beyond their own company. The marine energy industry, which has the potential to deliver £8 billion to the Scottish economy and create 15,000 jobs by 2050, now faces existential threats.
Maggie Olson-Jow, Policy Manager for Offshore and New Technologies at Scottish Renewables, emphasised that wave energy has the potential "to play an important role in the UK's future energy mix." However, she noted significant challenges: "While the wave energy contained in Scotland's seas is a vast and relatively untapped resource, the sector faces significant challenges in finding a route to market."
Olson-Jow added: "As an emerging technology with global potential, Scotland must maintain its backing for wave energy to support delivery at a commercial scale."
Government Response and Future Prospects
The Scottish Government confirmed it had "invested over £70 million in funding for marine energy since Wave Energy Scotland's inception in 2014." A government spokesman explained that the decision to reduce support was made "in the context of an agreement for the company being self-sustaining beyond a certain point" and due to "a challenging fiscal envelope and the need to make difficult decisions regarding spending in 2026/27 and beyond."
However, the spokesman acknowledged concerns about job losses, stating: "We recognise concerns regarding the loss of jobs at WES and the wider wave energy sector which is why we are working closely with WES, Highlands and Islands Enterprise and other partners to sustain operations while future alternative sources of funding are identified."
Highlands and Islands Enterprise confirmed it was working with WES and the Scottish Government on the matter but declined to comment further. The organisation faces the immediate challenge of finding alternative funding sources to prevent the collapse of Scotland's promising marine energy sector.
