Scotland is often celebrated for its leadership in renewable energy, with abundant wind, hydro, solar, and fossil fuel resources powering the country. However, looking closely at who controls these assets, it becomes clear that Scotland does not have full sovereignty over its power generation. Foreign or multinational corporations own most of its renewable energy projects, limiting Scotland’s control over its future energy.
Multinational Ownership: The Case of SSE Renewables
SSE Renewables operates some of Scotland’s most significant renewable projects, like the Beatrice Offshore Wind Farm (588MW) and Stronelairg Onshore Wind Farm (228MW project). Despite significantly contributing to Scotland’s energy grid, SSE Renewables is primarily controlled by SSE plc, a UK-wide corporation with no exclusive ties to Scotland. Furthermore, Greencoat UK Wind PLC and other institutional investors hold significant shares in the company, meaning that control over Scottish energy is fragmented across non-Scottish entities.
Foreign Control: EDF Renewables
EDF Renewables, a French energy giant EDF Group subsidiary, operates several large-scale projects in Scotland, including the Neart na Gaoithe (NNG) Offshore Wind Farm (450 MW) and Dorenell Wind Farm (177 MW). However, since EDF Renewables is 100% owned by a French company, Scotland does not retain full control over these energy assets. The profits and strategic decisions ultimately benefit France, not Scotland.
Vattenfall’s Swedish Ownership
Similarly, Vattenfall, a Swedish state-owned company, controls several key Scottish projects, such as the European Offshore Wind Deployment Centre (EOWDC) and the Clashindarroch II Wind Farm. Though these projects generate power on Scottish soil, they are under foreign ownership, with the profits and decision-making tied to Sweden’s government, not Scotland’s.
ScottishPower: A Subsidiary of Spanish Iberdrola
Even ScottishPower, a name often associated with local energy production, is not fully Scottish-owned. The company is a subsidiary of the Spanish energy giant Iberdrola, whose shareholders include foreign entities like the Qatar Investment Authority and BlackRock. This means that while ScottishPower operates large renewable projects like Whitelee Wind Farm (539 MW), control and profits are directed abroad.
Equinor: Norway’s Energy Giant
Equinor, a Norwegian state-owned company, is also a key player in Scotland’s energy landscape. Their Hywind Scotland floating wind farm and other projects have been pivotal in Scotland’s offshore energy production. However, as with other foreign entities, control over these resources lies with Norway, not Scotland.
Why Scotland Needs Full Sovereignty Over Its Power Generation
Scotland’s economic and political future must gain complete control over its renewable energy sector. Energy is one of the most strategic assets a country can possess, and being reliant on foreign corporations for the management and profits of this resource limits Scotland’s autonomy in several ways:
Economic Benefits: Much of the revenue generated by Scotland’s renewable energy projects flows to shareholders and parent companies based outside Scotland. Full sovereignty would allow Scotland to reinvest profits locally, supporting infrastructure, public services, and jobs.
Energy Security: As the world faces growing energy demands and economic and political uncertainties, having full control over power generation is essential for energy security. With reliable energy sources, modern life becomes attainable. A balanced energy strategy that includes fossil fuels can provide the necessary reliability that renewables cannot guarantee. This is especially pertinent given the intermittent nature of wind and solar power.
Policy Control: As a Scottish party, Sovereignty wants to ensure that Scotland aligns its energy sector with national energy goals and policies, ensuring that projects are developed in line with Scotland’s needs and ambitions rather than being dictated by external corporate strategies. This would be particularly important if Scotland pursues independence, where complete control over energy production would be a pillar of national sovereignty.
Sustainable Growth: Complete ownership would empower Scotland to shape the future of its renewable energy sector by focusing on innovation, sustainable development, and local partnerships. This would boost Scotland’s global standing as a green energy leader, fostering long-term growth and stability.
The Role of Fossil Fuels in Scotland’s Energy Future
While renewables are vital for a sustainable future, it is essential to acknowledge the continued importance of fossil fuels. Modern economies rely heavily on fossil fuels for a wide range of applications beyond electricity generation. Approximately 6,000 everyday products, including plastics, derived from fossil fuels, which are crucial in various sectors such as technology and automotive. For instance, around 50% of electric cars are made of plastics derived from petrochemicals.
Moreover, fossil fuels remain essential for energy reliability. The UK has seen rising energy prices in regions with the highest renewable penetration, highlighting the economic challenges associated with an over-reliance on intermittent energy sources. With fossil fuels to provide backup during periods of low renewable output, energy security could be protected.
Britain is a net oil importer, and abandoning domestic fossil fuel resources could increase dependence on foreign supplies, potentially compromising energy security. In the current geopolitical climate, reliance on imported energy can leave Scotland vulnerable to external pressures.
Revenue from Scottish oil and gas production could be crucial in financing a newly independent Scotland, ensuring economic resilience while transitioning to a more sustainable energy system.
Scotland’s Power and Energy Sources, but Not Scotland’s Ownership
While Scotland is making incredible strides in renewable energy, the majority of its energy assets are owned by foreign and multinational corporations. As a result, Scotland remains limited in its ability to benefit fully from its natural resources.
For Scotland to truly achieve energy independence, it must pursue greater ownership and control over its renewable energy sector. This shift, while recognizing the continued importance of fossil fuels, would secure significant economic, environmental, and political benefits. These benefits are vital to Scotland’s future as a leader in sustainable energy. The quest for sovereignty over power generation is not just a technical or economic goal—it’s a matter of national resilience and self-determination, a step closer towards true Scottish independence.
Caveat: Fluctuating Ownership and Investment Numbers
It is important to note that some ownership percentages and project details mentioned here were extracted a years ago. Since then, ownership stakes may have fluctuated due to changes in corporate investments, mergers, or new partnerships. Therefore, while the overarching structure of foreign and multinational control remains consistent, specific figures might vary. However, the overall argument about the lack of Scottish ownership in its energy infrastructure holds true.
Bedig Avakian is Sovereignty’s Head of Digital, and a Member of the NEC.