Scottish ministers have been accused of being too slow to release a £500 million fund into renewables projects and having no clear plan beyond the end of the decade.
Audit Scotland said less than a third of the fund has so far been spent and is putting the supply chain at risk.
The Scottish Government set up the five-year Offshore Wind Investment Programme (OWIP) in 2023 to boost the building of port infrastructure and manufacturing facilities needed to support offshore wind projects.
Falling investor confidence and general regulatory issues have resulted in just £141m committed across 17 projects.
Audit Scotland said while the Scottish Government put in place a “collaborative investment approach” with its delivery partners to make the best use of public money, “this was significantly weakened after an early data breach” of commercially sensitive information in December 2024.
Wider governance issues, including funding, project monitoring and risk management have also hampered efficient delivery of the project, the report found.
While the plan remains broadly on track to achieve its aim of generating £3 in private investment for every public £1 spent, support has been grant-based rather than loans or equity in companies. This limits the potential to get money back while potentially increasing the cost to the taxpayer.
The largest private OWIP-supported investment is a £350m high-voltage subsea power cable manufacturing plant at the Port of Nigg in the Highlands. The plant was supported by £24.5m of public sector funding.
Stephen Boyle, Auditor General, said: “The Scottish Government’s project to stimulate investment in offshore wind infrastructure has made some progress, but it is slow going and there are clear risks to the programme. The Government must address these quickly.
“Strengthening the programme’s governance and delivery arrangements and developing a clear plan for the future will help reduce uncertainty for delivery partners and investors, and give the programme the best chance of being successful.”
Scottish Conservatives energy spokesman Liam Kerr said: “This stark report exposes that the SNP have again failed to back up a headline-grabbing announcement with concrete action.
“John Swinney and his ministers have staked a lot on renewables and offshore wind meeting Scotland’s energy needs, but only a fraction of this fund has been spent so far.”
Mr Kerr said it is “concerning” that independent auditors were unable to find “any evidence of what the SNP are planning to do in the years ahead”.
Energy minister Stephen Gethins said the project is “crucial” to supporting investment in the infrastructure “needed to realise Scotland’s offshore wind ambitions”.
He added: “I welcome Audit Scotland’s constructive recommendations on ways it can be strengthened. We have already implemented a number of these with our delivery partners, with work on the others actively under way.”
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