![\"Wind](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2018\/11\/Wind-farm-contrbuted.png\")
The Scottish Government needs to be more transparent about how it will use \u00a3755 million raised by leasing the seabed around the coastline for offshore wind projects.<\/p>\n
A report from Scotland\u2019s Auditor General Stephen Boyle says ministers had drawn down \u00a396m of the ScotWind funds so far and expected to spend a further \u00a3507m by 2031, but had not been clear about how the money will be used.<\/p>\n
The government had pledged to set up a \u201cScotWind wealth fund\u201d, but opposition parties accuse ministers of using it to plug gaps in Scotland\u2019s finances. <\/p>\n
Ministers have recognised the importance of providing clarity during the annual budget-setting process.<\/p>\n
The seabed around Scotland, owned by the monarch, is managed by Crown Estate Scotland, with the profits going to the Scottish government. It set up ScotWind in 2020 and in 2022 announced the first 17 winning bidders in an auction round.<\/p>\n
Later that year, three more areas were added. The money raised is a one-off payment, to be followed, in 10 years or so, by smaller annual leasing profits.<\/p>\n
Mr Boyle said: \u201cCrown Estate Scotland and the Scottish Government took a high risk and reward approach to the ScotWind leasing round. Whether that decision represents value for money will be determined in the coming years.<\/p>\n
\u201cIf developers sign long-term leases before their option periods end, then annual payments will continue to benefit Scotland for the next 60 years.<\/p>\n
\u201cHowever, if they give up their options the capped option pricing model will result in limited wider economic benefits and substantially reduced public revenues.<\/p>\n
\u201cWhat is now important is that the Scottish Government is much more transparent about their plans for how the ScotWind funds will be used across this parliamentary term and beyond.\u201d<\/p>\n
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