Scotland’s renewable energy industry supported an estimated 49,200 full-time equivalent (FTE) jobs and generated £14.9 billion in economic output in 2024, according to new research.
The independent report by the University of Strathclyde’s Fraser of Allander Institute, commissioned by Scottish Renewables, said the industry also supported £5.1 billion in gross value added (GVA).
Scottish Renewables added that the findings reinforced its call for the UK Government to remove barriers to investment and put renewable energy at the heart of its economic growth and industrialisation plans.
Offshore wind supported the most employment of any renewable energy technology in 2024, accounting for an estimated 18,800 FTE jobs across Scotland.
Onshore wind supported 17,825 FTE jobs, followed by hydropower with 4,100 and renewable heat with 3,025.
The report highlighted several major developments during 2023-24, including the opening of South Kyle Wind Farm in 2023, which generated £44 million in local spending and is expected to deliver £38 million in lifetime community benefits.
Seagreen, Scotland’s largest offshore wind farm, became fully operational in 2023, with the £3 billion project supporting around 80 direct jobs at Montrose Port.
Port of Montrose Image: Scottish Offshore Wind Ports Alliance
Sumitomo Electric began construction of a £350 million subsea cable factory at Nigg in 2024, which is expected to support around 250 direct jobs.
Coire Glas also completed £100 million of exploratory works in 2024 and, if built, would become the UK’s first major pumped storage hydro scheme in more than 40 years.
The industry’s economic contribution extends across construction, manufacturing, professional services and local businesses, with the figures capturing activity within the sector, its supply chains and spending by workers.
Angela Hepworth Image: Scottish Renewables
Scottish Renewables chief executive Angela Hepworth said:
“Scotland’s renewable energy industry is a major engine of economic growth, supporting nearly 50,000 jobs and generating almost £15 billion of output. From construction to operation and maintenance, it supports businesses, livelihoods and communities across the country.
“With much of the energy transition funded by private investment, both governments need to give businesses confidence to commit.”
“The UK Government must back Scotland’s pipeline in its strategic energy plans and ensure projects can compete in future auctions, while the Scottish Government must speed up planning decisions.”
Stuart McIntyre Images: University of Strathclyde
University of Strathclyde Professor of Economics and Head of the Economics Department Stuart McIntyre said:
“This latest report highlights that Scotland’s renewable energy sector contributes much more than the energy it generates. Its economic impact extends across a wide range of industries, supporting jobs, businesses and supply chains throughout the country.
“Improving the availability of Scotland-specific data will be essential to understanding the sector’s contribution and ensuring that future policy and investment decisions are informed by robust evidence.”
The report covers 2023 and 2024, combining Office for National Statistics survey data with a model of the Scottish economy because renewable energy is not separately identified in the National Accounts.
The findings represent the industry’s economic contribution in each year rather than year-on-year growth, while survey uncertainty, revisions to official data and an updated economic model mean the results should not be compared directly with previous editions.