South Kyle Wind Farm Supplier Analysis

Vattenfall takes the economic development potential of its projects seriously. It has invested in understanding how these projects drive economic impact and what additional measures could be implemented to increase this impact further.

We were commissioned to assess the impact that South Kyle Wind Farm is having on the local and Scottish economies by analysing the supply chain spend and engaging with the Tier 1 contractors. The findings of this study will be used to ensure the other Vattenfall wind energy proposals in the area can have the greatest feasible economic impact.

South Kyle Wind Farm

South Kyle Wind Farm is based in based near the border of East Ayrshire and Dumfries and Galloway. It consists of 50 turbines, with a total installed capacity of 240MW. The project has been in development for ten years. The construction began in 2020 and the site will be completed in 2022

In addition to South Kyle Wind Farm, Vattenfall also has proposals for two more wind farms in South West Scotland:

• Quantans Hill Wind Farm; and
• Whiteneuk Wind Farm.

We used the findings of the South Kyle Supplier Analysis to inform the EIA assessments of the other two proposals for the area to maximise the credibility of the figures presented.

Impact of South Kyle Wind Farm

Our analysis of the supply chain expenditure, both to date and projected, found that in total £93 million of the capital expenditure will be spent within Scotland. Of this, £44 million will be spent within South West Scotland.

This will support a total of 1,290 years of employment in Scotland and 560 years of employment. This is spread throughout the development and construction period. During the periods of peak construction activity, it is expected that the South Kyle Wind Farm will support 720 jobs in Scotland, of which 270 jobs will be in South West Scotland. This includes those directly employed on the site, their suppliers and the induced impacts of the staff spending their salaries in the wider economy.

Sources of Impact

The majority of the spend and economic opportunity in Scotland comes from the balance of plant, engineering works that are required to get the site ready for the turbines to be installed. Vattenfall contracted the Scottish Civil Engineering company, RJ McLeod, to lead the civil engineering works. RJ McLeod has a strong track record in maximising the use of local contractors on onshore wind projects and was able to procure a significant proportion of their supplies and subcontractors from South West Scotland. This included plant hire, accommodation and, most importantly, bacon rolls.

The primary turbine supplier for South Kyle Wind Farm is Nordex, which as with all turbine suppliers, is based outside of Scotland. At the time of construction, there were no major turbine components (such as nacelles, blades or towers) that were manufactured in Scotland. However, opportunities exist for Scottish companies to provide services to the primary turbine supplier and these are worth millions of pounds and can have a real economic impact. This includes major, such as that with the Port of Ayr and with the specialist haulage companies which will transport the 150 blades, and other elements, between the port and the site.

Vattenfall and Nordex worked together to maximise the potential opportunities available in other aspects of the turbine installation and commissioning. This included launching a drive to find a local contractor to complete the medium voltage electrical installation works. Tenders were invited from electrical contractors but no specific onshore wind previous experience was necessary. This approach, to proactively engaging and signposting diversification opportunities for local contractors is an example of best practice in maximising local economic benefits.

Next Steps

BiGGAR Economics provided Vattenfall with a series of recommendations for increasing the economic impact of its developments, based on its experience with South Kyle Wind Farm. Vattenfall will take these into consideration for future projects and hopefully continue setting best practice in local economic impacts.

If you an interested in analysing recent project experience to improve the economic impact of your future projects and enhance the credibility of your planning applications please get in touch.

Further Reading

• Vattenfall Press Release – Link