Clean Energy In The Highlands And Islands – Encouraging Investment

The drive to net zero by 2045 in Scotland is currently a hot topic for discussion in articles, roadshows and reports. The Highlands and Islands has a major part to play in the transition from traditional oil and gas to renewable energy but, in order to play that part, it is essential that the region capitalises on the vast natural resources available to it. To achieve this, significant investment is required. At the Green Energy Conference held in Inverness earlier this year, there was much discussion around the race to secure opportunities that the Highlands and Islands is in. Is hesitation to invest a possible obstacle in that race?

Our report, “Evolution not revolution: Investing in the energy transition”, published by Brodies LLP in May 2026 found that investment is stepping up globally, with 82% of respondents planning to increase the value of their global energy transition infrastructure investments over the next two years. This demonstrates a clear appetite for investment and continued focus on the energy market. However, there needs to be increased forward thinking across all aspects of energy transition in order to encourage this. A lack of certainty remains a recurring theme in the conversations being held around clean energy - there are concerns around skills retention, policy and regulation, and availability of grid connections, amongst other things.

These concerns are addressed in the Brodies’ report in the wider context of the North East of Scotland, but with the abundant potential for clean energy development across the Highlands and Islands, they perhaps have a more significant impact:

• Skills retention – There have been significant job losses within the oil and gas industry over a sustained period of time, however the industry continues to support around 115,000-120,000 jobs across the UK, with around 66,000 based in Scotland. These figures represent individuals with significant, specialised capabilities, many of which are transferable and applicable to the wider energy mix. This, combined with the general Highland skills gap due to young people leaving the region, means that more has to be done to retain skilled workers and encourage more youth development at as early a stage as possible.
• Policy and regulation – Uncertainty in the regulatory framework has been part of the recent “stress test for energy transition investing in the UK” and continues to be considered one of the greatest challenges to investing in greenfield energy transition projects nationwide. Greater clarity on tax reliefs, incentive programmes and renewables business models for investment can help to clarify the opportunities that investing will bring.
• Availability of grid connections and transmission capacity – Many renewables projects, such as on and offshore wind and solar developments, require an available grid connection with sufficient capacity in order to be viable. Similarly, alternatives to gas, such as hydrogen, require upgrades to the gas transmission system. Although major upgrades to the grid and transmission system are both planned and ongoing across the country, the timing for completing these must align with the need to push development and obtain investment in the coming years.

There are undoubtedly challenges ahead in terms of securing investment for the development of the clean energy industry in the Highlands and Islands and more widely within Scotland and the UK, both in the long-term and the short-term. What is clear is that the appetite and intention are there in respect of investment in the energy transition, and there are plenty of opportunities across the Highlands and Islands to take advantage of that.