Scotland’s energy future under a Labour government
By Jamee Kirkpatrick, Energy and Industrials
Scotland’s energy landscape is evolving fast under Labour’s new government. Discover the key policies and announcements shaping the future of renewables and the oil and gas sector, before delving into the opportunities it presents for energy companies to rethink their communications strategy.
The election this summer and subsequent change in government could mark a pivotal moment for Scotland’s energy landscape. This transition brings both challenges and opportunities for energy companies and, by extension, the marketing and communications strategies that support them.
Understanding Labour’s energy vision
Labour’s recent election victory has set the stage for significant changes in Scotland’s energy industry, particularly as the UK accelerates its transition to renewable energy. Since the party took power, Ofgem has approved the largest single investment in the UK’s electricity grid, paving the way for a new “superhighway” in the form of a subsea cable connecting Peterhead and Lincolnshire. And, just this week, the results of the sixth Contracts for Difference (CfD) renewable auction saw a major U-turn on last year, securing more than double the capacity of 2023’s auction thanks to a significant increase in budget under the Labour government.
This forms part of a broader strategy to support the integration of 21 GW of additional offshore wind capacity and other renewables, including onshore wind and solar. A strategy that will be spearheaded by GB Energy, which, the BBC has reported will be headquartered in the home of Scotland’s energy sector: Aberdeen.
Labour has pledged not to revoke existing offshore oil and gas licenses in the North Sea, but has committed to not issuing any new licenses, signalling a gradual shift away from fossil fuels. Yet, recently announced changes to the Energy Profits Levy (EPL) – the windfall tax – have left question marks over job security and unease across the oil and gas sector.
And it is also not yet clear what Labour will do to support the decommissioning sector. What can be said though is that both the Scottish and UK governments are backing carbon capture and storage (CCS) and hydrogen.
In early August, the Scottish government granted the Acorn project £2m in funding and in its manifesto, Labour stated that it planned to invest £7.3 billion on priority low-carbon industries, with £1.8 billion earmarked for decarbonising ports, £1 billion for carbon capture and £500 million for green hydrogen. As a result, Scotland can likely expect to see significant investment from the UK government.
The opportunity for marketing and communications
With Labour’s pledge to achieve 100% clean power by 2030 – five years ahead of previous targets – the urgency for action is clear. With ambitious plans to quadruple offshore wind capacity to 60 GW, triple solar capacity to 32 GW and double onshore wind capacity to 30 GW across the UK, Scotland can and should be at the heart of this energy transition.
This shift presents a dual challenge and opportunity for marketing and communications professionals, who must adapt their strategies to ensure their brands remain relevant and competitive in this evolving environment.
As with any time of significant change, there is the potential for a shake-up. It is likely that we will see new businesses and ideas coming to the fore, and, as a result, brand relevance must shift to the top of many marketing and communications functions agenda. Where legacy businesses have thrived, now they may face a struggle to survive in a clouded and saturated market.
While not every brand will need a complete overhaul, businesses will need to a pragmatic approach to stay relevant. From brand strategy and visual identity, to clear, concise messaging and a strategic multi-channel communications approach to take that brand to market, businesses must ensure they are equipped to meet the expectations of their industry and audience.
With the ever growing importance on the energy transition, companies operating across the value chain must navigate the balance between conventional and renewable energy carefully and avoid the risks of being sidelined or accused of greenwashing. Our in-house, multi-disciplinary support, rooted in energy and industrials sector experience, helps companies do just that.
The new political landscape presents a unique opportunity for energy companies to redefine their narratives and strengthen their market positions. Although the full implications of government policy remain speculative in some cases, the election marked the beginning of a promising new chapter for the future of Scotland’s energy industry.
At Aspectus Group, we are committed to guiding our clients through change with strategic, insightful and innovative marketing and communications solutions. By staying informed, adaptable and proactive, we can turn potential challenges into opportunities for growth.
Key takeaways
- What is Labour’s energy strategy for Scotland?
Labour aims to accelerate Scotland’s shift to renewable energy, pledging to achieve 100% clean power by 2030 and committing to major investments in offshore wind, solar, and green hydrogen. - What are the challenges and opportunities for energy companies?
The energy transition will challenge existing businesses to remain relevant while creating opportunities for new companies. Effective communication strategies and clear messaging will be vital to navigating this shift. - How can marketing help energy companies adapt?
By refining their brand messaging and adopting a clear multi-channel approach, companies can stay competitive and avoid pitfalls that come with change.
Author Bio
Jamee Kirkpatrick is a senior account director in our energy and industrials practice, who supports companies from start-ups to global players. Through her proactive, multi-channel approach she helps companies build their brands, tell their stories and drive business outcomes. Based in Aberdeen, Jamee works with clients in the oil and gas, renewable, utilities and technology space.
