The Future Economic Potential of Tidal Stream and Wave Energy in Scotland report - published on February 3rd, 2025, by the University of Edinburgh (UoE) and commissioned by Scottish Enterprise (SE) and Wave Energy Scotland (WES) - reveals the size of the potential economic prize for Scotland if the correct steps are taken to ensure it remains the world-leading destination for developing marine energy.
Findings include the potential for tidal stream and wave energy projects in the UK to deliver more than £8bn in economic benefits to the Scottish economy by 2050 if we retain our leadership position until then, supporting more than 15,000 jobs, including high-value employment in coastal communities and the Highlands and Islands.
It presents a scenario where there is an estimated Scottish market for up to 8.8GW of marine energy by 2050, with potential deployments of up to 12.6GW throughout the UK and up to 300GW globally. The report states this could deliver up to 62,000 jobs in Scottish companies in 2050, comprised of 15,600 jobs in the UK, plus a further 46,000 jobs from worldwide exports. The global export market for marine energy over the same timeframe could be worth as much as £28bn to Scotland's economy.
The report - authored by The Policy and Innovation Group, part of the Institute for Energy Systems at UoE - combines the findings of separate reports on tidal stream and wave energy commissioned by SE and WES respectively.
Scotland already has significant advantages in marine, including abundant natural resources, enterprise agencies such as SE and Highlands and Islands Enterprise (HIE) with expertise in supporting and growing the sector, and a decade of WES investment in wave energy and subcomponents with £50m awarded across 132 contracts. It is also home to the European Marine Energy Centre (EMEC), the world's first and leading facility for demonstrating and testing wave and tidal energy converters for the last 20 years.
The report highlights these advantages but emphasises that there is work to be done between now and 2050 if we are to retain that lead and reap the economic rewards. It recommends further investment in the supply chain, ongoing market support for marine companies, continued investment in existing innovation support organisations and further development of essential infrastructure (such as the grid) as key areas of focus for policy makers, to ensure Scotland remains the global location of choice for marine developers.
Additionally, supporting the sector will help advance Scotland's just transition and net zero goals as well as strengthening UK energy security. Key opportunities for the supply chain include areas where Scotland is currently in line with or ahead of the market, such as development and testing of devices; installation, operations and maintenance; device manufacture and subsystem integration.
Suzanne Sosna, Director of Energy Transition at Scottish Enterprise, said: "These findings really drive home the need to take action now if we want to reap the potentially sizeable economic benefits of remaining a world leader in marine energy. Scotland already has advantages such as abundant natural resources, innovative companies and decades of energy, maritime and subsea expertise.
"Marine energy has so far benefitted from strong public sector support and is now poised for commercialisation, so there's never been a better time to help companies scale up their offering. It's fitting that this report comes almost exactly a year after we launched our new focus on economic transformation,as it clearly demonstrates our commitment to the mission of creating an internationally competitive renewable energy industry in Scotland."
Tim Hurst, Managing Director of Wave Energy Scotland, said: "Wave Energy Scotland has been fundamental in supporting ongoing innovation in the sector and bringing technologies to the cusp of commercialisation. This report clearly demonstrates the huge economic and societal benefits of continuing Scotland's commitment and investment in marine energy to ensure it remains a global leader - using our natural resources for national benefit. It also highlights the incredible synergies with other energy sectors, such as offshore wind, allowing for sharing of infrastructure and skills into the future."
Professor Henry Jeffrey, Chair of Renewable Energy Technology and Policy Innovation at the University of Edinburgh, said: "This report clearly outlines not only the significant potential deployments of tidal stream and wave energy devices in Scottish waters and their role in helping to achieve our net zero targets, but also highlights the associated economic benefits and jobs that will provide a meaningful contribution towards the just transition.
"Of course these very significant benefits only come with strong targeted policy intervention. These outcomes will not be achieved through a business-as-usual approach. Rather, it will require a rapid shift to an enhanced and visible market pull policy, combined with sustained innovation support mechanisms that equally target Scottish technology developers and their domestic supply chains."
Acting Energy Secretary Gillian Martin said: "This report makes clear the scale of the economic opportunity for Scotland presented by marine energy.
"Scotland is already home to the world's largest and most powerful operational tidal stream projects and has been a frontrunner in wave energy development for the last two decades - and this, coupled with our abundant natural resources, expertise and forward-looking policy approach - means our country is ideally-placed to harness the enormous global market for marine energy whilst helping deliver our net zero economy.
"The Scottish Government welcomes the opportunity for marine energy to support Scotland's transition to a sustainable and resilient energy future."
Alistair Carmichael, MP for Orkney and Shetland and Chair of the all-party parliamentary group for marine energy, added: "This report confirms what islanders have known for some time: that tidal stream and wave energy have the potential to provide quality jobs and growth across the UK, and in coastal communities in particular.
"It is clearer than ever that the UK has a golden opportunity to lead the way in this industry of the future - all that is needed is for the government to grasp that opportunity by fully backing the sector. Other countries are waking up to the potential of marine renewables so now is not the time to let go of our advantage here."
Download the report here.
The results and recommendations presented are a summary of two separate studies conducted for Scottish Enterprise and Wave Energy Scotland.
The study procured by Wave Energy Scotland focused on quantifying the potential economic benefits arising solely from the development and deployment of wave energy in Scotland, something which is unique compared to previous investigations. It sought to identify these potential benefits in terms of gross value added (GVA), jobs supported, as well as considering the supply chain competitiveness and volume capacity.
Find out more information on this study here.
