A £500 million plan by the Scottish Government to boost investment in offshore wind is at risk of failure, a watchdog has suggested.
Audit Scotland said the project is moving too slowly, with less than a third of cash spent so far.
Its report found clear risks that ministers may not achieve their aim of boosting the supply chain needed to support the industry.
The Auditor General said there is also “no clear plan” for the project beyond 2028/29.
The Government set up the five-year Offshore Wind Investment Programme in 2023 with the aim of spending £500 million of public money to speed up the building of the port infrastructure and manufacturing facilities needed to support offshore wind projects.
So far, only £141 million has been committed across 17 projects. Audit Scotland said reduced investor confidence and wider regulatory issues were listed among the reasons.
It said while the Scottish Government put in place a “collaborative investment approach” with its delivery partners to make the best use of public money, “this was significantly weakened after an early data breach” of commercially sensitive information in December 2024.
Wider governance issues, including funding, project monitoring and risk management have also hampered efficient delivery of the project, the report found.
The plan remains broadly on track to achieve its aim of generating £3 in private investment for every public £1 spent, with £413 million secured to date.
The Scottish Government’s project to stimulate investment in offshore wind infrastructure has made some progress, but it is slow going and there are clear risks to the programme
But the watchdog found investments have been grant-based rather than loans or equity in companies, which limits the potential to get money back while potentially increasing cost to the taxpayer.
Meanwhile, most of the private investment relates to a single subsea power cable manufacturing plant in the Highlands.
Stephen Boyle, Auditor General for Scotland, said: “The Scottish Government’s project to stimulate investment in offshore wind infrastructure has made some progress, but it is slow going and there are clear risks to the programme. The Government must address these quickly.
“Strengthening the programme’s governance and delivery arrangements and developing a clear plan for the future will help reduce uncertainty for delivery partners and investors, and give the programme the best chance of being successful.”
Scottish Conservative MSP Liam Kerr said: “This stark report exposes that the SNP have again failed to back up a headline-grabbing announcement with concrete action.
“John Swinney and his ministers have staked a lot on renewables and offshore wind meeting Scotland’s energy needs, but only a fraction of this fund has been spent so far.”
Mr Kerr said it is “concerning” that independent auditors were unable to find “any evidence of what the SNP are planning to do in the years ahead”.
He went on: “Offshore wind has a role to play in Scotland’s energy system, but the SNP cannot put all their eggs in this basket and then not deliver the investment required.
“The SNP need to recognise that if we are to truly protect jobs and our energy security, then they must also back new drilling in the North Sea and ditch their ideological ban on new nuclear.”
Energy minister Stephen Gethins said the project is “crucial” to supporting investment in the infrastructure “needed to realise Scotland’s offshore wind ambitions”.
He added: “I welcome Audit Scotland’s constructive recommendations on ways it can be strengthened.
“We have already implemented a number of these with our delivery partners, with work on the others actively under way.
“The programme is already delivering significant results for people and businesses. When wider funding for Ardersier Port is factored in, we have invested more than £191 million, attracting £70 million from public finance institutions and up to £713 million in private investment into projects with the potential to support up to 5,000 jobs.
“We have responded to changing market conditions and targeted support where it can provide the greatest confidence to investors, but we need the UK Government to step up now to remove barriers and provide the confidence the market needs in order to accelerate investment.
“The Scottish Government will continue to deliver high-value projects that strengthen Scotland’s offshore wind infrastructure and maximise the economic opportunities of the energy transition.”