“Despite being rich in energy resources, Shetland has the highest rate of fuel poverty in Scotland and 47% of households live below the minimum income standard”, Voar Report
Battling the Shetland elements
I recall being in Shetland some years ago when a storm hit and the electricity supply pylons were blown down and Shetland was without electricity for a week. I was working in laboratory specialist sales at the time and had secured an order for the complete refurbishment of a laboratory on Bressay, a small island, seven minutes by ferry from Lerwick Harbour.
I took a flight up to Shetland from Aberdeen to ensure the installation went according to plan and to set up and calibrate the new equipment required. I was accompanied by my client’s business manager, a regular on the Shetland flight, who warned me not to take the orange juice for breakfast when offered. I found out soon enough why she had proffered this advice. The turbulence experienced at a particular point in the journey was soon evident.
Although, our journey was relatively easy compared to that of the lab furniture installers. We discovered on landing, having been tasked with getting the laboratory furniture to Shetland by ferry from Aberdeen, our installers had braved gale force winds on the ferry, spending the bulk of the journey, below deck armed with buckets. Regular travellers by ferry to and from Shetland will immediately know what that was about!
Project completed – the weather still untamed
The project was completed within 4 days and all involved celebrated its success with a Chinese meal in a local Lerwick restaurant which was reputed to be the best Chinese restaurant in the U.K. Yet, another storm closed in and on exiting the restaurant we drove back to the hotel through several inches of snow. We were advised by the hotel receptionist that it would be wise to count the number of lampposts along the stretch of road in front of the hotel and park our hire car beneath one.
The following morning, we counted the lampposts so we could locate our car and dug it out of the snow that had fallen during the night – climbing in through the boot as the doors were frozen. It’s worth noting, that our hotel was located on the seafront putting pay to the common assumption that salt air is enough to keep coastal areas free of snow. Local geography and cold ocean currents are a definite consideration in Shetland!
Travelling in a hire car, with the minimum required tyre tread from Lerwick to Sumburgh airport along a road with hairpin bends in those conditions, was an adrenaline rush! We caught the last flight out of Shetland that day. There wasn’t another flight for a week!
Shetland past and present – a powerhouse for energy infrastructure
At the time of my visit, Shetland had one of the largest pieces of energy infrastructure in Scotland – built at Sullom Voe. Constructed between 1975 and 1981 to contain all the pipeline structure and storage facilities needed to support the North Sea oil industry, the Sullom Voe oil terminal received its first oil from the Brent and Ninian fields in the winter of 1978. In addition, the West of Shetland Pipeline transports gas from offshore fields to the terminal, some of which is used to power the Sullom Voe power station, and some used in enhanced oil recovery operations in the North Sea.
Fast forward to the present day, and Shetland having contributed substantially to the development of the oil & gas industry in the U.K., is now playing a pivotal role in the transition away from fossil fuels. A report from the Lerwick-based energy consultancy Voar included input and advice from the think-tank Future Economy Scotland outlining how a ‘just transition’ for Shetland could be achieved. The report was commissioned by the Just Transition Commission. Shetland should be playing a leading role in shaping a ‘just transition’. It has been at the forefront in energy developments since Sullom Voe was established and has experience of dealing with extreme weather conditions – as the story above illustrates all too well.
A sustainable future based on community needs
The scale of the new energy projects, particularly regarding on and offshore wind generation, is highlighted in the report’s executive summary. The projects will deliver 3,500MW of power – approximately 70 times Shetland’s peak electrical demand. However, unlike in the early days of oil & gas, Shetland has seen a significant drop in community benefits and fuel poverty is high.
For Scotland to realise its full economic potential and maximise the benefits of its natural resources through a ‘just transition’, a major change in direction is needed. The orthodox economic models currently employed are insufficient. These economic policies are also being challenged because they do not address concerns and challenges within local communities. What works for the City of London is not working for island and rural communities in Scotland.
Moving towards a sustainable future for Scotland should involve collaboration with local communities. The experiences of Shetlands inhabitants are a testament that the path to a ‘just transition’ has not been as smooth as one would have hoped. Only a tiny percentage of 0.4% of the energy business on Shetland is in public ownership, the rest is owned by foreign companies.
Destruction of ecosystems locally and globally
The Scottish Government (SG) is facilitating the ongoing destruction of rural and island landscapes and ecosystems, while local concerns are not currently being addressed. The Voar Report highlights the concerns of Shetland’s fishermen. In particular their fear that the predominantly family-owned fishing fleet will be displaced by the development of offshore wind projects deemed necessary for a ‘just transition’. Rural agricultural businesses are necessary for our country’s food security and rural dwellers are not getting answers from developers and government.
This is all happening while global economists are striving to direct and help politicians and businesses to adopt sustainable practices. Renowned economist Marianna Mazzucato’s recent report cautions that the resilience of the Amazon Rainforest is being sorely tested. Recent scientific papers and reports have concluded that a tipping point will soon be reached, which would result in untold damage to the global ecosystem.
There is no doubt that global sustainability is under threat and the need for a ‘just transition’ is urgent. People feel they are powerless to act as politicians are lobbied by influential monopolistic entities where shareholders’ dividends are paramount. It’s not just the economics that should dictate the strategy to embed sustainability. The wellbeing and cultural aspects of communities should be front and centre of any ‘just transition’ strategy. Sadly, these communities are being trampled underfoot in pursuit of profit. Recent outcomes of COP29 in Baku, are proof that the international community is nowhere near addressing the climate catastrophe we are facing both currently and in the future.
Shetland – where large companies are favoured over local sustainability
On a national and local level, Shetland is a glaring example where a change in current strategy is needed. To be fair, the SG has in the past sought expertise in setting up the Scottish National Investment Bank; a “promising model” for other national green investment banks to emulate. The SG stressed the importance of establishing institutions which support a ‘just transition’ whilst investing in sectors and companies to assist in the decarbonisation of Scotland’s economy.
Like many other urgent issues, a ‘just transition’ means different things to different people. However, the term ‘just transition’ for some remains a pipe dream. The planning system is skewed in favour of large companies. Unlike the developers of the energy infrastructure, there are no rights of appeal for communities which are affected.
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