The independent report from the University of Strathclyde’s Fraser of Allander Institute, commissioned by Scottish Renewables, also said the industry supported £5.1bn of gross value added (GVA), underlining its position as a significant driver of Scotland’s economy.

Scottish Renewables has urged the UK Government to take away obstacles to investment and place renewable energy at the centre of its plans for economic growth as well as industrialisation.

The report covers 2023 and 2024. In 2024, offshore wind supported the most employment of any renewable energy technology, with an estimated 18,800 full-time equivalent (FTE) jobs across Scotland, according to the report. 

Onshore wind supported a total of 17,825 FTE jobs, followed by hydropower with 4,100 and renewable heat with 3,025.

Key developments during 2023-24 included:

• South Kyle Wind Farm opened in 2023, generating £44 million in local spending and an expected £38m in lifetime community benefits.
• Seagreen, Scotland’s largest offshore wind farm, became fully operational in 2023. The £3bn project supports roughly 80 direct jobs at Montrose Port.
• In 2024, Sumitomo Electric started construction on a £350m subsea cable factory at Nigg, anticipated to support roughly 250 direct jobs.
• Additionally, in 2024, Coire Glas completed £100m of exploratory works. If built, it would be the UK’s first major pumped storage hydro development in over four decades. 

Angela Hepworth, chief executive officer of Scottish Renewables, said: “Scotland’s renewable energy industry is a major engine of economic growth, supporting nearly 50,000 jobs and generating almost £15bn of output. 

“From construction to operation and maintenance, it supports businesses, livelihoods and communities across the country.”

Hepworth added: “On Autumn Budget day, these figures show why renewable energy must be at the heart of any serious plan for growth, strengthening energy security, driving reindustrialisation and attracting investment to Scotland.

“With much of the energy transition funded by private investment, both governments need to give businesses confidence to commit. 

“The UK Government must back Scotland’s pipeline in its strategic energy plans and ensure projects can compete in future auctions, while the Scottish Government must speed up planning decisions.”

Stuart McIntyre, professor of economics and head of the economics department at the University of Strathclyde, said: “This latest report highlights that Scotland’s renewable energy sector contributes much more than the energy it generates. Its economic impact extends across a wide range of industries, supporting jobs, businesses and supply chains throughout the country.

“Renewables have an important role to play alongside other technologies in delivering a secure, affordable and increasingly low-carbon energy system.”

McIntyre added: “There is also a significant opportunity for Scotland to capture more of the economic benefits associated with investment in the sector, but this will depend on having the right skills, infrastructure and supply chains in place.”

Office for National Statistics survey data with a model of the Scottish economy were combined by researchers, as renewable energy is not separately identified in the National Accounts.

The findings present a picture of the industry’s economic contribution in each year, instead of a measure of year-on-year growth. 

Survey uncertainty, revisions to official data and an updated economic model mean the results should not be compared directly with previous editions.