• 35% of energy SMEs do not feel their industry is prioritised by the Scottish Government; 
• 81% of energy SMEs believe there is a risk to their viability over the next 12 months; 
• 45% plan to invest in workforce and skills development and 42% plan to invest in digital adoption and AI.

Many small and medium-sized enterprises (SMEs) in the Scottish energy sector do not feel their industry is prioritised by the Scottish Government as concerns around viability grow, according to new research from Aberdein Considine LLP. 

The study, conducted by Censuswide in January as a follow-up to Aberdein Considine’s 2025 SME Business Outlook survey, found that more than a third (35%) of energy sector respondents do not feel their sector is prioritised by the Scottish Government - just two months ahead of the next Holyrood election. 

The findings demonstrate rising fears around businesses’ short-term survival, with more than four in five (81%) energy SMEs stating they believe there is a risk to their viability in the next 12 months, up from 67% in last year’s survey. Close to a third (28%) of SME energy firms reported their risk to viability was “significant”, compared to 13% in 2025. 

In addition to viability concerns, optimism amongst SMEs in the energy sector has fallen sharply since last year. When asked about the next 12 months, 46% of energy SMEs said they felt optimistic about their sector, down from 83% last year.

Despite the decline in optimism, 89% of energy SMEs say measures announced in the 2026 Scottish Budget are likely to have a positive impact on their business, notably higher than the 81% average across all sectors surveyed. 

Rod Hutchison, Partner and Energy Sector Lead at Aberdein Considine, said: 
“The findings from our 2026 SME research paint a picture of growing concern within the energy sector. While the data was collected prior to the recent escalation of conflict in the Middle East, it highlights the underlying pressures already facing businesses, which may now be further intensified by increased volatility in global energy markets.

"Although direct levers over energy policy sit largely with the UK Government, measures within the Scottish Budget, such as increased funding for colleges and apprenticeships alongside investment in offshore wind and climate initiatives, may still be viewed positively as they strengthen the skills pipeline and signal ongoing policy support for investment and innovation during the transition to low-carbon energy.

“Firms want to see their sector recognised as central to Scotland’s economic future, particularly in the run up to the election, but they’re pragmatic and will back measures that deliver stability and growth.”

Some respondents said frequent policy changes were adding pressure to already stretched operations.

One energy business commented: “Businesses in my industry are occasionally hindered by the frequent changes in government regulations, particularly when there is little time to adapt to new guidelines.” 

Reduced consumer demand and the wider economic downturn are cited as the biggest financial pressures (40%), followed by supply chain disruption (37%) and recruitment and retention costs (35%). 

Rising operating costs are also emerging as the primary barrier to growth for nearly a third (30%) of energy SMEs surveyed, with skills gaps and workforce challenges ranked second (16%) and restricted access to funding at 15%. 

In response, many energy SMEs are taking proactive steps to strengthen resilience and futureproof operations. Nearly half (45%) plan to invest in workforce and skills development over the next year, while 42% intend to prioritise digital adoption and artificial intelligence (AI), signalling a clear focus on productivity and efficiency gains. 

Sentiment around the energy transition remains broadly positive, with 78% of firms viewing it as an opportunity, up from 66% in 2025. One third (33%) see it as a major opportunity for their business, while a further 45% consider it a slight advantage. 

When asked how the Scottish Government could best support conditions for their business, 31% of energy SMEs said improving conditions to stimulate inward investment would be most beneficial and 29% called for greater availability of grant funding. Meanwhile, 17% favoured cutting taxes or providing tax reliefs ahead of the 2026 Scottish Parliament election.  

Rod added: 
"While the fact that 17% of Scotland’s energy SMEs are calling for tax reliefs ahead of the 2026 Scottish Parliament election is notable, many in the sector are particularly focused on the early abolition of the Energy Profits Levy (EPL), which is of course a reserved matter for Westminster. However, Scottish Parliamentarians can take steps to address the pressures Scottish energy firms are under, lobbying Westminster colleagues to reduce the tax burden on operators in the energy sector and relax the presumption against exploration and production in the UK Continental Shelf, which will stimulate investment in the North Sea and create opportunities for Scottish SMEs.”

“That said, the results also underline the wider picture: businesses are clearly looking for a more supportive investment environment overall, whether that’s through policies that stimulate inward investment, improved access to grant funding or a more competitive tax framework.

“Encouragingly, the sector remains resilient, with companies continuing to invest in skills, technology and AI to stay competitive, and with the right support there is a clear opportunity to build further confidence and unlock growth across Scotland’s energy industry.” 

The full survey findings can be accessed here and the report can be downloaded here.