The Crown Estate has released additional information about Round 5 of its offshore wind leasing competition, presenting the chance to develop three large-scale floating wind projects in the Celtic Sea.
The new wind farms will have a combined capacity of up to 4.5GW and mark the first phase of commercial development in the region.
The IM details how The Crown Estate intends to create new social and economic opportunities, including a series of contractual commitments for developers, as well as information on how it has sought to de-risk the development of projects.
Offshore wind is now a cornerstone of the global effort to decarbonise electricity production and developers such as Floventis are at the forefront of activity in the Celtic Sea. The Llŷr wind farms will be amongst the first floating offshore wind test and demonstration projects to be developed and constructed in the UK, showcasing the next generation in clean renewable offshore renewable energy technology. Consultation is expected to start in the new year.
This latest leasing programme will be known as Round 5, following four previous leasing rounds by The Crown Estate, which have helped establish the UK as one of the leading offshore wind markets in the world, with almost half as much operational capacity as the rest of Europe combined.
A new chapter for offshore wind
As a company for the country, The Crown Estate exists to create the best value it can for the nation and for future generations, including social, environmental and financial. Working in partnership with a wide range of stakeholders, it aims to play its part in responding to major challenges such as climate change, nature loss and enabling economic growth.
This is reflected in the ground-breaking approach it has taken to Round 5, not just supporting the establishment of a new industry and ensuring it creates new social and economic opportunities, but enabling its success through upfront investment in important workstreams to de-risk the process for developers and accelerate the deployment of projects.
This includes a multi-million-pound programme of marine surveys to better understand the physical and environmental properties around the locations of the new wind farms, as well as carrying out a Plan-Level Habitats Regulations Assessment early on in the process.
An Information Memorandum published today (7th December 2023) also includes details of a series of contractual commitments for developers to create positive social and environmental impacts, focused on skills and training, tackling inequalities in employment, environmental benefits and working with local communities. Bidders will also be required to demonstrate commitments for the timely access to the port infrastructure needed to successfully develop their projects.
New supply chain opportunities
Round 5 will be the first time floating wind farms have been deployed on commercial scale, presenting a number of supply chain opportunities as the market matures.
The Crown Estate has commissioned new research, due to be published in the new year, to provide a view on how best to maximise the economic and social benefits arising from Round 5 and the longer-term sustainable development of the offshore wind industry.
The Crown Estate has also outlined its intention to bring forward a new pilot fund to help accelerate supply chain projects, with an initial focus on opportunities arising from Round 5. Further details are expected to be set out in the first part of 2024.
Dan Labbad, Chief Executive of The Crown Estate said:
“The UK’s offshore market is one of the most successful in the world and floating wind is the next chapter in this exciting story, backed up by recent support from UK Government to unlock further important capacity over the coming years.
“At its core, The Crown Estate’s role is to serve the country by using its land and seabed to create the best value we can for the nation and for future generations – including social, environmental and financial. This means drawing on the skills, knowledge and input from our full range of stakeholders as we seek to play our part in responding to some of the biggest challenges, whether that’s climate change, nature loss or enabling economic growth.
“This approach has underpinned the development of Round 5, which is the culmination of years of engagement across governments, environmental bodies, industry and other stakeholders. As the collaboration and partnerships that have brought us this far continue, this opportunity stands to be a game-changer for business and communities associated with these projects, as we realise the full potential of floating wind in the Celtic Sea and beyond.”
Minister of State for Energy Security and Net Zero Graham Stuart said:
“Floating offshore wind is a huge opportunity for Wales and the South West, with the potential to deliver billions of pounds of direct investment whilst bolstering our energy independence and net zero ambitions.
“Today's plans will build on the Government’s ambition to deploy up to 5GW of floating offshore wind by 2030. Together with The Crown Estate I look forward to bringing more capacity online, through our plans to see up to 16GW deployed in the Celtic Sea through the 2030s.”
Minister for Climate Change, Julie James, said:
“I welcome this announcement and the continued progress to secure major renewable investment in Floating Offshore wind in the Celtic Sea. The potential for 4.5GW of new generation will support our ambitions for Wales to fully meet our electricity needs from renewable sources. The commitment to a pipeline of a further 12GW of development is the catalyst for real economic and social change for the region.”
Chief Executive of Renewable UK, Dan McGrail, Co-Chair of the Floating Wind Taskforce said:
“The UK is already a global leader in floating wind with innovative world-class projects generating in Scottish waters and one of the biggest project pipelines in the world. Today’s announcement by The Crown Estate represents a major step forward as it will enable us to ramp up our floating wind capacity significantly by deploying full-scale projects for the first time in the Celtic Sea, bringing much-needed jobs, investment and socio-economic opportunities for people in Wales, the south west of England and the rest of the UK. It will unlock massive opportunities to build up our floating wind supply chain and to attract billions in investment in new infrastructure by transforming ports into new industrial hubs for floating wind”.
“We are already working closely with The Crown Estate, Crown Estate Scotland and the Offshore Wind Industry Council on an Industrial Growth Plan to boost new offshore wind supply chains throughout the country and enable us to export our cutting-edge technology worldwide. This represents a £92 billion opportunity for the UK if we can develop our capacity and expertise in a number of key areas – including floating wind.
“Our analysis shows we have the potential to install 34GW of floating wind in UK waters by 2040, creating tens of thousands of new jobs. This technology will play a key role in decarbonisation as well as boosting our energy security and getting us closer to net zero.”
Julian Leslie, Chief Engineer and Head of Networks, ESO:
“We are pleased to be working closely with The Crown Estate to support the development of a more coordinated approach to the delivery of transmission infrastructure for offshore wind projects.
“We recognise that such an approach to seabed leasing and planning related to offshore wind is required if the UK is to realise its clean energy potential offshore, while minimising impacts on the marine environment, and on coastal communities.
“For the Celtic Sea, we are producing our Holistic Network Design ahead of the seabed leases being awarded. To enable this, The Crown Estate have shared offshore spatial development areas to inform our offshore network design. This is a first of its kind and will lead the way for future offshore leasing rounds.”
