The Crown Estate has set out further details of a new leasing round for commercial-scale floating wind projects in the Celtic Sea off the coast of South Wales and South West England. The projects have the potential to deliver enough clean, renewable energy for more than four million homes.

The new wind farms will have a combined capacity of up to 4.5GW and are expected to be the first phase of commercial development in the region, with the UK Government confirming as part of its Autumn Statement in November 2023 its intention to unlock space for up to a further 12GW of capacity in the Celtic Sea.

This latest leasing programme will be known as Round 5, following four previous leasing rounds by The Crown Estate.

Photo by Aron Yigin

A new chapter for offshore wind

An Information Memorandum published by the Crown Estate 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

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.

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.”

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.”

Tom Hill, Marine Energy Wales’ Programme Manager said: “The starting pistol in the race for offshore wind development in the Celtic Sea has been fired. Publication of The Crown Estate’s Information Memorandum has been a long time coming, and many developers are already eager and poised to begin work on obtaining a lease – the first piece in the puzzle to building an offshore wind farm. We will continue to support developers through the Celtic Sea Developers Alliance, facilitating collaboration to advance the sector and ensure Wales and its communities receive the maximum possible benefit.”

Timing and Information Memorandum

An Information Memorandum (IM) has been published which outlines details of the Round 5 opportunity, requirements, and anticipated timelines for the leasing process.

Suggestions are that new agreements for lease could be awarded in Autumn 2025, with developers then progressing to seek planning consent for their projects through the statutory planning process.

The Round 5 leasing process will begin in early 2024 when pre-qualification questionnaires will be issued to prospective Bidders.  Detailed timings will be confirmed by The Crown Estate in due course.