UK sets out plan for commercial-scale floating windfarms

Three project areas in the Celtic Sea off the coast of South Wales and southwest England have been identified in an Information Memorandum published today (7 December 2023) that have the potential to deliver enough clean energy for more than four million homes.

The new windfarms, described by The Crown Estate as ‘a new chapter for offshore wind,’  will have a combined capacity of up to 4.5 GW 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 12 GW 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. Round 5 will be the first time floating windfarms have been deployed on commercial scale, presenting a number of supply chain opportunities as the market matures.

Three Project Development Areas (PDAs) for floating windfarms in the most commercially attractive parts of the Celtic Sea are identified in the guidelines, all in close proximity to supporting infrastructure and grid

connections in South Wales and southwest England. The PDAs are of roughly equal size, each with a potential capacity of up to 1.5 GW.

The seabed manager has taken what it describes as “a ground-breaking approach” that includes a multi-million-pound programme of marine surveys to better understand the physical and environmental properties around the locations of the new windfarms, as well as carrying out a Plan-Level Habitats Regulations Assessment early on in the process.

The Information Memorandum 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.

The Crown Estate has commissioned new research, due to be published in early 2024, 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. It 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.

The Crown Estate will hold a Bidders Day at the end of January 2024. This is intended to allow prospective bidders and their advisors to find out more about the process and ask any questions about the details set out in the Information Memorandum. The first stage of the Round 5 tender process will be publication of a Pre-Qualification Questionnaire in early 2024. 

The Crown Estate chief executive Dan Labbad 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 southwest. “Today’s plans will build on the Government’s ambition to deploy up to 5 GW 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 16 GW deployed in the Celtic Sea through the 2030s,” said the Minister of State.

RenewableUK chief executive 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 southwest 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 34 GW 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.”