UK leasing round for floating wind moves to final stage

Three sites available in what is known as Offshore Wind Leasing Round 5 are expected to form the first phase of commercial development in the Celtic Sea.

The Crown Estate’s Future of Offshore Wind report detailed plans to bring to market an additional 20-30 GW of offshore wind leasing opportunity by 2030. It outlined spatial potential for up to 12 GW of new capacity in the Celtic Sea (beyond Round 5), of which 4-10 GW could be leased by 2030 through future leasing rounds.

Evaluation of the proposals from the first stage of the tender (known as ITT Stage 1) has now concluded, with successful bidders invited to progress to the final stage (ITT Stage 2). This will involve an auction for the three sites later in Q2. Winning bidders are then expected to sign ‘Agreements for Lease’.

The Crown Estate – which manages the seabed around England, Wales and Northern Ireland – also revealed that, as part of the process, companies bidding to build the windfarms have shortlisted a potential locations in Wales and southwest England for the assembly and deployment of the new turbines.

The bidders progressing to ITT Stage 2 have set out which ports they intend to work with to support the delivery of projects if they are successful. This refers specifically to ‘integration ports’ where turbines will be mounted on large floating platforms before being towed out to sea. 

Detailed discussions between individual ports and winning bidders are expected to begin following the conclusion of the tender process. The development of ports to support the new windfarms is expected to lead to the creation of significant new opportunities for jobs and economic growth.

Bidders have put forward a range of ports at this stage which are in relative proximity to the Celtic Sea. These are: Pembroke Port (Port of Milford Haven); Port of Swansea; Port Talbot; Port of Bristol; Port of Plymouth; Falmouth Port; Port of Brest. The Crown Estate said, at this stage, the information provided by bidders indicates a strong potential for Port Talbot and/or Port of Bristol to play a key role in the delivery of Round 5 projects.

The Crown Estate embarked on Offshore Wind Leasing Round 5 in February 2024. The process is expected to award rights for three new floating windfarms in the Celtic Sea, capable of generating up to 4.5 GW.

The leasing round follows more than three years of engagement with a range of stakeholders including UK and Welsh governments, industry, environmental bodies and other users of the seabed to identify the best locations for the new windfarms and inform the approach to the leasing round.

Research published last year by The Crown Estate showed the new windfarms could support the creation of more than 5,000 jobs and deliver a £1.4Bn (US$1.8Bn) boost to the economy, with further opportunities through the supply chain.