Legislation proposed to help fast-track UK offshore wind projects, boost Celtic Sea capacity

Legislation put forward in the Autumn Statement of 22 November 2023 includes the ability to borrow capital and invest with more flexibility across The Crown Estate’s portfolio, in alignment with its strategy and core duties.

The Autumn Statement outlines the government’s commitment to bring forward legislation to modernise The Crown Estate’s investment powers ‘as soon as possible’ in the context of supporting future offshore wind leasing of up to 20-30 GW of seabed rights by 2030.

It also references the government’s commitment to unlocking the Celtic Sea development pipeline by up to a further 12 GW beyond the 4.5 GW already identified in an upcoming Crown Estate leasing programme known as ‘Round 5.’

In its capacity as manager of the seabed around England, Wales and Northern Ireland, The Crown Estate invests significantly to run leasing rounds, derisk the process for developers, and engage a diverse range of stakeholders with data and evidence. There is also an urgent and growing need for greater investment in data, insights and innovation to support the protection and enhancement of marine nature as more offshore technologies are rolled out to address climate change and energy security. 

The Crown Estate chief executive Dan Labbad said, “We look forward to working with UK government to bring forward this essential piece of legislation as soon as possible to modernise our investment powers.

“Changes to the Crown Estate Act will enable us to have an even greater impact across our portfolio to ensure we play our part in supporting the UK’s transition to a net zero and a more energy-secure future. Any future pipeline of offshore wind projects, both fixed and floating, must be done in the right way, managing both the needs of the many users and livelihoods dependent on our seas and protecting and enhancing our natural world.

“To do this at the pace and scale needed will require significant investment and partnership working across governments and sectors. We therefore also welcome the government’s commitment in the Autumn Statement to unlocking the potential of our seabed as part of the transition to a greener future that will also bring economic benefits for the whole of the UK.” 

The Autumn Statement also included several other measures that will help the offshore wind industry. RenewableUK chief executive Dan McGrail said, “There’s a strong focus in Chancellor’s Autumn Statement on accelerating green industrial growth. His announcement on permanent full expensing will provide a much-needed degree of long-term certainty for investors in green technologies, helping to make the UK an attractive destination for investment in clean energy projects and manufacturing.

“This combined with the announcement of £960M for a Green Industries Growth Accelerator to support clean energy manufacturing in the UK will help us to build up new supply chains in Britain at a time when international competition for investment in clean technology manufacturing has never been more intense. The decision to extend tax relief on freeports from five to ten years will help us to revitalise coastal communities by encouraging new investment in offshore wind manufacturing, including factories servicing innovative floating projects. Industry estimates that overall the offshore wind supply chain could boost the UK’s economy by £92Bn by 2040. 

“We also welcome the Government’s commitments to reform the planning system by offering local authorities financial incentives to make decisions faster, as well as their ambition to cut grid connection delays from several years to six months. We look forward to further key announcements such as the publication in March of more details on next year’s CfD auction which we hope will secure a record annual amount of new clean energy capacity.”