Tuesday 5 July 2022

In a major step forward in supporting the UK’s net zero ambitions, The Crown Estate has identified five broad ‘Areas of Search’ for the development of floating offshore wind in the Celtic Sea – a region rich in natural resources, including world-class wind resource that can be developed with floating turbines. This marks a significant milestone and provides the foundation on which to build greater capacity in the future, helping the UK to achieve its renewable energy targets and drive economic development.

These areas have been identified following technical analysis and extensive engagement between The Crown Estate, the UK and Welsh governments and key agencies, and specialist stakeholders. Further stakeholder and market feedback will be used to refine the Areas of Search into smaller project development areas, within which the first generation of commercial-scale floating windfarms could be built. These project development areas will be offered to the market via competitive tender, to be launched in mid-2023.

It is intended that these areas will deliver 4GW of floating offshore wind power by 2035 – kick-starting industry in the region and providing power to almost four million homes. A detailed map has been published alongside the draft site selection methodology, available to view here.

In recognition of the UK’s ambitious net zero agenda and the need to develop competitive technology and supply chains, The Crown Estate will be tendering larger, 1GW-scale projects which may be developed in a phased or ‘stepping stone’ approach. This approach is deliberately intended to provide further opportunities for investment in the supply chain and to facilitate the co-ordination of supporting infrastructure. The Crown Estate is committed to work with and alongside other stakeholders to build a strong supply chain in the region and is exploring the options to help stimulate investment, with more information to be shared in the coming months.

This proposed leasing round will play a key role in realising green energy ambitions in the Celtic Sea. Separate new research commissioned by The Crown Estate indicates that the Celtic Sea has the economic potential to accommodate up to an additional 20GW of floating offshore wind capacity by 2045.

The proposed tender approach draws on experience of earlier leasing rounds to accelerate development timelines and reduce risk to developers, for example by bringing forward the plan-level Habitats Regulations Assessment (HRA) ahead of market tender and initiating offshore survey work. Alongside this announcement, the HRA will commence based on the Areas of Search. It will assess the potential impacts of these leasing plans on valuable habitats that make up the UK national site network of environmentally designated sites.

The Celtic Sea leasing opportunity will also give developers the option to incorporate innovations such as green hydrogen production, using renewable energy from the offshore floating windfarms, into their projects.

The Areas of Search take account of a variety of factors, including navigation routes, fisheries activity and environmental sensitivities. By balancing these and other factors, and incorporating feedback from stakeholders, the Areas of Search have been assessed as the most favourable locations for floating offshore wind and those most likely to be deliverable in the near term, accelerating secure domestic energy.

The Crown Estate will continue to invite views from a range of specialist partners on key topics over the coming months.

Subject to the outcome of the plan-level HRA, The Crown Estate will in 2023 also confirm seabed rights for three separate ‘Test and Demonstration’ sites in the Celtic Sea. Experience from these smaller-scale developments will inform the rollout of larger projects in the Celtic Sea and elsewhere.