A new generation of floating wind farms in the Celtic Sea has moved closer to reality.
The Crown Estate has embarked on the latest phase in its Offshore Wind Leasing Round 5, which seeks to establish a new generation of floating wind farms in the Celtic Sea, off the coasts of South Wales and South West England.
First set out in December 2023, the plans represent a new chapter for the UK’s offshore wind industry, with the potential to see new floating turbines generating enough renewable energy to power more than 4 million homes (up to 4.5 gigawatts). The new wind farms also open up opportunities for thousands of onshore jobs and new investment through the supply chain.
Round 5 has also become the first leasing round to be brought to market with an agreed plan for connecting the new windfarms to the UK’s electricity grid, with the Electricity Systems Operator (ESO publishing its Celtic Sea network design recommendation.
Agreements for lease are expected to be signed off in summer 2025.
Key milestone
The second phase of the leasing process, which got underway in August 2024, will see bidders set out plans for delivering the new wind farms, as well as details on how their plans will support the delivery of wider social and economic benefits for onshore communities. It follows a series of assessments and ongoing surveys by The Crown Estate to ensure any impacts on the marine environment are properly managed.
Research published in February this year by The Crown Estate showed that the supply chain for new Celtic Sea floating wind farms could create more than 5,000 new jobs and deliver a £1.4 billion boost to the economy.
Bidders are encouraged to be ambitious in developing their proposals, which could include initiatives linked to skills development, apprenticeship opportunities, community impact, sustainable procurement and nature restoration.
They will also need to outline how they intend to work with ports in the execution of their plans, identifying both a primary and alternative port that they propose to use for the assembly of the windfarms. These plans will then form contractual obligations as part of the lease agreement for successful bidders.
Grid design collaboration
As part of steps to remove some of the barriers faced by developers with plans for offshore wind farms, The Crown Estate has been working closely with ESO to help support the early development of a plan for connecting the new floating turbines to the UK’s energy grid.
The ESO has published its Celtic Sea network design recommendation meaning that, for the first time, developers are able to move through the leasing round with an understanding of how their new windfarms will be connected to the grid. It is hoped this model will act as a template for future leasing rounds, helping further accelerate the deployment of offshore wind.
Great British Energy
The progress made on Round 5 comes as the UK Government set out further details of Great British Energy, including a new partnership with The Crown Estate to support the accelerated delivery of clean energy infrastructure for the UK.
The partnership will bring together Great British Energy’s ability to invest and critical strategic industrial policy, with The Crown Estate’s expertise in bringing forward the UK’s offshore wind sector. This will be supported by new legislation recently introduced into Parliament which is intended to give The Crown Estate new investment and borrowing powers, enabling it to play a greater role in supporting offshore wind and other emerging offshore renewable technologies. This includes the establishment of the UK’s floating wind sector and associated supply chain.
This is not only expected to benefit Round 5 projects, but could support any future development, with up to 12GW of further capacity earmarked for floating offshore wind in the Celtic Sea. Further details on the new partnership are available here, and more information about Round 5 here.
