The UK’s Crown Estate, which controls the disposition of land under Britain’s coastal waters, on 7 December unveiled further details for Round 5 of its offshore wind leasing competition, offering the opportunity for three commercial-scale floating wind projects to be developed in the Celtic Sea off the coast of South Wales and South West England. The projects have the potential to deliver a combined capacity of up to 4.5 GW and are expected to mark the first phase of commercial development in the region.
The Crown Estate has now launched it’s ‘Information Memorandum’ – a document which lays out to developers the necessary information they need to prepare and submit bids to progress offshore wind projects and win a seabed lease.
Developing an offshore wind farm in UK waters, from initial concept through to commercial operation, can take up to ten years. The Celtic Sea Developer Alliance has described today’s launch as a major step forward for both the industry and for Wales.
Key dates for Round 5 have been outlined in the Information Memorandum, suggesting that new agreements for lease could be awarded in Autumn 2025, with developers then progressing to seek planning consent for their projects through the statutory planning process.
The leasing process will be made up of four stages, including pre-qualification and invitation to tender, before entry into agreements for lease. The involved process is an opportunity for bidders to demonstrate they meet the necessary legal, technical and financial eligibility criteria.
New features have been announced for Round 5 including a revised Health and Safety approach, new requirements in relation to ports and port rights, the introduction of an ‘ascending clock’ auction, new Option Fee arrangements to share risk in relation to consenting, and a requirement for bidders to make commitments in relation to social and environmental value.
The Memorandum sets out 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.
Round 5 will be the first time floating wind farms have been deployed on commercial scale, presenting a number of supply chain opportunities as the market matures.
The Crown Estate 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 due to be published in early 2024.
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