Greenpeace UK has threatened legal action against the Crown Estate over the way it leases seabed to offshore wind developers, claiming high and uncapped fees could increase the cost of renewable energy and household bills.
The environmental group has challenged the Crown Estate’s auction process for the 1.5 GW Morgan Offshore Wind Project in the Irish Sea, off Lancashire.
The previous developers withdrew from the project in January. In July, the Crown Estate announced an accelerated tender process to find a new developer, with the aim of completing the process by the end of the year.
Greenpeace claims the streamlined auction still includes uncapped fees and argues that the Crown Estate is using its position as the legal owner of most of the UK seabed to maximise revenues.
The challenge follows research from the University of Oxford’s Smith School of Enterprise and the Environment, which estimates that seabed leasing costs could require offshore wind developers to sell electricity for 30% to 59% more than they otherwise would.
The report estimates that passing these costs on to consumers could add between £36 billion and £72 billion to energy bills between 2035 and 2054. It suggests the impact could amount to around £19 to £38 a year for a typical household in 2035.
Will McCallum, co-executive director of Greenpeace UK, said the Crown Estate should not increase costs at a time when the government is seeking to expand renewable energy.
“Accelerating homegrown renewable energy is the aim of this government and the solution to sky-high energy bills,” he said.
Greenpeace is calling for the Chancellor to introduce a cap on seabed option fees, including for the Crown Estate’s sixth leasing round, expected next year.
The Crown Estate made more than £1 billion in profits in 2024/25. Greenpeace argues that excess revenues from seabed leasing should instead support marine conservation.
The legal challenge comes as the government seeks to accelerate offshore wind development as part of its Clean Power 2030 ambitions.
