© The Crown Estate The Crown Estate (TCE) has delivered up to 3 GW in offshore wind capacity from its Celtic Sea leasing round, falling short of its original 4.5 GW target.
TCE selected two bids to deliver new floating windfarms off the coasts of Wales and South West England, one from Equinor and another from Gwynt Glas – a joint venture between EDF Renewables and ESB.
The new windfarms will be among the largest floating wind developments in the world, which TCE said will underline the UK’s position as the “leading market for floating offshore wind in Europe”.
The two bidders will pay fees of £350 per MW per year for the rights to develop wind farms at the sites, significantly lower than the fees generated by the ScotWind leasing round in 2022.
TCE had originally hoped to award three leases in the Celtic Sea, which could have supported an estimated 5,000 jobs and provided a £1.4 billion economic boost to the region.
The organisation said it expects this leasing round to be the first phase of a new offshore wind industry in the Celtic Sea, with the potential for a further 4-10 GW of capacity to be awarded by the end of the decade.
© Supplied by BW IdeolThe third and final project development area, which could add another 1.5 GW of capacity, will be “progressed through delivery arrangements which will be detail shortly”, TCE said.
Early stage demonstrator projects are already in development in the region, including the 100 MW White Cross project and the 100 MW Erebus project.
The Celtic Sea announcement comes after TCE announced the details of a £400m investment in the UK’s offshore wind supply chain alongside publicly-owned GB Energy.
‘The next chapter’ for UK offshore wind
TCE said the selection of Equinor and Gwynt Glas is a “significant vote of confidence” in the UK’s offshore wind market “at a time of global volatility and uncertainty for the sector”.
TCE chief executive Dan Labbad said: “It’s now 25 years since we first laid the foundations for a new market for offshore wind in the UK, creating the right conditions for a new technology to establish and grow into the world-leading industry we have today.
“The selection of EDF Renewables UK, ESB and Equinor to write the next chapter of this story in the Celtic Sea is an exciting reflection of how far we’ve come in that time, and a vote of confidence in this new technology and the long-term future of the UK market as a place to invest.”
UK energy secretary Ed Miliband said floating offshore wind will be “transformative” for Wales and the South West, unlocking “thousands of jobs in places like Port Talbot and Bristol”.
Miliband said the Celtic Sea has “huge untapped potential” to support the Labour government’s clean power targets.
Welsh cabinet secretary for economy, energy and planning Rebecca Evans said establishing offshore wind in the Celtic Sea “marks the start of a new industrial opportunity for Wales”.
Meanwhile, Welsh secretary Jo Stevens said the Celtic Sea floating wind projects will have a “positive impact for generations to come”.
“Increased economic growth and thousands of new well-paid jobs will come from this huge vote of confidence in Wales’ energy industry and its workforce,” Stevens said.
Equinor and Gwynt Glas
Offshore wind developers Equinor and Gwynt Glas also welcomed the announcement.
Equinor senior vice president for renewables – Europe Trine Borum Bojsen said the UK is a “core strategic market” for the Norwegian state-owned firm.
“The seabed lease offers the scalability and timing flexibility we seek and is a long-term option for Equinor’s renewables portfolio,” Bojsen said.
© Supplied by Tugdock“We believe that the deeper waters in the Celtic Sea have good future potential for floating wind which will play an important role in unlocking the UK’s journey towards net zero.”
ESB executive director Jim Dollard said the Celtic Sea is of “strategic importance” for the Irish firm.
“The Celtic Sea is of strategic importance to ESB given its location adjacent to Ireland and the opportunities to develop a floating offshore project in what we believe to be an ideal area bodes well for our ambitions to develop a portfolio of floating offshore wind projects in Ireland and UK to contribute to the net zero plans for both countries as well as those of ESB,” Dollard said.
EDF Renewables chief executive Matthieu Hue said the French firm looks forward to further developing Gwynt Glas alongside ESB and Irish renewable energy developer DP Energy.
Celtic Sea ports growth
The advancement of floating wind in the Celtic Sea also provides an opportunity for significant investment in the region’s ports.
TCE previously flagged seven ports in Wales and south west England which bidding wind developers had identified for turbine assembly and deployment.
The ports will be used for integration and assembly, where the turbines will be mounted on to large floating platforms before being towed out to sea.
Shortlisted ports include Milford Haven, Swansea, Talbot, Bristol, Plymouth, Falmouth and Brest.
© Supplied by Blue Gem GroupMeanwhile, Falmouth Harbour in Cornwall has already started a £1m project to expand laydown space to support a floating offshore wind marshalling facility.
In response to the Celtic Sea announcement, British Ports Association chief executive Richard Ballantyne said the group will work with the developers and TCE to “ensure the region’s ports are ready to play their part”.
“UK ports play a vital role in the UK’s offshore wind industry, supporting the deployment and operation of windfarms that have become a mainstay of our energy transition,” he said.
“Floating offshore wind opens up an exciting new frontier, with new opportunities to invest in the vital facilities that will be needed to support this emerging sector, with new jobs and opportunities through the supply chain along the way.”
