Two UK Floating Wind Tender Winners Enter Lease Agreements with Crown Estate

The two developers that the Crown Estate selected this year to build floating offshore wind farms in the Celtic Sea, Equinor and a joint venture between EDF and ESB, have now entered into lease agreements for their floating wind projects with the UK seabed manager.

Equinor and the EDF-ESB joint venture, named Gwynt Glas, were selected as preferred bidders in the Offshore Wind Leasing Round 5 on 12 June. Each of the two developers was awarded 1.5 GW of capacity in their respective project development area (PDA) for an annual option fee of GBP 350/MW (approximately EUR 410/MW).

The floating wind farms are expected to be operational in the mid-2030s, subject to developers securing all necessary permits.

Equinor and Gwynt Glas are now expected to focus on developing their project designs, delivering onshore and offshore site surveys, Environmental Impact Assessments (EIAs), public engagement and securing planning consents.

The Crown Estate says that, once these initial requirements have been completed, the developers can then apply for a full lease to build and operate the new wind farms.

“This follows several steps taken by The Crown Estate to derisk Round 5 and make the opportunity even more attractive to prospective bidders ahead of the auction, including agreeing a plan with the National Energy System Operator for connecting the sites to the UK’s energy grid”, the Crown Estate said in a press release on 7 October.

“As part of industry-leading contractual commitments included within the developers’ agreements for lease, Equinor and Gwynt Glas will also deliver a range of social, economic and environmental measures over the lifetime of their projects.”

Announcing the lease agreements, the Crown Estate said that research published last year showed that the full delivery of Round 5 could support the creation of more than 5,000 new jobs and deliver a £1.4 billion (around EUR 1.6 billion) boost to the UK economy.

Initially, the plan was to offer four floating wind areas with a total capacity of 4 GW. In 2023, the UK seabed manager announced three areas off the coasts of Wales and South West England would be auctioned off, but that they could also house higher installed capacity: 4.5 GW.

Offshore Wind Leasing Round 5, the UK’s first dedicated floating wind round, was launched in February 2024, offering the three areas.

After selecting Equinor and Gwynt Glas this June for two of the three sites, the Crown Estate said it would ensure the delivery of the full potential capacity available through Round 5 through the deployment of a third site.

On 7 October, the Crown Estate said that it had been actively engaging the market with a view to securing a developer for the third site and that it expects to provide a further update in the near future.

“That the UK is in a position to host large innovative floating offshore wind projects off our coasts is the result of many years of planning, investment and ambition, ensuring the UK can both facilitate the establishment of exciting new technology and remain attractive to international investors”, said Gus Jaspert CMG, Managing Director, Marine at The Crown Estate.

“These projects will be among the largest of their kind anywhere in the world, with the potential to provide millions of homes with clean energy and support thousands of new jobs. This vital contribution to the UK’s energy security and economic growth should be celebrated and I congratulate both developers on this latest milestone.”

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