The Crown Estate has successfully completed the first phase of its two-stage tender process for awarding seabed plots to floating wind developers in the Celtic Sea. The conclusion of Invitation to Tender 1 (ITT1) marks the submission of bids for three 1.5GW seabed plots, with a focus on developing offshore wind farms, establishing collaborations with local ports, and generating socio-economic benefits for surrounding communities.
The successful bidders will now advance to the second phase, an ‘ascending clock’ auction for financial bids (ITT2), which is scheduled for June. Following this, the winning developers will sign Agreements for Leases in late summer, with floating wind turbines expected to begin operations in the mid-2030s.
A research report from the Crown Estate highlighted the potential for substantial economic impact, estimating that the construction of these projects could create up to 5,000 jobs and contribute an additional £1.4 billion to the UK economy.
The tender also identified seven ports nominated by bidders in ITT1, with indications of a strong potential for Port Talbot and/or the Port of Bristol to play significant roles in the implementation of Round 5 projects.
These three seabed sites represent the first phase of commercial deployment in the Celtic Sea. The Crown Estate has outlined the potential for an additional 12GW of capacity in the area, with 4GW to 10GW expected to be leased by the end of the decade.
Energy Secretary Ed Miliband emphasized the UK’s leadership in floating offshore wind technology, stating: “The UK is a world leader when it comes to floating offshore wind, and by unlocking the untapped potential of the Celtic Sea we will reap the benefits of economic growth and thousands of jobs in Wales and the South West.”
He added, “More floating turbines in our waters means more clean, homegrown power that we control, delivering energy security for families and businesses.”
Gus Jaspert, Managing Director of Marine at the Crown Estate, remarked: “Developing this new technology in the Celtic Sea will open up transformational opportunities for new jobs, investment and growth across Wales, South West England and beyond.”
Jane Cooper, Deputy CEO of RenewableUK, welcomed the progress, saying: “We welcome this step forward toward the crucial final stages of this landmark leasing round which will kickstart the industrial development of floating wind projects and supply chains at scale in the UK.”
The Celtic Sea projects are poised to be a key part of the UK’s transition to cleaner, renewable energy, paving the way for future offshore wind development in the region.
