Greenpeace UK has warned it may pursue legal action against the Crown Estate unless it reforms what the campaign group described as “monopoly profiteering” from offshore wind seabed leasing, which it claims is inflating costs for developers and UK energy consumers.
The environmental organisation is calling for an urgent review of the auction process and the option fees paid by offshore wind developers, which exceeded £1 billion in the 2021 Round 4 leasing round.
“The Crown Estate should be managing the seabed in the interest of the nation and the common good, not as an asset to be milked for profit and outrageous bonuses,” said Will McCallum, co-executive director of Greenpeace UK. “We should leave no stone unturned in looking for solutions to lower energy bills that are causing misery to millions of households.”
According to Greenpeace, the Crown Estate has used its monopoly position to set lease fees at levels that increase revenue for the estate and executive compensation, while raising project costs for offshore wind developers. These higher costs, the group argues, may ultimately be passed on to consumers through energy bills.
The campaign group also warned that the current system could push up public costs a second time through increased curtailment payments. These are paid to Scottish wind farms—where leasing fees are capped—when they are forced to reduce output due to grid constraints.
“If the problem isn’t fixed before the next round, we may need to let a court decide whether or not what’s happening is lawful,” McCallum added.
Greenpeace has asked the Chancellor to intervene by requesting an independent review of the auction process. It is also urging that revenues from recent leasing rounds be redirected into marine ecosystem restoration.
In a letter to the Crown Estate Commissioners, Greenpeace argued that the estate has a legal responsibility to support the UK’s climate objectives and to avoid extracting monopoly value from public assets. The group also pointed to earlier parliamentary testimony from 2010, in which the Crown Estate reportedly stated it “cannot exploit [its] monopoly position.”
Greenpeace said the legal warning follows months of engagement, including written correspondence and a face-to-face meeting with Crown Estate representatives.
The Crown Estate has not publicly responded to the latest statements. The body, which manages seabed rights for offshore wind, is expected to play a central role in the UK’s efforts to meet net-zero emissions targets through expanded offshore wind deployment.
