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Plans for floating wind farms off Welsh coast move a step closer

By Emily Price
The Crown Estate. Photo Chris Dorney

Plans for a new generation of floating wind farms off the coast of Wales and south west England have moved a step closer as the leasing round for three sites in the Celtic Sea entered its final stages.

The Crown Estate - which owns and manages the seaside around Wales, England and Northern Ireland - also revealed that companies bidding to build the new wind farms shortlisted a range of potential locations in Wales for the assembly and deployment of turbines.

In February 2024, the Crown Estate embarked on a new leasing round for three areas of seabed off the coasts of Wales and England.

Known as 'Offshore Wind Leasing Round 5', the process is now expected to award rights for three new floating wind farms, capable of generating enough new renewable energy capacity to power more than four million homes.

It follows more than three years of engagement with stakeholders - including the UK and Welsh Governments - to identify the best locations for the new wind farms.

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Opportunities

As part of the process, bidders submitted proposals for developing the new wind farms, alongside plans for creating new opportunities for jobs and economic regeneration and working with ports.

All shortlisted bidders identified seven potential "integration ports" in Wales and south west England – including at Pembroke Port (Milford Haven), Swansea, and Port Talbot.

The integration ports will be used to assemble and mount the 300 meter tall turbines on floating platforms the size of a football pitch before they are towed out to sea.

The Crown Estate says the project could create more than 5,000 jobs and deliver a "£1.4 billion boost to the economy".

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Lease

Successful bidders have now been invited to progress to the final stage which will see an auction for the three sites later in the spring with winning bidders expected to sign agreements this summer.

Welsh Secretary Jo Stevens welcomed the news.

She said: "Today's announcement shows that Wales is ready to seize the golden opportunity of floating offshore wind in the Celtic Sea, and secure more than 5,000 jobs and billions of pounds of investment this has the potential to bring.

"Wales will play a key part in delivering clean power as part of our Plan for Change, boosting economic growth, lowering energy bills and putting more pounds in people's pockets."

Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans, said: "This milestone represents a significant opportunity for Wales.

"Floating offshore wind in the Celtic Sea will not only advance our clean energy goals but create valuable jobs and investment across Wales’ coastal communities.

"Our ports are well positioned to support this growing industry and we're committed to ensuring such developments deliver lasting economic benefits for Wales whilst continuing to strengthen our position as a renewable energy leader."

The three sites are expected to be the first phase of commercial development in the Celtic Sea.

Energy

The Crown Estate’s Future of Offshore Wind report detailed plans to bring to market an additional 20-30 gigawatts of offshore wind leasing opportunity by 2030.

Gus Jaspert, Managing Director, Marine at The Crown Estate, said: "The advent of floating offshore wind offers a generational opportunity for the UK to be at the forefront of an exciting new global industry. 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.

"With Government backing to secure the long-term success of the UK as a global leader in floating wind, we can lay the foundations for future generations to reap the rewards of a decarbonised, energy-secure and prosperous future.

"We look forward to continuing our work with governments and the industry to secure the investment and commitment needed as we move forward, for the benefit of coastal communities and the UK as a whole."

The Crown Estate, which owns the UK seabed out to 12 nautical miles, is a £16 billion portfolio belonging to the reigning monarch.

The revenue from its holdings goes to the UK Treasury.

Devolving Crown Estate powers has been the official stance of Labour ministers in Cardiff Bay for several years.

In February, Labour politicians in Westminster blocked an amendment to the Crown Estate Bill which would have seen those powers handed to the Welsh Government.

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29 comments

TheOtherJones

This is why Labour won’t devolve it, they want to extract the wealth to spend elsewhere (England) to stave off Reform/Tories in the red wall. Voting for Labour is a wasted vote next year, they’ve shown us all that they won’t stand up to their Labour UK Government. What is the point in voting for a vassal Government that’ll just do whatever it’s told?

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Llandudno boy

Wales will never become a wealthy nation while the Labour party allows the Crown Estates to extract our natural resources and generate money for their benefit, and to our detriment. Wake up Wales, we are being taken for a ride, just like in the Industrial Revolution.

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Howie

There are not 4 million homes in Wales, so Wales being used and blighted by pylons to provide power to England so they can benefit from it to our cost.

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Jeff

Have you thought about the 4500 pound per person fiscal subsidy sent the by the english the other way? Being part of union has advantages and disadvantages but the positives obviously outweigh the downsides at the moment. A lot of welsh export industry will crumble under carbon border taxes to be introduced this year if we dont increase renewable split on the south welsh grid, especially. Its its not residents who need green energy and the welsh industry is very carbon heavy - think-tata (3 plants), celsa, airbus, Toyota, milford hafen, two glass manufacturers (as a starter)

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Howie

We have had carbon levies before EUETS for starters, now UK ETS, the Carbon Import Tax on imported goods is sold as levelling playing field from 2027, less energy intensive users, CCL and levies within contracts.

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Llew Gruffudd

I am surprised. I didn't think there was anyone left who still believes the myth of England subsidising Wales. I am obviously missing something, so perhaps you could enlighten us about the £14.4 billion ' subsidy ' that comes our way. Supporters of the 'Union ' do have a habit of throwing misleading figures around.

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In reply to Llew Gruffudd

Undecided

I think you are wrong here. The subsidy probably is not £14.4 billion per annum; but it’s not zero either. Back in 2022, an Irish academic (Doyle) estimated the subsidy to be around £2.5 billion; but based on what he admitted were some fairly heroic assumptions. Thus the real answer is probably somewhere in between; but there is a subsidy however inconvenient some may find it - and regardless of charging England for Welsh water and all that.

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In reply to Undecided

Llew Gruffudd

I am quoting Jeff's figure of £4500 per person. If you read my response I am inviting him to explain how he arrives at it. It is not my view of the subsidy. As for your assertion that there is a subsidy and it lies somewhere undecided, you really should come up with some support for that assertion.There is far too much unsubstantiated comment to be meaningful.

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In reply to Llew Gruffudd

Undecided

The ONS consistently identify a subsidy in the region of Jeff’s figure. Some, I accept, question the validity of these figures from a branch of the British state; but Prof Doyle’s report is independent. Google it and you will see that it is more than assertion. Even the Independent Commission in Wales talked about “hard choices” here. The bottom line is that it is equally incumbent upon those claiming there is no subsidy to produce evidence. I see none.

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In reply to Undecided

Llew Gruffudd

The ONS figure that you quote is clearly questionable. Financial data is not collected on a Wales specific basis but on a UK basis. This data is then dis aggregated to find the Wales figure. It is done using estimates, assumptions and adjustments, their words not mine. so not actual data at all. Indeed HMRC, concedes that the Wales figure for tax revenues are understated as some taxes, mainly corporate taxes and VAT, for businesses in Wales, are attributed to the business HQ outside Wales and not to Wales revenue stream. When using dodgy data it is wise to see that the outcomes make logical sense. When the Wales budget deficit was quoted by the ONS and others as being £13.7 billion, over the same period the UK deficit was £39.7 billion. This would have meant that Wales with 4.8% of the UK population, was responsible for 35% of the UK deficit. It makes no logical sense. When you refer to Professor Doyle and his independence. He used the same financial data, but presented it in the context of Wales as an Independent nation. Questioning the size of the defence budget for example. So although Prof Doyle is independent [ although not entirely as he was commissioned by Plaid Cymru ] if the data he was using is questionable, then so too must be his conclusions. The data used comes from GERW [ Government Expenditure and Revenue Wales ] there is one for Scotland and N. Ireland. GERW data is collected in the same way and uses estimates, assumptions and adjustments. Professor Richard Murphy, a professor of accountancy, asserts that 90% of the GERW data has no verifiable audit trail. Meaning it cannot be verified how the data was arrived at. So no one really knows what Wales deficit is, or whether there is a deficit at all, no will we know until the Wales government collects its own Wales specific facts.

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In reply to Llew Gruffudd

Undecided

All fair points in the abstract; but they don’t prove that there isn’t a subsidy either - which is where you came in with your reply to Jeff debunking the “myth” of English subsidy. I think the majority of people in Wales need convincing on financial viability and the burden of proof rests there accordingly.

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In reply to Undecided

Llew Gruffudd

Hardly abstract. But you seem to suggest that Professor Doyle being independent, is a reliable source. His figure of a £2.5 billion deficit, uses financial data that HMRC itself concedes understates Wales revenue take. It therefore follows that Prof Doyles therefore over states Wales deficit. This of course is not proof, nor is this platform the place for providing such proof, but taken together my assertion of a deficit myth has more legitimacy than the alternative provided.

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In reply to Llew Gruffudd

Undecided

No, I’m not putting Prof Doyle, the ONS or anyone else on a pedestal here. I am simply pointing out that I can find no convincing analysis (as opposed to assertion) in support of the contention that there is no subsidy. There is plenty supporting the argument that there is one - whether or not one agrees with it. I read your interesting article of last autumn; but the diversions around oligarchs, the City, the Olympics and aircraft carriers rather undermined your arguments I thought.

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Y Cymro

Being part of a union has its advantages lol. Learn our history. We have never been part of any so-called union. Refer to the Annexation of Wales 1535. Look up its definition in the dictionary. Better still, watch the news and see what Russia is attempting to do to Ukraine. Is that a marriage of equals? I think not. Also, you forget one important thing. The billions of gallons of water that's pumped daily from Welsh reservoirs into English homes. For nothing! The only ones who benefit are English water companies, their shareholders , and those parasites in the Whitehall Treasury. So please reframe from using the falsehood how England subsidises Wales.

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Dr Jonathan F Dean

The pylons necessary for these wind farms already exist

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Adrian

Let's see just what levels of idiocy we can achieve before the idiotic Net Zero fairy tale finally falls apart.

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Badger

There's nothing idiotic about weaning ourselves of the despots that control much of the world's oil and gas. Unless you're one of those despots of course. Then it might be annoying.

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Adrian

The best way to do that would be to drill & fractures for the fuel that's under our feet. Net Zero is a fool's errand - demonstrably so.

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Gerallt Llewelyn Rhys.

Just a question that sprang to mind about power. Where is our gas brought ashore?

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Jeff

Milford haven't is the no. 1 import site, planing was approved there as its one of closest sites to international shipping markets! Under 17th century international maritime law, the gas can be sold to a higher bidder in Germany etc until it literally starts unloading. So as west as possible is best for energy security

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Dr Jonathan F Dean

Mainly by pipeline from Norway to the east coast of England

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Dyfrug Caradog-Rhydderch

Wales' gas supplies are brought in through England?

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In reply to Dyfrug Caradog-Rhydderch

Jeff

About 33% is still from north sea Domestic production, believe it or not, but obviously this is declining. The rest is imported by sea or interconnection as mentioned above - there are three main ports in teeside, isle of grain or milford haven(which is still the laregest). Its difficult to know which gas goes where but if you look at a map, you can see most of north, mid and possibly even far west wales doesn't use LNG from milford haven. I don't know why nationalists get their knickers in a twist about who generates or imports which KJ of energy; fully independent nations work closely with neighbours on matters related to infrastructure security and as it leads to improved resilience a d lower costs when multiple parties have a vested interest

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Mab Meirion

An onshore wind carries a hint of flannel up St David's Channel to sweeten Turbinia's semaphored signal to splice the Mainbrace and dance a jig to good old King Neptune, me hearties...

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Undecided

I will have a pint of whatever you are on!

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Mab Meirion

King Neptune: owns the seabed Turbinia: first turbine blade powered vessel Semaphore: should suggest flailing arms/blades Flannel: cockney slang Mainbrace: splicing of, a hard task worthy of a drink

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Y Cymro

Until the Welsh wake up and realise that the Labour party are our enemy will be forever used abused and resource raped. #WelshNot

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Josh.L

Hell no... Welsh people need to wake up... All of these wind farms leaving a horrible scar on our beautiful land, guess who gets all of the profits... Yeah we don't see a penny... The royal family get it, take a percentage, then pass it to Westminster... This is our land not the royal families, not England's... More people should know this! We produce more than three times the energy that we use, yet we get no profit and our bills are the highest...

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Garycymru

This is just more rape of our countryside, and more theft from Wales. Why do we need this power exactly, if we already produce 5 times more electricity than we use?

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Replying to Undecided Cancel

I think you are wrong here. The subsidy probably is not £14.4 billion per annum; but it’s not zero either. Back in 2022, an Irish academic (Doyle) estimated the subsidy to be around £2.5 billion; but based on what he admitted were some fair...

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