Marine Energy Wales and the Celtic Sea Developer Alliance (CSDA) today welcomed the announcement from The Crown Estate that Floating Offshore Wind Leasing Round 5 is advancing to its final stage – Invitation to Tender 2 (ITT2). This is a critical step forward for the UK’s ambition to lead in floating offshore wind, and a major signal of intent for the Celtic Sea region.
Plans for a new generation of floating wind farms off the coasts of Wales and South West England moved a step closer as the leasing round for three sites in the Celtic Sea entered its final stages.
The Crown Estate – which manages the seabed around England, Wales and Northern Ireland –also revealed that, as part of the process, companies bidding to build the new wind farms shortlisted a range of potential locations in Wales and South West England for the assembly and deployment of the new turbines.
Tender process for new wind farms enters final stages
In February 2024, The Crown Estate embarked on a new leasing round for three areas of seabed off the coasts of Wales and South West England. Known as Offshore Wind Leasing Round 5, the process is expected to award rights for three new floating wind farms in the Celtic Sea, capable of generating enough new renewable energy capacity to power more than four million homes (up to 4.5 gigawatts). The leasing round follows more than three years of engagement with a range of stakeholders including UK and Welsh governments, industry, environmental bodies and other users of the seabed to identify the best locations for the new wind farms and inform the approach to the leasing round.
As part of the process, Bidders have submitted proposals for developing the new wind farms, alongside plans for creating new opportunities for jobs and economic regeneration and working with ports.
Evaluation of these proposals from the first stage of the tender (known as ITT Stage 1) has now concluded, with successful Bidders invited to progress to the final stage (ITT Stage 2). This will involve an auction for the three sites later in the Spring. Winning Bidders are then expected to sign Agreements for Lease this Summer.
New opportunities for UK ports
As part of their bid proposals, Bidders have set out which ports they intend to work with to support the delivery of projects if they are successful. This refers specifically to ‘integration ports’ where turbines will be mounted on large floating platforms before being towed out to sea. Detailed discussions between individual ports and winning Bidders are expected to begin following the conclusion of the tender process. The development of ports to support the new wind farms expected to lead to the creation of significant new opportunities for jobs and economic growth.
The turbines could be as much as 300 metres tall, around the same height as The Shard in London, and sit on a floating platform similar in size to a football pitch.
Bidders have put forward a range of ports at this stage which are in relative proximity to the Celtic Sea. These are (from North to South):
- Pembroke Port (Port of Milford Haven)
- Port of Swansea
- Port Talbot
- Port of Bristol
- Port of Plymouth
- Falmouth Port
- Port of Brest
At this stage, the information provided by Bidders indicates a strong potential for Port Talbot and/or Port of Bristol to play a key role in the delivery of Round 5 projects.
Tom Hill, Chair of the Celtic Sea Developer Alliance, said:
“The Crown Estate’s progress on Leasing Round 5 marks a pivotal moment for floating wind in the Celtic Sea. This milestone brings us closer to realising the economic and environmental potential of offshore renewables — not just for Wales, but for the UK as a whole. It’s incredibly exciting to now know the developers have confidence in regional ports and it is now more crucial than ever the targeted investment happens at pace to sure the facilities are ready.”
Tom Sawyer, Chief Executive at the Port of Milford Haven, said:
“We are pleased to see strong interest from developers to use Pembroke Port for the integration of Floating Offshore Wind (FLOW) turbines. This important milestone brings us a step closer to realising the significant economic opportunity for Wales to capture the supply chain benefits associated with FLOW which will deliver high-quality employment today and for generations to come.“Pembroke Port is the closest deep-water port to the Celtic Sea development sites as well as being home to a highly experienced heavy engineering skills-base. The Port has recently undergone significant development which has laid the foundations for it to play a major role as a leading hub for marine energy and engineering. We will continue to work closely with developers over the coming weeks to understand the port configuration needed to meet their needs.”
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.”
Energy Secretary Ed Miliband said:
“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, delivering on our Plan for Change.“Since taking office, we have approved the world’s largest floating offshore wind farm project, and we are backing the industry even further so this cutting-edge technology can continue to thrive off the UK coastline.
“More floating turbines in our waters means more clean, homegrown power that we control, delivering energy security for families and businesses.”