The second phase of The Crown Estate’s Offshore Wind Leasing Round 5 has officially been launched, with bidders invited to set out their plans for delivering new wind farms.
First set out in December 2023, the plans represent a new chapter for the UK’s offshore wind industry, with the potential to see new floating turbines generating enough renewable energy to power more than 4 million homes (up to 4.5 gigawatts).
The new wind farms also open up opportunities for thousands of on-shore jobs and new investment through the supply chain.
Round 5 has become the first leasing round to be brought to market with an agreed plan for connecting the new windfarms to the UK’s electricity grid, with the Electricity Systems Operator (ESO) today publishing its Celtic Sea network design recommendation.
The second phase of the leasing process, which got underway on 8th August 2024, will see Bidders set out plans for delivering the new wind farms, as well as details on how their plans will support the delivery of wider social and economic benefits for onshore communities. It follows a series of assessments and ongoing surveys by The Crown Estate to ensure any impacts on the marine environment are properly managed.
Research published in February this year by The Crown Estate showed that the supply chain for new Celtic Sea floating wind farms could create more than 5,000 new jobs and deliver a £1.4 billion boost to the economy.
Bidders are being encouraged to be ambitious in developing their proposals, which could include initiatives linked to skills development, apprenticeship opportunities, community impact, sustainable procurement and nature restoration. Bidders will also need to outline how they intend to work with ports in the execution of their plans, identifying both a primary and alternative port that they propose to use for the assembly of the windfarms. These plans will then form contractual obligations as part of the lease agreement for successful bidders.
This latest milestone follows the conclusion of the initial Pre-Qualification Questionnaire (PQQ) in June 2024. The response from offshore wind developers to this stage demonstrated a clear interest in Round 5, with The Crown Estate able to move forward with a strong pool of Prequalified Bidders, all of whom have demonstrated their suitability to proceed.
Bidders are expected to be notified of the outcome of this next phase, also known as Invitation to Tender (ITT) Stage 1, in early 2025.