This week saw the passing of the Crown Estate Act 2025 into law, granting The Crown Estate new powers to borrow and invest up to £1.5 billion over the next 15 years. This legislation will enable The Crown Estate to create environmental, social, and financial value now, and for future generations.
The new powers will allow The Crown Estate to have greater investment flexibility, including an additional £400m for investment in supply chain infrastructure, manufacturing, research, and testing facilities in the short to medium term. The Act also sees the addition of four new commissioners to The Crown Estate Board, with three dedicated to advising on conditions in Wales, Northern Ireland, and England.
The Crown Estate outline the new powers as follows:
- The power to borrow. Until now The Crown Estate has had to sell assets to generate capital for reinvestment. Getting certainty to borrow through the new Act will free up its cash reserves to further invest, for example in accelerating the development of offshore wind; science and innovation; and regenerative agriculture. The Crown Estate expects to start modestly drawing down on these new borrowing powers towards the end of the decade.
- Greater flexibility in how and where it invests such as in digital technologies to support nature recovery. It has also signposted an additional £400m over the short to medium term for investment in supply chain infrastructure, manufacturing, research and testing facilities. This includes a further £15 million to be made available this year through the Supply Chain Accelerator Fund to de-risk the early-stage development of UK supply chain projects servicing the offshore wind sector.
- Four more Commissioners. The new Act increases the maximum number of commissioners on The Crown Estate Board from 8 to 12, bringing it in line with modern corporate governance best practice. Three of the new Commissioners will have an additional responsibility to provide advice on conditions in Wales, Northern Ireland, or England, and further strengthen the Board’s ability to act in the long-term national interest.
Wales holds significant potential for marine energy, and strategic investment in technology, supply chains, and infrastructure by The Crown Estate will be pivotal in accelerating growth and progress in this sector.
Jay Sheppard, Project Manager at Marine Energy Wales said:
“We welcome the passing of the Crown Estate Act 2025, which marks an important milestone in unlocking the UK’s potential for sustainable growth. The Crown Estate’s enhanced borrowing and investment powers will be vital in accelerating the development of offshore renewable energy, including in Wales where the opportunity to deliver clean energy, skilled jobs, and economic growth is significant.
The announcement of additional investment in supply chain infrastructure and the expansion of the Board to better reflect regional conditions is particularly encouraging. For Wales, this represents a real opportunity to advance projects that not only contribute to energy security and net zero targets but also deliver long-term social and economic benefits for coastal communities.
We look forward to working with The Crown Estate to ensure these new powers are leveraged to accelerate investment in Welsh waters and support the growth of our marine renewable energy sector.”
Dan Labbad, Chief Executive of The Crown Estate, said:
“This legislation marks an historic moment in realising The Crown Estate’s full potential to create long-term value for the nation.
“By allowing us to borrow and invest more flexibly, we are future proofing a national institution to have an even greater impact for generations to come as well as increasing how much profit it can generate for public spending.
“We take this responsibility seriously and look forward to working with Government and others over the coming months and years to make this a reality.”
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