The response follows a letter from the Celtic Sea Developer Alliance to the Secretary of State for Energy Security and Net Zero, setting out the importance of the Strategic Spatial Energy Plan in supporting the region’s floating offshore wind industry.
The Celtic Sea Developer Alliance (CSDA) has received a response from the UK Government, following its call for a clear, long-term pathway for the sector. Chaired by Marine Energy Wales, the CSDA represents developers with an interest in developing offshore wind projects in the Celtic Sea.
In a letter sent to Miatta Fahnbulleh MP, Secretary of State for Energy Security and Net Zero, on 29th September, former CSDA Chair Tom Hill, highlighted the importance of the forthcoming Strategic Spatial Energy Plan (SSEP) in shaping the future of floating offshore wind and securing the economic opportunities for Wales and the South West of England.
The letter, written on behalf of the Celtic Sea Developer Alliance, with endorsement from regional industry partners, urged Government to select a pathway that gives the region “the confidence and opportunity to move from today’s first projects to a sustained commercial market.”
The SSEP, developed by the National Energy System Operator (NESO) and co-commissioned by the UK, Welsh and Scottish Governments, will help determine the strategic direction of the UK’s future energy system. The pathways set out different potential configurations of the UK’s future energy system, including the mix of technologies and where generation is best sited to meet future energy demand.
The CSDA’s letter emphasised the need for the Celtic Sea to retain a prominent role in this planning, ensuring the region can progress from its first commercial-scale projects towards a sustained offshore wind market.
The letter outlined three key priorities for the Government:
- A clear long-term pathway for the Celtic Sea, with the SSEP retaining sufficient visibility and optionality for further deployment in the region, which in turn provides confidence to The Crown Estate to enable further leasing rounds.
- Recognition of the potential for cost reduction for floating and deep water offshore wind. Pathway selection should avoid inadvertently embedding a first-of-a-kind disadvantage into long-term strategic planning.
- Alignment with wider economic and industrial growth. Strategic energy planning, network investment, future leasing, revenue support and industrial policy must align to provide a clear, consistent and strong signal to the market.
The letter also highlighted the scale of the economic opportunity. The Celtic Sea Blueprint, a report commissioned by The Crown Estate, estimates that capital expenditure on the Celtic Sea 4.5GW programme could deliver £1.4 billion in gross value added to the UK and an average of 5,300 jobs over five years.
Responding on 20 October, Michael Shanks MP, Minister of State for Energy, acknowledged the potential of floating offshore wind to unlock wind resources in deeper waters, attract investment, create jobs and strengthen the UK’s energy security.
The Minister highlighted that nearly 600MW of new floating offshore wind capacity had been secured through Contracts for Difference Allocation Rounds 6 and 7 over the previous two years, including the first capacity in the Welsh Celtic Sea. He noted that delivering these projects would provide valuable learning to support cost reduction ahead of commercial-scale deployment, alongside contributing to the development of UK ports and supply chains.
The response also recognised the importance of port infrastructure to the sector’s future development, specifically referencing Port Talbot and that Government has committed support for planned investment at Port Talbot.
On the SSEP itself, the Minister acknowledged the need to provide clarity to developers, investors and supply chain businesses as the process progresses, and the importance of a coordinated approach. He said a “range of real-world trade-offs’ must be considered as part of the plan’s development.
Mr Shanks confirmed that the Government is considering the SSEP pathway options which had been received in a report from the National Energy System Operator (NESO), alongside its own analysis, and that a draft of the first SSEP is expected to go to consultation in early 2027, once a pathway has been selected.
Importantly, the Minister provided assurances that the Secretary of State will consider the impacts on wider economic growth and reindustrialisation as well as on energy bills, alongside NESO’s assessment of costs, network and environmental impacts, when reviewing the options.
This response from Government recognises the economic and industrial opportunities associated with floating offshore wind in the Celtic Sea, as well as the importance of providing greater clarity as strategic energy planning progresses.
With the first commercial-scale projects established through Round 5, the decisions made through the SSEP will send a powerful signal to developers, ports, manufacturers, investors and supply-chain businesses about where the UK expects long-term energy markets and subsequently investment opportunities to develop.
The CSDA welcomes this response and will continue to engage with Government and industry to ensure the Celtic Sea’s potential is recognised as the UK develops its future energy plans.