Home » Could 2025 be the turning point for floating offshore wind in the Celtic Sea?

Written by Charlie Allen, Floating Offshore Wind Project Manager at Marine Energy Wales

© Credit: Blue Gem Wind

This year, floating offshore wind (FLOW) in the Celtic Sea is entering a new phase, with 2025 expected to be a pivotal year for the sector and the region. Key milestones will include the UK Government’s Contracts for Difference Allocation Round 7 and the outcome of The Crown Estate’s Floating Offshore Wind Leasing Round 5 anticipated in the spring. These developments will be crucial in shaping the future of FLOW in the region. As the sector makes headway, this article explores the key actions required to maintain momentum and investor confidence as we enter this critical phase.

1. Targeted Revenue Support for Test and Demonstration (T&D) Projects

For a positive start to the year, the UK Government need to send clear and positive signals through the announcement of targeted revenue support for test and demonstration projects to enable these essential stepping-stone projects to progress. Deploying test and demonstration projects ahead of the larger commercial wind farms, will lay the foundation for the Celtic Sea to emerge as a major hub for FLOW. This is a significant opportunity for regional economic growth in Wales and the Southwest, potentially creating thousands of skilled jobs through supply chain opportunities (Celtic Sea Blueprint, The Crown Estate, 2024). Mobilising the workforce will be key to securing the maximum socio-economic benefit in the region from FLOW in the Celtic Sea.

2. The Crown Estate Leasing Round 5 Auction

The conclusion of FLOW Leasing Round 5 in spring will mark a highly anticipated milestone in the Celtic Sea with the award of the three Project Development Areas (PDAs). The award of the PDAs is likely to see 3 projects emerge in the Celtic Sea, ramping up engagement, activity, and investment in both Wales and the South West. Marine Energy Wales will continue to work closely with the Celtic Sea Developer Alliance and the Celtic Sea Cluster to strengthen collaboration between developers and other key stakeholders, accelerating progress in Celtic Sea floating offshore wind development.

3. Regional Port Investment

We urge the UK Government to prioritise delivering the FLOW Manufacturing Investment Scheme (FLOWMIS) funding. ABP Port Talbot and Cromarty Firth will need sufficient time to invest in port development and further delays to the delivery of this will put expansion plans at risk of not being delivered.

The conclusion of Round 5 is likely to be a positive signal for ports in the Celtic Sea region. However, ports cannot rely on these projects alone and need visibility of planned future FLOW leasing rounds in the Celtic Sea.

Upgraded port infrastructure is essential to enable supply chain investment for the development, construction, and maintenance of FLOW projects. The Celtic Sea region’s existing industrial capability and strengths compliment FLOW manufacture, assembly and maintenance. Public and private investment will be essential to ensuring these upgrades are delivered in time to support the deployment of FLOW in the Celtic Sea.

As of October 2024, the Celtic Freeport is now open for business, following its approval by UK Government. In Freeport designated areas, businesses can benefit from tax relief to attract investment, trade and jobs. The long-term purpose of Freeport status is to regenerate areas that need it most, and we hope to see strong partnerships formed in 2025 between the freeport and industry to support strategic investments into infrastructure, skills and workforce development, and innovation initiatives in the region.

4. The Celtic Sea Pipeline

Following the publication of The Crown Estate’s Future Offshore Wind Report and the Marine Delivery Route Map in 2024, the industry now requires further clarity on the size and timing of future Celtic Sea leasing rounds to be announced in 2025. A sustained drum-beat pipeline of leasing rounds is crucial for providing certainty to developers and investors. A consistent pipeline of seabed leases will strengthen investor confidence and support the expansion of key infrastructure, including ports, supply chains, and a skilled workforce in the region.

5. The Celtic Sea Developer Alliance

Since 2020, the Celtic Sea Developer Alliance has worked closely with key players to spearhead the opportunity for FLOW in the Celtic Sea. The Celtic Sea Developer Alliance facilitates collaboration between developers, and acts as a unified voice to influence policy, and coordinate and strengthen stakeholder engagement. The Alliance will continue to build upon these goals throughout 2025, pursuing collaborative opportunities to deliver benefit to the people of Wales and the Southwest.

Conclusion

2025 promises to be a transformative year for FLOW in the Celtic Sea, with pivotal decisions and investments setting the stage for the region’s long-term success. Revenue support for test and demonstration projects, and clarity on future leasing rounds are all critical to ensuring momentum. Alongside this, port development and infrastructure upgrades must be prioritised to unlock the region’s full potential and deliver economic benefits for Wales and the Southwest.

The Celtic Sea Developer Alliance will play a vital role in driving progress by fostering collaboration, influencing policy, and advocating for the needs of the sector. With sustained support, strategic investment, and a commitment to regional development, the Celtic Sea has the opportunity to establish itself as a leading hub for floating offshore wind, driving energy transition while creating significant socio-economic value. 2025 is the year to build on these foundations, turning potential into action.

Learn more about the Celtic Sea Developer Alliance by visiting our webpage, or feel free to get in touch with MEW’s FLOW Project Manager : charles.allen@marineenergywales.co.uk