The identity of successful bidders to build two huge floating offshore windfarms in the Celtic Sea can be revealed
The Crown Estate has confirmed the selection of Equinor and a joint venture between EDF Renewables º£½ÇÊÓƵ and ESB – Gwynt Glas – as preferred bidders to deliver the new floating windfarms follows the conclusion of its leasing round five.
The floating windfarm from Gwynt Glas is in Welsh waters off the west Wales coast, while the project from Equinor will be off the coast of Cornwall.
Each bidder will pay an annual option fee of £350 per megawatt, or £525,000 per year in total.
However, the process for licensing a third floating offshore windfarm, straddling both English and Welsh waters, failed to secure a successful bidder.
The Crown Estate insisted that it will deliver on the full potential capacity through the deployment of a third site and expects to set out steps by the end of September. It is not clear whether it could develop the scheme itself.
The process, as it stands, will deliver 3 GW in offshore wind capacity, short of its original 4.5 GW target.
Three projects would generate the electricity needs for more than hour million homes and create more than 5,000 direct and supply chain jobs, creating a £1.5bn economic boost.
The successful bidders, based on a best price auction, will now have to go through respective planning processes. They will also be seeking contract for difference support, which will ensure energy produced will be commercially viable, from the º£½ÇÊÓƵ Government.
The port of , which benefits from being in a freeport, has been identified, along with Bristol, for the assembling and maintenance of the floating windfarms.
The consenting process is expected to take three to five years with the windfarms potentially becoming fully operational in early 2030s.
Turbines could be as high as the Shard building in London at 300 metres on floating platforms similar in size to a football pitch. They will be anchored to the seabed via huge chains.
Dan Labbad, chief executive of the Crown Estate, said "It’s now 25 years since we first laid the foundations for a new market for offshore wind in the º£½ÇÊÓƵ, creating the right conditions for a new technology to establish and grow into the world-leading industry we have today.
“The selection of EDF Renewables º£½ÇÊÓƵ, ESB and Equinor to write the next chapter of this story in the Celtic Sea is an exciting reflection of how far we’ve come in that time, and a vote of confidence in this new technology and the long-term future of the º£½ÇÊÓƵ market as a place to invest.
“The Crown Estate exists to create value for our country into the long term. Coupled with our investment of up to £400 million in the supply chain, the steps we have taken to establish floating offshore wind in the Celtic Sea mark a vital contribution to the º£½ÇÊÓƵ’s energy resilience and growth, and countless opportunities for communities and businesses alike.â€
Energy Secretary Ed Miliband said: Floating offshore wind will be transformative for economic growth in Wales and the South West, unlocking thousands of jobs in places like Port Talbot and Bristol, bolstering our energy security and delivering industrial renewal.
"The Celtic Sea has huge untapped potential to support our mission to become clean energy superpower, so we can get energy bills down for good through our Plan for Change.â€
Secretary of State for Wales Jo Stevens said: “This is a hugely significant moment for the clean energy industry in Wales and one which will have a positive impact for generations to come.
“Floating offshore wind will help deliver the transition to clean energy, bring down bills for households and help secure the º£½ÇÊÓƵ’s home-grown energy supply.
“Increased economic growth and thousands of new well-paid jobs will come from this huge vote of confidence in Wales’ energy industry and its workforce.â€
Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans, said: The establishment of floating offshore wind in the Celtic Sea marks the start of a new industrial opportunity for Wales.
" Over the last six months, we have been working through our Task and Finish Group to ensure Wales is in the best possible position to reap the rewards from the energy transition.
"This is an exciting and important step in that journey, and we look forward to working with the industry, The Crown Estate and counterparts in Westminster to write the next chapter in this story."
The new windfarms will be among the largest of their kind in the world. This is expected to be the first phase of a new industry in the Celtic Sea, with the Crown Estate identifying the potential for a further 4-10 gigawatts to be brought to market by the end of the decade.
Matthieu Hue, chief executive of EDF Renewables º£½ÇÊÓƵ, said: I am absolutely delighted to announce that we, together with our project partner ESB, have secured preferred Bidder status with The Crown Estate for an Agreement for Lease as part of the Round 5 Leasing Process.
“We look forward to further developing the Gwynt Glas offshore wind farm, helping the º£½ÇÊÓƵ maintain a market leading position in floating wind and recognising the important role that floating wind can play in the º£½ÇÊÓƵ’s ambition towards reaching net zero.â€
