The Crown Estate says the outcome of the Round 4 leasing process, which will see annual option fee payments from developers hit £879m, is a “significant vote of confidence” in the UK offshore wind industry.
Six sites totalling just under 8GW were awarded in the round, with BP, RWE and Total dominating.
All six projects will now go into a plan-level HRA, which is expected to take around a year.
Following the conclusion of the Round 4 process through the HRA, option fees will contribute to the Crown Estate’s annual profits, “100% of which are paid to the Treasury for the benefit of the nation”, the seabed landlord said.
“Through an open market process, successful bidders have committed an initial investment of £879m in option fee deposits. This signals a significant vote of confidence in the UK’s world leading offshore wind sector and Government’s commitment to grow the low carbon economy,” said the agency.
Crown Estate chief executive Dan Labbad added: “Round 4 offers a major boost for the UK’s green economy and subject to environmental assessments, these projects have the potential to create new jobs and deliver green and affordable energy to millions more homes.
“The task now is to work together across the sector, to coordinate the development we need offshore, in a way which is sensitive to the importance of biodiversity in our precious marine environment and brings new employment opportunities and growth to a range of communities across country.”
Energy Minister, Anne-Marie Trevelyan said: “The UK is a world leader in offshore wind energy, with the Prime Minister’s Ten Point Plan laying out a bold ambition to produce enough offshore wind to power every home in the UK.
“Energy delivered by the new offshore wind projects in The Crown Estate’s latest leasing round will help power seven million homes, driving forward our commitments to eliminate the UK’s contribution to carbon emissions by 2050, creating thousands of new jobs and ensuring Britain builds back greener.”
The HRA process is expected to conclude in Spring 2022. Subject to the outcome, developers would then be granted an Agreement for Lease by The Crown Estate and be able to progress projects through the planning process.
“The projects could begin to generate clean electricity by the end of the decade,” added the Crown Estate.