The Crown Estate has concluded the first phase of a two-stage tender to award three 1.5GW seabed plots in the Celtic Sea to floating wind developer this summer.
The completion of ITT1, in which bidders submitted proposals for wind farms alongside plans for working with ports and creating socio-economic benefits, means successful bidders will now progress into an ‘ascending clock’ auction of financial bids (ITT2) expected in June.
Winning bidders are then due to sign Agreements for Leases in late summer before the floaters hit the water in the mid-2030s.
Research published by the Crown Estate showed project construction could create up to 5,000 jobs and generate an additional £1.4bn for the UK economy.
The seabed landlord revealed that seven ports had been put forward by bidders in ITT1. However, the information provided indicates a “strong potential” for Port Talbot and/or the Port of Bristol to play a key role in the delivery of Round 5 projects.
The three sites are expected to be the first phase of commercial deployment in the Celtic Sea after the Crown Estate outlined the spatial potential for a further 12GW of new capacity, of which 4GW-10GW could be leased by the end of the decade.
Energy secretary Ed Miliband said: “The UK is a world leader when it comes to floating offshore wind, and by unlocking the untapped potential of the Celtic Sea we will reap the benefits of economic growth and thousands of jobs in Wales and the South West.
“More floating turbines in our waters means more clean, homegrown power that we control, delivering energy security for families and businesses.”
Crown Estate Marine MD Gus Jaspert said: “Developing this new technology in the Celtic Sea will open up transformational opportunities for new jobs, investment and growth across Wales, South West England and beyond.
“We look forward to continuing our work with governments and the industry to secure the investment and commitment needed as we move forward, for the benefit of coastal communities and the UK as a whole.”
RenewableUK Deputy CEO Jane Cooper added: “We welcome this step forward toward the crucial final stages of this landmark leasing round which will kickstart the industrial development of floating wind projects and supply chains at scale in the UK.”