Longer leases granted for offshore wind operations

Round one developments were originally granted 22-year leases, while some round two sites being built have leases lasting 40 years. The extension means the eight gigawatts (GW) of offshore wind capacity, allocated in round one and two, will now be able to produce green electricity for longer, giving offshore wind operators greater certainty about future investment, particularly concerning upgrading wind turbines. Some leases granted in round one were due to expire in the early 2020s, but will now have twice as long to run.

The move follows last month's announcement by the Government that it was giving the thumbs up to a massive expansion of the UK’s offshore wind capacity, adopting a plan that will potentially add 25 GW of extra capacity to the eight GW already built or planned.

Rob Hastings, director of the Marine Estate at The Crown Estate, which owns and manages UK territorial waters, said: "Lease term extensions for round one and two demonstrates The Crown Estate’s commitment to driving the UK offshore wind energy industry forward and our commitment to creating a long term sustainable energy source. This is an opportunity for our existing offshore wind operators to plan for the long term future of their projects and to provide further confidence to the supply chain as we enter a period of rapid growth in the industry."

As well as round one and two sites, the extension offer applies to sites recently allocated in Scottish territorial waters.

Round one, launched in 2000 as a demonstration round to enable prospective developers to gain the necessary expertise, has seven fully operational wind sites working and four under construction.

Round two, launched in 2003 with 15 projects being awarded Crown Estate agreements, three of which are now under construction. The current round two leases are 40 years for less than 500 MW capacity and 50 years for larger projects.