The potential of Celtic Sea has become a burden. On the cusp, poised, readying and hopeful… It is entirely understandable to be weary of the talk, and wary of the risk. Leasing Round 5 is now simply a waiting game to find out if lease options are awarded to all three 1.5GW sites. Amongst all the industry chatter, even partial subscription with long-term intent would be a major step for regional development. Progress with the Test and Demo projects is a little more public – and highly significant if it draws in investment to build capacity on the ground. So, whisper it, but there is a quiet confidence that the Celtic Sea’s “potential” tag will soon be shaken off.
Until then, here’s a digest of two key announcements and a reminder of the value of “no regret” investment before our quarterly(ish) overview of the development pipeline, opportunities and upcoming events.
Firstly, The Crown Estate (TCE) announced that the tender process for the first three commercial sites (4.5GW, LR5) in the Celtic Sea is now entering its final stages. TCE’s process for leasing round 5 is firmly on track and now moves to ITT2’s rising-clock auction. So “this summer” for when lucky winners of the three 1.5GW sites are named. Then, we trust, moving quickly to join efforts to build regional capacity in workforce, supply chain, infrastructure and ports. This announcement also revealed six ports assessed by bidders as having suitability for integration. Highlighting the good sense of a multi-port approach, as set out by CSP in the Great South West’s recent statement on a multi-port approach.
Secondly, the Prime Minister’s announcement of £300 million for Great British Energy to invest in offshore wind supply chains is significant. Details yet to emerge on precisely how promised cash will trickle down and the industry’s appetite to match. However, the Industry Growth Fund will be key, in alignment with the Offshore Wind Industry Council’s Industry Growth Plan (IGP). So RenewableUK/OWIC’s recent consultation to refresh the IGP with more focus on where offshore wind could prompt growth around the UK was welcome. Several stakeholders gave their time to explain the Celtic Sea region’s existing strengths – and a more forward-looking approach from “boots on the ground” is key for offshore wind to change gear from analysis to investment.
Finally, FLOW has prompted “no regret activity” in our region which will withstand any industry ups and downs. The very definition of this is the ongoing work to upskill people across Cornwall, South Wales and the South West. It was brilliant to see both Neath and Port Talbot College Group and Pembrokeshire College win TCE Accelerator funds. And the superb work by colleges, independent skills providers, universities and Job Centre Plus is striking. FLOW has been a stimulus for this; enabling localised skills development and supporting the pathways of individuals into better careers. Helping stitch together collaborative effort’s is CSP’s FLOWMark – the intent is for this to provide an interface with developers and skills providers so that FLOW can maximise root-and-branch efforts to develop our workforce.
DEVELOPMENT PIPELINE
- Test and Demo (T+D).
Positive news for Flotation Energy’s WhiteCross project with consent hard-won for cable land-fall into North Devon. BlueGem’s Erebus and Floventis’ Llyr1(all 100 MW) are also, we understand, developed to the point where they could bid into this summer’s AR7 CfD auction.
It’s the old WaveHub site (32MW) off North Cornwall however, today known as Hexicon’s Twinhub, that has; consent, lease and a Contract for Difference (CfD) (from Allocation Round 4). So we wait with bated breath on a final investment decision for what could be the first FLOW project in England – and a genuine boost for Cornwall.
- Leasing Round 5
As per their recent announcement, The Crown Estate’s process for leasing round 5 is firmly on track and is now moving to ITT2’s “rising clock” auction. Lease winners to be named later in the summer.
- Leasing Round 6 and Beyond
The latest remains from November 2024 in TCE’s “Future of Offshore Wind” and “Marine Delivery Routemap” – with notable “areas of opportunity” to the south and west of England.
OPPORTUNITIES
No commercial contracts in the Celtic Sea as yet; they’ll be on PIRANHA when they eventually start to flow.
The second round of The Crown Estate’s Supply Chain Accelerator Fund is open til June 27th – for those looking to develop investment propositions. Be sure to be familiar with the Clean Industry Bonus scheme and science based targets if you’ve scale-up ambition for offshore wind.
UPCOMING EVENTS
Nothing in the region but, nationally; RUK’s GOW25 is a big hitter and OEUK’s events promise deep insight in support of their excellent recent report:
- OEUK Offshore Wind Insight Roadshow on 4th and 10th June in London (£93)
- Global Offshore Wind 2025 on 17-18th June in London (£295+)
