Welcome to The Crown Estate
Working with us
We take a highly collaborative approach to the wave and tidal sector.
Successful development of wave and tidal energy is likely to require considerable collaboration across industry and government. Our approach focuses on bringing together interested parties in industry, Government and elsewhere.
There is a range of opportunities for other organisations to work with us, as tenants for wave or tidal project sites, contractors for our work on enabling actions or in other capacities.
- Further Scottish leasing
The Scottish Government has a range of policy measures to encourage development of wave and tidal projects in Scottish waters. One such measure is the Saltire Prize, which we are supporting by providing leases for project sites.
The Saltire Prize
In April 2008 the Scottish Government launched the Saltire Prize, which was introduced as follows:
"£10 million will be awarded to the team that can demonstrate in Scottish waters, a commercially viable wave or tidal stream energy technology that achieves the greatest volume of electrical output over the set minimum hurdle of 100 GWh over a continuous two year period using only the power of the sea."
For details of the Saltire Prize, including guidelines on the competition, please visit the Scottish Government website.
Project eligibility
Wave and tidal energy projects at sites leased by The Crown Estate in Scottish waters may be eligible to compete for the Saltire Prize. These include projects in the Pentland Firth and Orkney waters.
In March 2010, we jointly announced with the Scottish Government a consultation on proposed geographic areas for lease. Subsequently, Marine Scotland prepared a scoping study and regional locational guidance on these areas.
In response to feedback from the consultation and discussions with the industry and other stakeholders, we designed a new approach to leasing for Saltire Prize projects. This was announced in September 2010.
Saltire Prize projects
Through the competition framework, companies are invited to apply for projects of up to 30 MW installed capacity. Projects may be proposed with phased programmes, with the first and subsequent phases being fractions of the total capacity.
Recognising the potential service life of a project and the corresponding requirement for finance, leases may be awarded with commercial-length terms, including an operating period of up to 25 years.
Agreements for lease and leases may be awarded for projects anywhere in Scottish territorial waters, except:
- where development is unlikely to be appropriate, for example for environmental reasons. This is because such projects are unlikely to obtain consents or proceed to construction. Developers are recommended to consult with the appropriate regulatory authorities with responsibility for consenting (for example, Marine Scotland)
- within strategic areas for wave and tidal development. In Scottish waters, one such area is currently defined: the Pentland Firth and Orkney waters. The boundary of the Pentland Firth and Orkney waters strategic area was updated in April 2012. We anticipate defining other strategic areas in future, and leasing in strategic areas will be managed separately.
To help identify suitable project sites, particularly those which it may be possible to develop within the Saltire Prize timeframe (see the Saltire Prize guidelines), developers are recommended to refer to the regional locational guidance.
Leasing competition framework
Applications for Saltire Prize projects are being managed using a competition framework that features a series of six-month application windows. The first application window ran from October 2010 to March 2011, the second from April 2011 to September 2011 and the third from October 2011 to March 2012. The fourth application window opened on 27 April 2012 with a deadline for expressions of interest of 18 May 2012.
To co-ordinate the bidding process, we are using an e-tendering portal. This may be accessed via the following link:
Each application window contains the following stages: expressions of interest, pre-qualification, tendering, interviews, negotiation and award. It is possible that agreements for lease resulting from the fourth application window could be awarded in September 2012.
Given the Saltire Prize timeframe and the time anticipated to be required for project development, consenting and construction, developers are recommended to apply in the earliest possible application window.
We will monitor and assess the level of interest in the competition and reserve the right to change the competition process.
- Demonstration project leasing
Technology testing and demonstration projects are key to the emerging wave and tidal industry. In addition to letting sites to established facilities, we also offer leases for test and demonstration projects to development companies.
Test facilities
We strongly encourage organisations wishing to test prototype wave or tidal technologies to consider using existing facilities that have been set up specifically for the purpose. In the UK, these include:
- The National Renewable Energy Centre (NaREC), in Blyth, Northumberland (wave and tidal energy technologies)
- Falmouth Bay Test Site (FaBTest), Cornwall (wave energy technologies)
- The European Marine Energy Centre (EMEC), at Orkney (wave and tidal energy technologies)
- Wave Hub, off Hayle in Cornwall (wave energy technologies)
These facilities may offer specialist expertise in testing, including research support, plus pre-consented and grid-connected sites in order to help developers save time and costs as well as mitigate risks.
We are occasionally approached by organisations with ideas to create additional facilities. From April 2012, organisations may bid for leases for managed test and demonstration facilities through the leasing process described below.
We also recognise that some developers would prefer to develop their own dedicated test or demonstration projects. To cater for this interest, we offer demonstration project leases to development companies.
Demonstration projects
Through the competition framework we announced in September 2010, companies are invited to apply for projects of up to 10 MW installed capacity. Projects may be proposed with phased programmes, with the first and subsequent phases being fractions of the total capacity.
Recognising the potential service life and financial requirements of a project, leases may be awarded with commercial-length terms, including an operating period of up to 25 years. Shorter lease terms will be appropriate for certain projects, such as testing a single prototype.
Agreements for lease and leases may be awarded for projects anywhere in UK territorial waters, except:
- where development is unlikely to be appropriate, for example for environmental reasons. This is because such projects are unlikely to obtain consents or proceed to construction. Developers are recommended to consult with the appropriate regulatory authorities with responsibility for consenting (for example, Marine Scotland)
- within strategic areas for wave and tidal development. Across UK waters, two such areas are currently defined: the Pentland Firth and Orkney waters (Scotland) and Rathlin Island and Torr Head (Northern Ireland). The boundary of the Pentland Firth and Orkney waters strategic area was updated in April 2012. We anticipate defining other strategic areas in future, and leasing in strategic areas will be managed separately.
Leasing competition framework
Applications for Saltire Prize projects are being managed using a competition framework that features a series of six-month application windows. The first application window ran from October 2010 to March 2011, the second from April 2011 to September 2011 and the third from October 2011 to March 2012. The fourth application window opened on 27 April 2012 with a deadline for expressions of interest of 18 May 2012.
To co-ordinate the bidding process, we are using an e-tendering portal. This may be accessed via the following link:
Each application window contains the following stages: expressions of interest, pre-qualification, tendering, interviews, negotiation and award. It is possible that agreements for lease resulting from the fourth application window could be awarded in September 2012.
We will monitor and assess the level of interest in the competition and reserve the right to change the competition process.
- Northern Ireland leasing
We are engaging with key stakeholders as we prepare to offer development rights for tidal projects and offshore wind projects off Northern Ireland.
Following a 'design discussion' in spring 2011, we launched a commercial leasing round for tidal stream energy projects in Northern Ireland waters on 15 December 2011.
The competition is for projects of a range of sizes up to 100 MW in the Rathlin Island and Torr Head strategic area, which is off the north east coast of Northern Ireland.
The deadline for expressions of interest was Friday 27 January 2012.
For further details, please visit the press releases:
The Crown Estate opens up Northern Ireland offshore renewable energy programme to industry
15 December 2011For wave and tidal demonstration projects up to 10 MW capacity, elsewhere in Northern Ireland waters and indeed other parts of UK waters, we are continuing to offer leases according to an existing competition framework. This is described on:- Official notices
Tidal leasing in Pentland Firth and Orkney Waters area: Notice of The Crown Estate's intention to consider varying the boundary of a tidal energy project agreement for lease.
Following a competitive leasing round which concluded in 2010, we have entered into agreements for lease for wave and tidal energy projects with a potential capacity of up to 1,600 MW in the Pentland Firth and Orkney waters.
The successful bidders have been developing their projects since they received agreements for lease. One development company, Cantick Head Tidal Development Limited, has discovered that some parts of the site at Cantick Head appear to be unsuitable for development because of the combination of energy resource and seabed bathymetry conditions. These conditions were unknown at the time of the leasing round but have been discovered as part of the development process. There is limited scope within the area covered by the existing agreement for lease for the developer to lay out a project which will be viable for development.
The Crown Estate has concluded that there is merit in considering allowing a variation to the boundaries of this agreement for lease area, relocating up to a maximum of 80 per cent of the area, in order to enable this project development to proceed to a point where an application for consent to build it can be submitted to Marine Scotland, the competent authority for such decisions. Any relocation would not result in an increase in the total area of seabed to be covered by the project. Further information about the proposed variation may be obtained by contacting:
John Robertson
Senior Development Manager (Wave and Tidal)
Telephone: 0131 260 6096
Email: John.Robertson@thecrownestate.co.uk
