Press Release
THE CROWN ESTATE OPENS ROUND 3 OF OFFSHORE WINDFARM TENDER
DEVELOPMENT PARTNERS INVITED TO TENDER FOR DEVELOPING ROUND 3 WINDFARM ZONES
26 September 2008
The Crown Estate has today issued an Invitation to Negotiate to registered developers for the Round 3 offshore windfarm leasing programme for the delivery of up to 25 GW of new offshore windfarm sites by 2020. Ninety-six UK and international companies have registered their interest in Round 3, greatly exceeding expectations. This follows the announcement made at the BWEA (British Wind Energy Association) conference in central London on 4 June.
Potential developers who have registered have been invited to bid for one or more of nine (9) development zones identified through the Marine Resource System (MaRS) by The Crown Estate. These zones will be finalised following the Government’s decision on the Strategic Environmental Assessment (SEA) being undertaken by the Department for Business, Enterprise and Regulatory Reform (BERR). Successful bidders will have exclusive rights to develop windfarms in specified zones in partnership with The Crown Estate.
Welcoming the launch of the tender process, Business Secretary John Hutton said: "The launch of The Crown Estate bidding competition is a huge opportunity for investors and developers to play a part in the renewables revolution sweeping the UK. Offshore wind could dramatically increase the amount of electricity generated in this country from clean, green sources."
The selected partners will remain wholly responsible for construction and operation of windfarm sites. The Crown Estate is not intending to take any role in the eventual ownership or operation of offshore windfarms resulting from this programme other than to provide leases of the seabed to operators.
As owner of the seabed, The Crown Estate has a central role in the delivery of offshore wind. Round 3 builds on the 8 GW of offshore windfarm projects currently under development and to be delivered by Rounds 1 and 2 of offshore windfarm development. If successful, the addition of the capacity from Round 3 could lead to a potential total of 33 GW of wind energy coming from offshore wind resources – an important contribution to both reducing CO2 emissions in the UK and the UK’s security of energy supply.
The rapid development of offshore wind capacity is central to the delivery of the UK’s share of the EU target of 20 per cent renewable energy by 2020.
Rob Hastings, The Crown Estate’s Director of Marine Estates, said: “Round 3 is important because it is attracting the attention of UK and international companies to invest in offshore wind projects in UK waters. Attracting such investment is the only way in which government targets can be met, enabling offshore wind to play a full part in the UK’s energy mix – tackling concerns over both energy security and climate change.
“The investment will be very significant and presents opportunities for UK companies in the supply chain, UK ports and other infrastructure support. Early movers could reap the benefits and The Crown Estate will be engaging with these potential players to ensure they are well placed to take full advantage of the opportunities.
“The Crown Estate has worked very closely with BERR and the Round 3 invitation to tender complements the Government’s Strategic Environmental Assessment process that will give greater certainty to both developers and the supply chain.”
The Crown Estate is being advised by Norton Rose LLP, SJ Berwin LLP, Gleeds, Climate Change Capital and PriceWaterhouseCoopers.
Prior Renewables Information
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