Round 1 and Round 2 lease area extensions

Background

Round 1 and 2 offshore wind farm operators have been offered the opportunity to apply for area extensions. This offer is open for any Round 1 and 2 project which is operational or under construction, consented and awaiting construction, or currently awaiting determination of statutory consents. The purpose of offering site area extensions is to take advantage of the possible accelerated delivery of project extensions, in order that construction can be underway before development starts on Round 3 projects.

It is anticipated that successful applications will help to provide a stable flow of construction projects to the offshore wind supply chain as it prepares for Round 3 construction activities. The emphasis of this offer is on the timely delivery of additional offshore wind capacity following government consent. Applications must demonstrate that extensions can be consented, constructed and operational within acceptable timescales.

Expressions of interest

A public notice was published at midday on 29 July 2009 providing information on this leasing round and inviting expressions of interest from parties interested in applying to develop extensions. The opportunity to register an expression of interest was open until 9 September 2009 for Round 1 and 2 projects which have reached the following development status:

• Operational
• Under construction
• Consented and awaiting construction or
• Currently awaiting determination of statutory consents.

A project to be extended will have applied for statutory consents (under Section 36 of the Electricity Act 1989) by the closing date for extension application under this process.

Tender process

The closure of the expressions of interest period was followed by the opening of the tender from 18 September to 18 December 2009. Following the close of the tender, a detailed assessment of the bids was carried out and awards were made in May 2010 (further information is below).

Criteria

Whilst the nature of specific site extensions is likely to vary, the following general principles apply:

• The proposed extension must share a substantial part of one or more boundaries with the original site.
• No maximum size of extension is set, however the scale of the extension should be appropriate for the scale of the original site.
• The extension proposal should demonstrate synergies with the original site, e.g. of construction, operation, improvement of economics and / or grid connectivity.
• The extension application can be from either the tenant of the original wind farm (i.e. the legal entity which has signed the agreement for lease or lease for the original project), or a different or new company or SPV which may or may not contain any companies present within the ownership of the tenant of the original site.
• If the applicant is anything other than the same legal entity as the tenant of the original site, the applicant must supply as part of the application process a written agreement stating that the original tenant expressly does not object to the proposal. This is not needed as part of the EOI.
• No extension will be permitted to encroach within a radius less than five kilometres of any nearby Round 1 or 2 sites, except with the express agreement of the tenant of the existing nearby site. Such permissions do not need to be provided as part of the EOI.
• The proposed extension must not adversely affect delivery or operation of the original site or any neighbouring site.
• The applicant must demonstrate the ability to deliver the extension project to an agreed timescale.

The offer will apply whether the lease for the original project has been signed or an agreement for lease is in place. Successful applications will be awarded agreements for lease based on the current Round 2 documents, with the extension forming a new, separate agreement with The Crown Estate.

For drafts of the current Round 2 documents please follow the link:

• Rounds 1 & 2 Downloads

Stakeholder Engagement

The EOI process will inform a subsequent exercise of stakeholder engagement running in parallel to the submission and assessment of bids. Key stakeholders will be informed of our position in mid September and where appropriate given the opportunity to discuss further. The representations made by stakeholders in respect of these issues will be taken into consideration and contribute toward the assessment and subsequent allocation of sites. Whilst the point at which individual issues come to light is uncertain, it is intended that the opportunity to discuss such matters will remain open from mid September until the announcement of awards in April 2010. It is anticipated that information and dialogue received from stakeholders will be ongoing and continue to feed into the process of site allocation.

Consents

A large body of environmental data has been collected at previously allocated wind farm sites and through the recent Offshore Energy Strategic Environmental Assessment (SEA). Whilst we are committed to exploring the opportunities for additional capacity that site extensions could deliver, we are aware of potential constraints on the further expansion of existing sites and we are therefore committed to a careful consideration of extension applications before making any new site awards.

Following award of site options to successful applicants, developers will need to carry out full environmental impact assessments in support of applications for statutory consents from government. In accordance with the findings of the Offshore Energy SEA any proposed extension will be given careful, site-specific evaluation through the planning process and the award of a Crown Estate lease to allow construction will be dependent on the receipt of consents from government.

Awards

Following the conclusion of the tender process, The Crown Estate made the following awards of extension projects in May 2010:

   Round 1 & 2 Site Extension Awards PDF (360 KB)