Crown Estate provides funding for wind farms – Daily Business

Britain’s offshore wind industry is benefiting from new funding received from the King’s Crown Estate under new legislative powers.

Following recent changes in the law the estate is investing £400 million in the supply chain for wind turbines at sea.

Previously, the Crown Estate had to sell assets to generate capital for investments but this new flexibility means it can now use its cash reserves to invest in energy and decarbonisation projects.

The Crown Estate owns the seabed surrounding the UK and charges renewable energy firms money to develop projects in England, Wales and Northern Ireland. A separate body, Crown Estate Scotland, handles the Scottish seabed.

Selling leases for wind farms is a key element in the Crown Estate’s profits which doubled in the 2023-24 financial year.

The Crown Estate wants to raise the current 11.8GW of power provided by wind by an additional 20 to 30GW by 2030, enough to power all 28 million households in the UK.

The funding from the estate is part of a £1 billion boost to the industry announced by the UK government in recent weeks that includes £300m from investment vehicle GB Energy and a similar sum invested from the private sector.

It is expected that most of the new funding will be used to upgrade the infrastructure at ports to enable them to handle ever-larger turbines.

While Denmark and Germany supply many of the wind turbine components, many of the towers, cables and other parts are made in the UK, though often by overseas-owned companies.

RenewableUK recently stated that the sector emplys more than 40,000, though this figure is said to be based on data that is years old and is an under-estimation of the true scale of the industry.

Announcing the £400 million investment, Ben Brinded, head of investment at the Crown Estate, said: “We will not unlock the full economic, social and environmental benefits of offshore wind without collaboration and investment into the UK supply chain.”

Labour’s publicly-owned energy investment vehicle, GB Energy, sees floatijng offshore wind turbines as major opportunity.

Offshore Energies UK (OEUK) called the latest investment a positive signal, but urged the government to use it as a springboard for much wider action.

OEUK sustainability and policy director Mike Tholen said: “Many parts of the UK supply chain remain underfunded and under pressure. To scale up and meet our world-leading offshore wind targets, this £1 billion in targeted investment is needed.

“We also need greater clarity on how much of this funding will reach UK-based companies, and how projects will navigate the Contracts for Difference (CfD) process to access it.

“This must now be a catalyst for stronger collaboration between government and industry to unlock investment, create jobs, and build a homegrown energy future that delivers long-term benefits for the UK.”