What’s Happening: Key Facts
- Award of the Third Celtic Sea Floating Wind Site
- Ocean Winds (a 50‑50 joint venture between EDP Renewables and Engie) has been awarded rights to develop a third floating offshore wind site in the Celtic Sea. (The Crown Estate)
- The lease was granted by The Crown Estate, following a direct award process (not part of the initial auction) under the UK’s Procurement Act 2023. (Offshore Wind)
- A formal Agreement for Lease between Ocean Winds and The Crown Estate is expected to be finalised by Spring 2026. (The Crown Estate)
- Project Scale & Location
- The development area is 358 km² in size. (Ocean Winds)
- Water depths in this area range from 71 to 88 metres, making it suitable for floating wind platforms. (Ocean Winds)
- Once fully built (possibly in phases), the project could reach 1.5 GW of installed capacity. (World Energy)
- Economic & Social Commitments
- As part of Crown Estate’s terms, Ocean Winds must commit to onshore economic benefits, including creating apprenticeships and prioritising employment among young people (10% of employees aged 19‑24 must not be in education/employment/training). (The Crown Estate)
- If the full Round 5 capacity (which includes this site) is built out, the estimate is 5,000+ jobs and ~£1.4 billion economic boost. (NOF)
- Ports are expected to play a key part in the project: Port Talbot and Port of Bristol have already been identified as potential bases for assembly / deployment. (The Crown Estate)
- Ocean Winds’ Experience & Strategy
- Ocean Winds has significant experience in floating wind: they were behind WindFloat Atlantic (the world’s first semi‑submersible floating wind farm) in Portugal. (Ocean Winds)
- They also have ongoing floating wind development in other countries (e.g., South Korea, France). (Ocean Winds)
- In the UK, Ocean Winds already has experience with fixed-bottom offshore wind (e.g., Moray East and Moray West). (Ocean Winds)
- Strategic Importance & Risks
- The award helps deliver all three sites offered in Round 5 for floating wind in the Celtic Sea; the total of the three is up to 4.5 GW. (Offshore Wind)
- The Crown Estate took steps to “de-risk” the Round 5 opportunity: for example, planning grid connections with the National Grid / system operator and doing environmental / technical pre-consent surveys. (The Crown Estate)
- The project could be an important part of the UK’s net zero / energy transition goals, especially boosting clean energy capacity off the southwest of England and Wales.
- Lease Costs
- Ocean Winds will pay £350 per MW per year for the lease (excluding VAT), the same rate as the other two developers awarded in Round 5. (The Crown Estate)
- For a 1.5 GW site, that works out to a substantial annual option fee. (The Crown Estate)
Why This Matters
- Floating Wind Potential: Because the Celtic Sea has deep water, floating turbines are more viable than fixed-bottom foundations. This award underlines the UK’s strategy to tap into more challenging but high-potential sites.
- Industrial Growth: This project could help develop a local floating wind supply chain, including wind turbine assembly, port infrastructure, and maintenance capabilities — especially in southern Wales and southwest England.
- Energy Security & Green Power: 1.5 GW is a big capacity, contributing significantly to the UK’s clean energy ambitions. More floating wind means more renewable electricity, which helps with decarbonisation and reducing reliance on fossil fuels.
- Jobs & Economic Impact: With thousands of jobs and billions in economic benefit projected, the project is a major regional economic opportunity, not just a power-generation one.
- Technology Leadership: Ocean Winds is demonstrating global leadership in floating wind. Their track record (like WindFloat Atlantic) gives confidence that they can deliver.
- Policy Signal: The Crown Estate’s decision also shows strong public-sector support for floating technology — including derisking initiatives — signalling confidence in long-term floating wind in the UK.
Challenges & Risks
- Technical Risk: Floating wind is still less mature than fixed-bottom wind, so there are engineering, maintenance, and cost risks.
- Grid Connection: Building out the infrastructure to connect this site to the main UK grid could be complex and expensive.
- Regulatory / Permitting Risk: Environmental assessments, marine licensing, and local stakeholder support could be hurdles.
- Market Risk: The future revenues will depend on power prices, contracts (PPAs), and the cost trajectory of floating wind tech.
- Competition: Other developers (like Equinor and Gwynt Glas) are also building in the Celtic Sea — which could drive competition for resources (e.g., port space) or political support.
Comments from Key Players
- Craig Windram (CEO, Ocean Winds): He expressed pride in being selected, highlighting their deep experience with floating wind and their commitment to deliver a project at industrial scale. (Ocean Winds)
- Dan Labbad (CEO, The Crown Estate): He said he was “incredibly proud” to deliver on the promise to secure a developer for the third site, and welcomed Ocean Winds as a world-leading company to boost UK floating wind capacity. (The Crown Estate)
- Ed Miliband (UK Energy Secretary): He framed the project as not just about clean power, but also about industrial renewal and job creation in Welsh and Southwest English communities. (The Crown Estate)
- Ports Groups:
- British Ports Association noted that this project represents a huge opportunity for ports in Wales and the southwest to become hubs for floating wind assembly and deployment. (The Crown Estate)
- UK Major Ports Group emphasized the role that ports will play: delivering clean energy is not only about turbines, but also about building a new industry. (The Crown Estate)
- Here’s a structured overview of case studies and expert commentary around Ocean Winds securing its floating offshore wind (FLOW) project in the Celtic Sea.
Ocean Winds Celtic Sea Floating Wind Project — Case Studies & Comments
Ocean Winds, the joint venture of EDP Renewables and Engie, has been awarded the lease to develop a third floating offshore wind site in the Celtic Sea. This forms part of the UK’s strategic Round 5 floating wind programme.
CASE STUDY 1: WindFloat Atlantic — Lessons for the Celtic Sea
Scenario:
- Ocean Winds previously developed WindFloat Atlantic in Portugal, the world’s first semi-submersible floating wind farm.
Key Insights:
- Demonstrated technical feasibility of floating wind at deep-water sites (60–100m depth).
- Provided experience in grid connection, turbine installation, and maintenance logistics, directly applicable to the Celtic Sea.
Comment:
This experience positions Ocean Winds to deliver efficiently and reduce project risk. The UK project leverages prior innovation for faster deployment.
CASE STUDY 2: Celtic Sea Lease & Economic Impact
Scenario:
- Project area: 358 km²; water depth: 71–88m.
- Potential capacity: ~1.5 GW, enough to power ~1.3 million homes.
- Crown Estate conditions include apprenticeship and local hiring targets, especially for 19–24-year-olds not in education or employment.
Impact:
- Potential creation of 5,000+ jobs across construction, ports, and maintenance.
- Estimated £1.4 billion economic boost regionally.
Comment:
The project is as much an industrial development programme as a renewable energy project, supporting UK jobs and ports infrastructure in Wales and the southwest.
CASE STUDY 3: Ports & Supply Chain Integration
Scenario:
- Ports such as Port Talbot and Port of Bristol may serve as hubs for turbine assembly, floating platform staging, and maintenance.
Insights:
- Floating wind requires large assembly areas due to turbine and platform size.
- Efficient port operations reduce transport costs and timelines.
Comment:
Strategic port development ensures long-term supply chain capability, increasing the UK’s competitiveness in global floating wind markets.
CASE STUDY 4: Environmental & Regulatory Considerations
Scenario:
- The Celtic Sea hosts sensitive marine ecosystems.
- Ocean Winds will need environmental impact assessments and compliance with marine licensing.
Insights:
- Pre-consent surveys by the Crown Estate help de-risk environmental permitting.
- Floating wind is generally less invasive to seabed than fixed-bottom wind farms.
Comment:
The project demonstrates a balance between green energy expansion and environmental stewardship, which is key for community and regulatory support.
CASE STUDY 5: Strategic Significance for UK Energy Transition
Scenario:
- Floating wind allows development in deeper waters where fixed-bottom turbines are not feasible.
- Contributes directly to UK government targets for net-zero by 2050 and offshore wind capacity expansion.
Comment:
This award signals public and private sector alignment on decarbonisation, energy security, and technology leadership. It also positions the UK as a global hub for floating offshore wind innovation.
Expert Commentary
- Technical Confidence
- Ocean Winds’ prior projects reduce risk and provide proven know-how for turbine installation, floating platforms, and O&M strategies.
- Economic Benefits
- Apprenticeships, local employment, and port utilisation promote regional economic regeneration.
- Energy Security & Sustainability
- Floating wind projects like this diversify UK electricity generation, reduce reliance on fossil fuels, and strengthen energy resilience.
- Policy Implications
- The Crown Estate’s structured leasing and de-risking measures show strong government support, reinforcing investor confidence in large-scale offshore projects.
- Future Competitiveness
- Developing a UK-based floating wind supply chain improves international competitiveness, supporting exports of UK offshore wind expertise.