GB Energy-Crown Estate partnership may drive removal of barriers to offshore wind deployment

GB Energy, the Labour initiative for a UK government backed clean energy superpower, is set to partner with The Crown Estate to boost investment and deliver offshore wind projects in English and Welsh waters. Four projects are currently envisaged, excluding Scotland. However. discussions are also ongoing with Crown Estate Scotland, which manages the Scottish seabed.

Gareth Phillips, renewable energy expert at Pinsent Masons, said: “A quest to bring forward more offshore wind projects is undoubtedly a good thing. The announcement could suggest, however, that there is no appetite in the private sector to do that, hence government intervention and investment is required. That is likely to be misguided. Undoubtedly, there is the not insignificant issue of cost. It will be interesting to see what option fee and structure is afforded to GB Energy by The Crown Estate, given the Round 4 pricing structure.”

As the numerous offshore wind industry groups would suggest, there are known - and fixable - barriers to deployment for offshore wind and the industry will be watching to see if GB Energy’s involvement will drive resolution of those.

The first barrier is the cost and time associated with consenting. The government is taking forward plans to amend the Planning Act 2008 process in England and Wales in hopes of speeding up the consenting process.

Amy Stirling, energy infrastructure specialist at Pinsent Masons, said: “Those working day to day in the industry know that the legislation and policy are fine, and what is needed is experienced and confidence inspectors who are willing and able to run an efficient examination. Well-resourced statutory consultees who can read and engage with complex technical information in good time are also required. Decisions must also be taken on time, focusing on key consenting risks. Labour’s recent quick decision making on solar projects gives some comfort here.”

In Scotland, consent decisions continue to be slow, extending well beyond the target 12-month period for determination. There is a risk of increased delay as more ScotWind projects submit applications.

A clear and workable habitats regulations assessment (HRA) is also required. The Energy Act 2023 implemented widespread changes to the HRA regime as well as the marine recovery fund.

However, “real world delivery, which can provide certainty to developers and investors, has been slow to non-existent. Developers are continuing to have to rely upon measures delivered at project level, often, if not always, at disproportionate cost. This is all to ‘offset’ what is a very worst-case prediction of future impacts, often on disputed and uncertain models. Will GB Energy seek to rely on the marine recovery fund to get its option agreements in place? That might be helpful to the industry if it puts practical steps in place”, said Stirling.

Another potential barrier to deployment is grid connection. For instance, where the GB Energy projects connect, in what timescales, and whether they will be delivered before the late 2030s or into 2040. Grid offers to current applicants are offering connection dates well into the 2030s meaning further queue management is likely to be required to bring offshore wind projects online.

Stirling said: “The announcement is likely to be welcome, however, it does need to be recognised that there are developers and projects which want to come forward, and quickly. Efforts to reduce continued barriers to deployment, in tandem with GB Energy’s efforts, must continue but this time at pace.”

The UK government today introduced the Great British Energy Bill into the House of Commons which will make provision for GB Energy.