Awarded
Celtic Sea Floating Offshore Wind Leasing Round 5 - Project Development Area 2
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Descriptions
The Crown Estate will enter into a concession contract for the grant of new seabed rights to Celtic Sea Offshore Wind Farm Limited ("CSOW") for the development of a new floating offshore wind farm within a project development area (a "PDA") in the Celtic Sea, which has a maximum potential energy generation capacity of 1.5GW (the "Contract").
The Contract is an 'agreement for lease', in which CSOW will acquire:
- the rights necessary to develop a floating offshore wind farm in the relevant PDA; and
- the option to enter into a lease for the construction and operation of the wind farm;
for the purposes of the generation, transmission and sale of electricity (or other forms of energy, where permitted), subject to the satisfaction of certain conditions detailed in the Contract.
As envisaged by Paragraph 5, Schedule 3 of the Procurement Act 2023 ("PA23"), the Crown Estate is unable to estimate the maximum contract value for the PDA which is the subject of this notice. Due to the nature of the market and the activities to which the Contract relates, it is impossible to predict what the likely overall value of the concession to CSOW will be. The maximum contract value has therefore been stated in this notice as [00000 GBP].
The Crown Estate has accordingly treated the Contract as having a value that is higher than the threshold for concession contracts in Schedule 1 of the PA23.
The option fee price which will be payable by CSOW to The Crown Estate under the Contract will be £350/MW/annum.
The Contract has been awarded by way of direct award to CSOW following an unsuccessful tendering procedure, in accordance with section 43 of the PA23. CWSOW is not an excluded supplier. The contract was not awarded under any other provision of the PA23.
The Crown Estate held a competitive tender process for the granting of new seabed rights to developers for the development of new floating offshore wind farms within three PDAs, which was advertised by way of a concession notice published on Find a Tender on 28 February 2024 (notice identifier: 2024/S 000-006434) (Celtic Sea Floating Offshore Wind Leasing Round 5 ("Round 5")). The Round 5 tender process was designed to result in the award of three separate agreements for lease to three different successful suppliers - one for each of the three PDAs. Two bidders remained at the final (auction) stage of the process and bid successfully for two of the PDAs. Under the rules of the Round 5 tender process no bidder could be awarded rights in respect of more than one PDA and no tender was received for the third PDA. As a result, for the purposes of section 43(2) of the PA 2023, no suitable tenders were received for the agreement for lease for the third PDA.
The Crown Estate considers that an award of the contract under section 19 of the PA 2023 is not possible in the circumstances. A delay to granting rights in respect of the third PDA while a further full competitive tender process is designed and run risks a number of potentially significant adverse effects on all three PDAs. Timely deployment of all three PDAs is needed to provide the certainty the supply chain, ports and other critical infrastructure need to plan and invest in floating wind in the UK. Without the full award of three PDAs, it is possible that the necessary investment in supply chain and ports may not be forthcoming (or may be delayed) resulting in possible delay to delivery. Any delays to the award of the third PDA could also delay skills development and the necessary investment in people required to support Round 5, causing delays in deployment of the programme. In addition, the experience and outcome of the Round 5 tender provide compelling evidence that the current challenging market conditions are such that a further, lengthy full tender process is unlikely to deliver a successful outcome for the third PDA.
Timeline
Published Date :
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Tender Regions
CPV Codes
31121340 - Wind farm
45262422 - Subsea drilling work
71500000 - Construction-related services
45315200 - Turbine works
45200000 - Works for complete or part construction and civil engineering work
45262421 - Offshore mooring work
45251160 - Wind-power installation works
45315300 - Electricity supply installations
31121320 - Wind turbines
45262424 - Offshore-module fabrication work
9310000 - Electricity
Keywords
energy
turnkey projects
utility turbine
public works
utility power
wind park
infrastructure
site preparation
earthworks
wind turbine
wind farm
modern turbine
electricity
power supply
grid electricity
building projects
mooring buoy contact
wind power installation
renewable energy site
structural module civils
scaffold planning
construction logistics
general contracting
subsea module production
offshore seabed drilling
underwater drilling
turbine tower build
wind-power installation
construction work
structural construction
waterproofing services
civil engineering
turbine installation
offshore docking mooring
substation cabling
wind turbine cluster
offshore mooring work
site clearing services
transformer supply lines
wind generator build
earthworks services
utilities trenching
turbine civil works
wind farm turbine
wind farm erection
turbine generator setup
subsea drilling work
wind generation farm
wind energy turbine
site utilities installation
heavy equipment operation
oilfield module manufacturing
power plant turbine erection
access infrastructure services
marine mooring installation
subsea borehole operations
seafront mooring assembly
temporary facilities setup
wind turbine construction
high/medium/low voltage supply systems
power distribution systems
renewable turbine installation
electricity supply installation
wind energy infrastructure
seabed extraction drilling
offshore unit construction
floating module fabrication ([turn0search1] �[turn0search2] �[turn0search8])
onshore wind plant construction
pre-construction services
wind energy facility setup
building construction support
green power turbine installation
offshore-module fabrication
marine platform module assembly
electrical grid connection works
berth mooring system installation
turbine assembly services
supply feeder installation
fabrication of marine modules
turbine foundation and alignment
offshore structural module build
underwater geological drilling
noise control implementation
industrial turbine installation
modular construction support
structural framework setup
Tender Lot Details & Award Criteria
1 Tender Lots
Workflows
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