The Crown Estate, which manages the sea bed around England and Wales, is now facing a possible legal challenge from Greenpeace. The environmental group claims the estate is driving up the cost of renewable energy by exploiting its monopoly position.
Several Labour MPs criticised the Crown Estate for failing to ensure that local communities benefit from the booming offshore wind sector. They argue that companies developing wind projects should be required to invest in UK supply chains and create more domestic jobs.
Although profits from the Crown Estate are passed to the Treasury, a portion funds the Sovereign Grant which supports the King and working members of the royal family. Last year, the grant jumped to £132 million, up from £86.2 million, partly due to rising fees paid by offshore wind developers. The grant, currently set at 12 per cent of profits, is due for review next year and could be reduced.
Earlier this year, the estate invited bids for sections of the Celtic Sea to develop new floating wind platforms. Companies pay an upfront “option fee” and a regular operating fee. In other countries, developers are given discounts on the upfront fee if they invest locally, a system some MPs want the UK to adopt.
Henry Tufnell, Labour MP for Mid and South Pembrokeshire, accused the estate of “greed — one of the seven deadly sins.”
He said: “It’s incredibly frustrating. The Crown Estate acts like a quasi-government body, yet its approach is purely commercial maximising profit and handing 12 per cent to the monarch. That’s at odds with the chancellor’s message of buying, making and selling more in the UK.”
His remarks were echoed by fellow Labour MPs Steve Witherden (Montgomeryshire & Glyndwr) and Noah Law (St Austell & Newquay).
Law described floating offshore wind as a once-in-a-generation opportunity for Cornwall’s economy.
“But we must learn from the North Sea,” he said. “We need to build domestic supply chains, not rely on overseas contractors from the harbours of Port Talbot and Falmouth to Cornwall’s industrial heartland.”
Responding to the criticism, the Crown Estate said British companies already play a major role in wind farm development and that winning bidders are required to invest in local skills and careers.
A spokesperson said: “It’s reductive to suggest that we focus on short-term gain. The Crown Estate is tasked by Parliament to create long-term value for the country investing early, de-risking development, and helping build sustainable economic growth.”
