Robin Pagnamenta, Energy Editor
Attend a special evening hosted by Mike Atherton
Plans by the Crown Estate to treble its revenues from offshore wind parks have angered energy companies, who say that the move could jeopardise the viability of important new projects and undermine government hopes to boost renewable energy in Britain.
The Crown Estate, which owns the seabed out to 12 nautical miles, is already set for a £500 million windfall from offshore wind power production by charging rent based on each unit of electricity produced.
A negotiated fee of about £1 per megawatt hour of electricity generated has been increased to £3 in talks over nine new giant offshore schemes, casting doubt over whether some of them will be commercial, according to the energy companies.
“The economics of offshore wind are difficult enough as it is,” an insider at one company said, “but the scale of these new charges can make the difference between new projects being built or not built . . . It’s creating a lot of difficulty in terms of making the numbers stand up.”
He estimated that if the Government meets its goal of building 33 gigawatts of offshore wind power by 2020, the Crown Estate stands to earn £262 million a year from offshore wind generation. Already, it is set to make about £25 million a year from existing wind projects where the leases have been awarded.
The Crown Estate, which holds property owned by the Queen, pays surplus revenues to the Treasury. Rob Hastings, director of its marine estate, confirmed that it was seeking higher charges for its latest leases — in line with inflation — and said: “Our rental charges are not material to the economics of these projects . . . The rental is practically notional.”
The Crown Estate, one of the largest property owners in Britain, with a portfolio worth £6 billion, is expected to award the leases to nine companies and consortiums by the end of the year. To meet UK targets of cutting carbon emissions by 80 per cent by 2050, compared with 1990, the Government has launched a programme to expand its offshore wind farms, already the world’s biggest, at about one gigawatt. To achieve this, about £100 billion of investment will be required by 2020, the Crown Estate reported this month. The total gener-ating capacity of all Britain’s power stations and wind farms stands at about 75 gigawatts.
The latest “Round 3” offshore projects are divided into nine zones and the first turbine is expected to be in the water by 2014. ScottishPower, Mainstream Renewable Power, Vattenfall, RWE and Scottish & Southern Energy are among those bidding.
Industry sectors news at a glance. Interactive heatmap, video and podcast
Everything the Business Traveller needs to know to make a better trip
Get ready for the winter sports season, with our resort guides and snow reports
We are backing British business, what is the confidence of the nation and what businesses are succeeding?
Growing demand for energy, oil that is harder to reach and the rise of carbon dioxide emissions. We examine the energy challenge
With rail travel in Europe on the rise, we review the benefits of travelling by train
In this special section we explore new food trends to help improve your dinner party and impress guests
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
1998
£47,955
12 months for the price of 11 and a 5% discount.
Offer ends 31/11/09
Check your free Experian credit report before applying
Car Insurance
£100,000
Barnardos
UK
PwC’s Consulting practice helps businesses of all shapes and sizes work smarter and grow faster
PwC
£37,000
Department for Culture, Media and Sport
London
Currently £36,285
Department for Culture, Media and Sport
London
Moments from Battersea Park.
For sale with Winkworth
Find out about shared ownership.
See your free Experian credit report beforehand
Includes flights, accommodation with room upgrades, transfers city tours in Hong Kong and Bangkok.
PremierHolidays.co.uk
For your ultimate tailor-made ski holiday, click here
Get covered on your travels with a superb range of policies at great prices. Visit InsureandGo.com
World Class Golf, Spa and preferential Beach Club. Private estate overlooking West Coast
Villas from £275 per night inclusive of Golf
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
Your Comments
Order By: