United Kingdom

United Kingdom

Offshore lease compensation agreed

UK: The British Government has issued assurances that offshore wind-farm developers will be entitled to compensation if leases or agreements-to-lease awarded to them are withdrawn by the Crown Estate.

Renewable UK chairman Andrew Jamieson
Renewable UK chairman Andrew Jamieson

Google Translate

The Crown Estate owns rights to the UK territorial waters where many wind farms are now planned. A clause currently exists in the Crown Estate's seabed leases which allows offshore-wind projects to be terminated if oil and gas reserves are found in the area. Previously no compensation had been payable and this factor has been a barrier to obtaining offshore-wind finance.

The new compensation regime will be based on the existing compulsory onshore-purchase agreements, with the loss of future profits taken into account, as well as capital spend.

Renewable UK's offshore wind-development manager Paul Reynolds said: "After nearly seven years of lobbying, Renewable UK is delighted to welcome this ministerial statement, which provides greater clarity on an issue which had been a significant barrier to investors."

Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Sign up now
Already registered?
Sign in

Windpower Monthly Events

Latest Jobs