More players have come forward to buy offshore wind licenses, and this is pushing prices up. In February, The Crown Estate was able to secure the English treasury almost DKK 7.5 billion in revenue for six offshore wind licenses for projects with an estimated effect of eight GW.
The high demand for the offer in England and Wales prompted the Scottish authorities to review their tender structure in 'ScotWind Leasing'.
Crown Estate Scotland has now completed this review, and they have thus expanded the opportunity to make money on the Scottish seabed.
Thus, they have chosen to increase the maximum bid per square kilometer of seabed tenfold from DKK 87,000 (GBP 10,000) to DKK 870,000 (GBP 100,000), the Crown Estate informs. In total, there will be an opportunity to bid for the development of 8,600 square kilometres of Scottish seabed.
The tender could therefore potentially bring the Scots around DKK 7.7 billion in revenue to the Treasury if the price framework is maxed out.
- This review of the tender was carried out to reflect the changes we have seen in the UK offshore wind market, so that we could arrive at a pricing structure that correctly reflects these changes, says Amanda Bryan, who is the chairman of Crown Estate Scotland and continues:
- Through the development of ScotWind Leasing, we have sought to ensure the greatest possible value for society and worked to make Scotland a competitive destination for the investment necessary to turn potential projects into reality. This review achieves both of these objectives.
Ørsted fears expensive licenses
Ørsted has expressed interest in bidding for the licenses for the Scottish offshore wind. The Danish energy company had to see itself passed over in the English and Welsh bidding rounds. Here the biggest buyers were RWE, BP and Total.
Ørsted's CEO Mads Nipper has warned the authorities against pushing up prices for offshore wind, as this could in the long term put a brake on the development of the industry.
- If authorities fall for the temptation to maximize taxpayers' earnings on marine rights by charging abnormal amounts for the rights, and those demands are even met, then we are in a complex situation that will be challenging, Mads Nipper has previously stated.
The last day to bid in the Scottish tender has been extended to July 16, 2021.
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