The Crown Estate reported a decline in annual operating profit to GBP 1.2 billion (approximately EUR 1.4 billion) from GBP 1.4 billion (approx. EUR 1.6 billion) in the previous year. This decrease is attributed to lower offshore wind Round 4 option fee income, as projects transitioned into the construction phase. Excluding these fees, operating profit rose 5% to GBP 370 million (approx. EUR 435 million), with revenue from existing offshore wind farms increasing 20% to GBP 117 million (approx. EUR 138 million).
Throughout the year, the Crown Estate returned GBP 487 million (approx. EUR 573 million) to HM Treasury, bringing total contributions to GBP 5.1 billion (approx. EUR 6 billion) over the past decade, as stated in its financial report released on 25 June.
The UK seabed manager noted that offshore wind capacity in its waters reached 13 GW, up from 12 GW, with 36 wind farms now operating in its marine portfolio. The pipeline of offshore wind capacity has increased to 56 GW, bolstered by an expanding leasing and development program as Round 4 projects proceed to construction.
In the 2021 Offshore Wind Seabed Leasing Round 4, the Crown Estate selected six projects, which signed Agreements for Lease in 2023. This marked the start of a three-year period during which developers pay annual option fees.
The six offshore wind farms in Round 4 include RWE’s 3 GW Dogger Bank South East & West, JERA Nex BP’s 1.5 GW Mona and the recently discontinued 1.5 GW Morgan, TotalEnergies and Corio’s 1.5 GW Outer Dowsing, and the 480 MW Morecambe, developed by Cobra and Flotation Energy, now owned by Copenhagen Infrastructure Partners (CIP).
“The first two Round 4 projects entered construction this year and together could generate enough clean energy to power two million homes. A tender for the Morgan project site, returned after missing Government’s Contract for Difference funding, is due to launch soon. As anticipated, income from Round 4 option fees decreased from GBP 1,073m to GBP 875m this year,” the Crown Estate stated.
The Crown Estate’s financial report also noted a significant change in investment policy following new parliamentary powers granted in 2025, allowing it to retain a larger share of gross revenue for reinvestment, increasing from 27% to 60% in fiscal years 2026 and 2027, pending the finalisation of its borrowing framework with HM Treasury support.
The organisation now estimates it can invest up to GBP 5 billion (approx. EUR 5.9 billion) over the next decade, significantly boosting its capacity to support offshore wind growth, energy security, and related industrial development. Planned investment priorities include up to GBP 400 million (approx. EUR 471 million) for offshore wind supply chain capacity, along with broader initiatives in science, housing, and urban regeneration.
“With new parliamentary powers, retaining more revenue for investment, we can enhance long-term investment in these sectors and generate increased returns for public expenditure,” said Dan Labbad, Chief Executive of the Crown Estate.
“Our role is to steward our national assets responsibly, increasing value for public finances and generating wider social and environmental benefits over time—supporting energy security, economic growth, and regeneration.”
The Marine portfolio continued to be a key performance driver for the seabed manager, with operating profit rising to GBP 175 million (approx. EUR 206 million), supported by increased wind generation and capacity additions.
In its 2025 results, the Crown Estate highlighted awarding rights for new offshore wind projects in the Celtic Sea and preparing further leasing rounds.
Original Story at www.offshorewind.biz