Greenpeace threatens to sue crown estate for driving up cost of offshore wind | Energy industry
Greenpeace is threatening to sue King Charles’s property management company, accusing it of exploiting its monopoly on ownership of the seabed.
The environmental pressure group claims the Crown Estate has driven up costs for wind power developers and increased its own profits, as well as the royal household’s income, because of the “aggressive” way it auctions rights to the seabed.
The Crown Estate, as the legal owner of the seabed around England, Wales and Northern Ireland, is responsible for the auction of offshore wind rights. It has benefited from the industry’s enormous growth, demanding high option fees from renewable energy developers to secure areas of the seabed to build their wind farms.
It made a profit of £1.1 billion in its financial year ending March, double its level from just two years ago.
Will McCallum, co-executive director of Greenpeace UK, said the estate should “manage the seabed for the benefit of the nation and the common good, not as an asset that can be exploited for outrageous profits and bonuses”.
“We must leave no stone unturned in finding solutions to reduce the energy bills that are causing misery for millions of homes,” he said.
“Given the critical importance of affordable bills and clean energy to the Government’s agenda, the Chancellor should use her guiding power to call for an independent review into the conduct of these auctions. If the issue is not resolved before the next round, we may have to let a court decide whether what is happening is legal or not.”
Greenpeace says the Crown Estate has a legal duty not to exploit its monopoly position as owner of the seabed around England, Wales and Northern Ireland, but is now breaching that duty.
The lobby group said it was concerned that the Crown Estate was rationing seabed supplies to protect high prices, and argued this could harm the development of offshore wind power in the UK.
The Crown Estate has reportedly rejected Greenpeace’s claims, arguing the pressure group had misinterpreted the estate’s legal obligations.
Around 12% of the profits from the crown domain are returned to the monarchy to finance its work. This figure has been lowered by 25% in 2023 to compensate for increased profits from offshore wind projects.
The UK’s wind industry is at a critical juncture as the government plans to double onshore wind capacity and quadruple offshore wind capacity by the end of the decade.
The Crown Estate, which also includes a portfolio of London properties and rural real estate, is worth £15 billion. London’s real estate assets, concentrated around Regent Street and St James’s, are valued at £7.1 billion.
A Crown Estate spokesperson said: “Greenpeace has misunderstood the Crown Estate’s legal obligations and leasing processes. The option fee is not set by the Crown Estate. It is set by the developers through open, competitive auctions and reflects market appetite at the time. As our net income is returned to the Treasury, the option fee helps ensure that Taxpayers receive the required value from the development of our rare and valuable seabed resources.
“The Crown Estate is accelerating offshore wind, in line with Government policy to advance the energy transition at pace and improve energy security.”
The Treasury has been contacted for comment.
