The Crown Estate, which manages land and the seabed around England, Wales, and Northern Ireland, said it would lease the seabed for six offshore wind projects that could produce as much as 8 GW of renewable energy by the end of the decade, enough to power over seven million homes.

The company would receive an annual option fee from each project developer until they are ready to enter into a lease for the seabed site. The total commitment across all six projects is approximately £1 billion annually.

The lease agreement is for a maximum of ten years. Successful bidders have committed to at least three years of option payments before entering into the agreement. The option payments reduce as a project moves into a lease and cease when the entire capacity is granted.

Three of the six projects are located off the North Wales, Cumbria, and Lancashire coast, while the other three are in the North Sea off the Yorkshire and Lincolnshire coast.

This decision adds to the UK’s net-zero energy transition and follows three previous leasing rounds by The Crown Estate.

Since the first leasing round in 2001, offshore wind has grown to become the largest source of renewable electricity in the UK, capable of powering about 41% of UK homes.

The Crown Estate has awarded rights for 41 GW of offshore wind capacity, with 12 GW already operational.

The Crown Estate is also working to identify and promote new technologies to help the UK meet its energy and sustainability goals.

They have invested £50 million in the Offshore Wind Evidence and Change program to gather information and support the growth of offshore wind.

The company has ambitious plans to deliver 4 GW of floating offshore wind energy capacity in the Celtic Sea by 2035 and has identified the potential for an additional 20 GW by 2045.

The UK’s Energy Security Strategy aims to achieve 50 GW of offshore wind capacity by 2030, which is more than enough to power every household in the UK. Of the total capacity, floating offshore wind projects of 5 GW capacity will be installed in the deep sea.