UK Will Rebid Offshore Wind Lease Setting a Critical Test for the Sector
The UK's Crown Estate, which manages all the offshore assets, announced that it plans to launch a new competitive bid for a lease in the Irish Sea just months after the existing holders backed out of the project after five years of planning. The new competitive tender is seen as a key challenge for the sector after partners EnBW and JERA Nex BP opted not to proceed, calling the project no longer economically viable.
The Morgan site is approximately 22 miles off the west coast in the Irish Sea in the area near the Isle of Man. The project, which was projected to produce 1.5 GW with 96 turbines, had first been awarded its lease in 2021, going to a partnership between EnBW and BP. It was one of the first large projects proposed for the Irish Sea and had received a Development Consent Order in August 2025.
The partners said in January they had decided not to proceed with the project after the UK government did not allocate the project during the last round of awarding Contracts for Difference. They could have sought to resubmit for the upcoming round later this year but instead said they had determined the project was no longer economically viable as per EnBW’s standards and criteria. They said the primary reason was the lack of a CfD award while also citing cost increases across the supply chain, higher interest rates, and ongoing project implementation risks. EnBW said ending the project would result in a non-cash impairment charge of €1.2 billion for its 2025 annual report.
The companies had said they were working closely with The Crown Estate to assess the implications of their decision and the path forward. The Crown Estate had said it was still committed to the project and would look to move it forward.
It reports it has completed reviewing several options and decided to launch a new competitive tender next month for a decision in late 2026. It notes the site already has its grid connection agreement with the National Energy System Operator, received its Development Consent Order, and is expected in September to have a decision on its transmission assets application, which was filed jointly with the Morecambe project.
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Several key UK projects were canceled by developers, citing the changing economics. The new tender for Morgan is seen as a key test of the market and the willingness of a developer to step into the project. The Crown Estate notes it is separate from the next allocation round, which will be another key test for the industry.
The UK highlights it has reached approximately 18 percent of its electricity generation capacity, approximately 16 GW, coming from offshore wind, and 30 percent of total capacity from a combination of onshore and offshore wind projects. The UK has the largest offshore wind capacity in Europe and is second only to China. The government continues to pursue an aggressive policy and provide support as it aims to surpass 43 GW of offshore wind electricity capacity by 2030.