Climate
Welsh customers and the Crown Estate: Are seabed fees really driving up bills?
Debate intensifies as Lib Dems and Greenpeace accuse the Crown Estate of “profiteering” — but experts and ministers say seabed fees are a tiny part of energy costs
WELSH households face some of the highest electricity bills in Britain, and offshore wind development in the Celtic Sea has become a heated political battleground. The Welsh Liberal Democrats, backed by Greenpeace UK, insist that “monopoly profiteering” by the Crown Estate is inflating the cost of renewable energy and allowing wealth generated off the Welsh coast to flow out of the country with little local benefit.
But the Crown Estate, the UK Government and several independent analysts strongly dispute these claims, arguing that seabed leasing fees make up only a small fraction of the cost of building wind farms—and that the biggest drivers of recent price increases lie elsewhere.
Lib Dems allege “monopoly behaviour”
Speaking in Parliament this week, Welsh Liberal Democrat MP David Chadwick said the Crown Estate’s decision to run uncapped auctions for seabed rights had “forced developers to pay billions just to access the seabed”, with those costs ultimately passed to consumers through the Government’s Contracts for Difference (CfD) system.
Leasing Round 4 in 2021 generated headline bids of £9.4 billion across the UK—more than all previous leasing rounds combined. Greenpeace campaigner Angharad Hopkinson described the process as “profiteering” and claimed the system was “fleecing Welsh communities while Crown Estate executives take home massive bonuses”.
The party argues that Wales sees “almost no direct return” from offshore wind despite hosting some of the most promising waters for renewable energy in Europe. It wants seabed auctions reformed and the Crown Estate in Wales fully devolved.
Seabed fees are a small slice of total costs
However, independent analysis paints a more nuanced picture. Aurora Energy Research estimates that seabed payments—comprising option fees and annual rents—represent only 1–3% of the lifetime cost of a typical offshore wind farm.
The biggest jumps in project costs, analysts say, have been driven by factors entirely outside the Crown Estate’s control:
- 40–50% increases in the price of offshore turbines
- steep rises in steel, concrete and subsea cable costs
- supply-chain delays since the pandemic
- interest rates rising from near-zero to 5–6%
According to Aurora, even if the Crown Estate charged nothing for the seabed, the CfD strike price needed for new Celtic Sea projects would fall by only £2–£3 per MWh—less than 5% of the level developers sought in the last auction.
RenewableUK and major developer Ørsted both back this view, saying seabed fees are “a known, modest cost” and not the reason offshore wind prices have increased.
Most of the £9.4 billion never materialised
The huge Round 4 headline figure is also misleading. Owing to the same inflationary pressures that have hit global renewable projects, most developers have since withdrawn or renegotiated their option agreements. As a result, the Crown Estate has received only a fraction of the original bids.
Where does the money go?
All net profits from the Crown Estate go directly to the UK Treasury. Since 2017, these profits have reduced the Sovereign Grant paid to the Royal Family—cutting the cost to taxpayers. In 2023–24 alone, Crown Estate earnings lowered the Sovereign Grant by £108 million.
Wales also receives a population-based share of UK-wide spending through the Barnett formula. Analysis by the Wales Governance Centre suggests Wales receives between £4 and £4.5 billion more per year in identifiable public spending than England, partly funded by UK-wide Crown Estate and renewable-energy revenues.
Devolution dispute
Although the Welsh Liberal Democrats want full devolution of the Crown Estate, the Labour-run Welsh Government has repeatedly declined to back the idea. Ministers say Wales would lose its substantial fiscal transfer from the rest of the UK and inherit liabilities, such as decommissioning costs and legal risks.
In Scotland, where the Crown Estate is devolved, the smaller portfolio has run at a loss in some years, and community wealth funds from offshore wind have so far been limited.
Executive pay and reforms
Critics have highlighted the Crown Estate CEO’s £1.9 million pay package in 2023–24, though most of this was a one-off deferred bonus linked to Round 4 income that ultimately did not materialise. The base salary is around £370,000.
The Crown Estate says it is now consulting on a new leasing round with lower option fees, and has voluntarily returned more than £100 million of unspent Round 4 payments to developers to help projects proceed.
Bottom line
Seabed fees play a role in the cost of offshore wind, but the evidence suggests they are not a major driver of rising consumer bills. Global inflation, supply-chain pressures and high interest rates remain far more significant.
What is clear is that Wales receives no ring-fenced financial benefit from wind farms off its coast—and whether the current UK-wide model is fairer or less fair than full devolution remains a live political argument, with Labour, Liberal Democrats, campaigners and analysts sharply divided.
Business
Pembroke Dock battery box energy scheme is approved
FURTHER micro energy storage facility ‘battery box’ schemes in Pembrokeshire have been considered by county planners, with one backed and one withdrawn by the applicants.
In two separate applications to Pembrokeshire County Council, AMP Clean Energy sought permission for micro energy storage projects on land at Waterloo Industrial Estate, Eastern Avenue, Pembroke Dock, and land between Steynton Road and Sheffield Drive, Milford Haven.
A supporting statement accompanying each application says: “AMP Clean Energy is developing Battery Boxes across the UK to provide a low carbon, flexible and de-centralised store of electricity that benefits local communities, businesses, and homes.”
It says the battery boxes import electricity from the local electricity network when demand for electricity is low or when there are high levels of renewable energy available, exporting it back during periods of high demand to help address grid reliability issues prompted by an increase of intermittent (wind and solar) generation.
AMP Clean Energy says it is developing up to 1,250-plus Battery Boxes in the UK over the next three years and, to date, has received planning consent for more than 80 such schemes.
It says each box, which takes up roughly two car parking spaces, stores 800kWh of electricity, giving the potential to power 200 homes for four hours where there is a supply disruption.
The battery box schemes are part of a raft of applications in the county.
AMP was previously granted approval for schemes on land between King Street and Meyrick Street, Pembroke Dock and land in between Castle Quarry and Haven Court, Pembroke.
AMP Clean Energy was also recently granted permission for micro energy storage projects at on a verge at the Bridge Innovation Centre, Pembroke Dock, and land to the south of Withybush Road, Withybush Industrial Estate, Haverfordwest.
However, a scheme for a micro energy storage project on land at Fishguard Leisure Centre Car Park, near Ysgol Bro Gwaun was refused by the council’s planning committee late last year.
That scheme was refused, against an officer recommendation of approval, after concerns were raised including being in “an unsafe, unsustainable and unnecessary location,” and the “nightmare scenario” of a fire as children were leaving the school, with was disputed by AMP’s agent.
The latest Pembroke Dock application was conditionally approved but the Milford Haven scheme has been withdrawn.
Climate
Petition opposing climate emergency reaffirmation and ‘tax hikes’ to be heard
A PETITION call for backing for a Pembrokeshire council group looking at its previous climate change commitment will be heard by councillors.
Last July, councillors agreed to set up a group to review its own decision to declare a climate emergency some six years ago.
In May 2019, the council declared a climate emergency following a notice of motion by Cllr Joshua Beynon, committing to becoming a zero-carbon local authority by 2030.
At the July 2025 meeting of Pembrokeshire County Council, a successful notice of motion by the late Cllr Mike Stoddart called for the establishment of a working group to review that decision.
That led to a recent petition, by Lynda Duffill of West Wales Climate Coalition, which attracted 725 signatures, calling on the council to reaffirm its Declaration of a Climate Emergency, and retain the ambition to deliver Net Zero Council operations by 2030.
That petition was considered at the October meeting of full council; members agreeing the working group be asked to ensure the petition is included as evidence in its consideration of the matters referred to it by the council resolution in July 2025.
This led to a further petition, concerned at a potential increase in council tax from a re-affirmation of a Declaration of a Climate Emergency.
The latest e-petition, on the council’s own website, created by Carolyn Ellis, reads: “We call upon all elected members of Pembrokeshire County Council to support and to take seriously the working group tasked with the review of the ‘climate emergency’ called in 2019 (by the-then 21-year-old councillor Joshua Beynon) and to question the hefty funds needed to spend on ‘net zero’.
“We refer to the recent petition by the West Wales Climate Coalition which purports to speak for the residents and council tax-payers of Pembrokeshire.
“There is potentially a far higher number of residents who do not share this unsubstantiated view and who are extremely concerned about the potential for huge hikes in council tax, especially if this tax is linked in future to the carbon efficiency of homes and businesses.
“This was hinted at as a possible lever for encouraging ‘compliance’ with decarbonising homes in the ‘Better Homes, Better Wales, Better World’ report. Therefore, not only could we be faced with more taxes, but also inevitable deterioration in service provision by PCC.”
The current petition runs to March 26, and has attracted 253 signatures to date.
Any petition of between 100 and 499 signatures triggers a debate at one of the council’s Overview and Scrutiny Committees, and any over 500 a debate at full council.
Climate
Nature in Wales ‘in steep decline’ with most protected habitats in ‘poor condition’
Watchdog says urgent joint action is needed — with only two of 61 habitats classed as favourable nationwide
NATURAL RESOURCES WALES has issued a stark warning about the state of the nation’s wildlife and landscapes after publishing the first full Wales-wide assessment of the conservation status of key habitats and species.
The report, released under embargo at 12:01am on Thursday (Jan 22), brings together evidence on habitats and non-bird species of international importance, alongside assessments for all birds in Wales. NRW said it provides the clearest national picture yet of how species and habitats are faring, the pressures driving decline, and what measures are most likely to support recovery.
The findings are intended to act as a baseline for efforts to halt biodiversity loss and will feed into Wales’ next State of Natural Resources Report (SoNaRR), which NRW said is due to be published on Thursday (Jan 29).
The assessment makes sobering reading.
Of the 61 habitats assessed, only two were found to be in favourable condition across Wales as a whole. Nearly 80% were classed as “unfavourable-bad”, underlining what NRW described as the scale of the challenge facing nature recovery in Wales.
Among 53 non-bird species, just 14 were assessed as being in favourable condition, while 16 were found to be in serious decline. NRW said these include Atlantic salmon, which has suffered steep falls in numbers in recent years.
For marine species — excluding seabirds — the report found only four were in favourable condition, while the conservation status of others remains poorly understood due to gaps in evidence.
The report also highlights steep declines in 16 species, including the Marsh fritillary butterfly and rare plants such as the fen orchid. But NRW said the overall picture is not entirely bleak, pointing to some bird species that have increased significantly in Wales over the past two decades, including the Atlantic puffin.
NRW said pressures vary between habitats and species, but the main drivers of decline include agriculture, climate change, pollution and urban development. It also highlights disease impacts on birds and water-related pressures affecting fish — factors which can combine and compound one another.
The assessment draws on evidence from long-running monitoring programmes, independent research and citizen science. It examines range, population trends, habitat condition and long-term prospects, alongside the pressures continuing to drive losses.
NRW said the complexity of the threats means solutions must be joined-up, long-term and delivered collectively — not as isolated projects — but argued that nature can recover where action is targeted and sustained.
It pointed to partnership work already underway, including peatland restoration and carbon protection, and programmes aimed at reversing bird declines, including the Wales Curlew Action Plan and the Welsh Seabird Conservation Strategy.
NRW also said several species have been successfully restored through reintroduction programmes and habitat management, including fen orchid, shore dock, natterjack toad and sand lizard. Work is also underway on freshwater pearl mussel recovery.
Other initiatives highlighted include the £26.6m Welsh Government-funded Nature Networks programme, aimed at improving and connecting habitats across Wales, and the Natur am Byth species recovery programme, described as a major partnership effort focused on preventing extinctions while engaging communities.
Mary Lewis, Head of Natural Resource Management Policy at NRW, said the report offers both a warning and a roadmap.
“This report paints a sobering picture of nature in Wales,” she said. “The scale of decline is concerning, but we cannot afford to see it as inevitable.
“What this assessment gives us is clarity: clarity on where nature is under the greatest pressure, and clarity on what needs to be done. It provides the evidence base we need to target our work, and to help others target theirs.”
She added that NRW is already working with a wide range of partners — including farmers, land managers, local authorities, communities, organisations and government — to restore habitats, improve river health, and support nature-friendly farming through the Sustainable Farming Scheme.
Lewis said the report will also help guide priorities linked to Wales’ commitment to protect and effectively manage 30% of land and sea by 2030.
“This baseline, taken together with the evidence highlighted in our SoNaRR report will guide our future priorities, and ensure that Wales’ response to the nature and climate emergencies is grounded in robust evidence,” she said.
“By acting together now, we can secure a nature-rich, climate-resilient Wales that supports the wellbeing of current and future generations.”
NRW said the data and learning from the assessment is already being used to shape its forthcoming State of Natural Resources Report, due to be launched next week on Thursday (Jan 29).
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