The Crown Estate owns rights to the UK territorial waters where many wind farms are now planned. A clause currently exists in the Crown Estate's seabed leases which allows offshore-wind projects to be terminated if oil and gas reserves are found in the area. Previously no compensation had been payable and this factor has been a barrier to obtaining offshore-wind finance.
The new compensation regime will be based on the existing compulsory onshore-purchase agreements, with the loss of future profits taken into account, as well as capital spend.
Renewable UK's offshore wind-development manager Paul Reynolds said: "After nearly seven years of lobbying, Renewable UK is delighted to welcome this ministerial statement, which provides greater clarity on an issue which had been a significant barrier to investors."
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