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Energy Transition, Electric Power, Renewables
January 30, 2025
HIGHLIGHTS
Review of Marine Protected Areas
New Marine Recovery Fund in 2025
Helps to unblock 16 GW offshore wind
The UK announced Jan. 29 a package of environmental measures for the offshore wind sector aimed at supporting capacity growth while protecting the marine environment.
The package includes the designation of new Marine Protected Areas or the extension of existing MPAs, which the government said would help unblock planning barriers to 16 GW of new offshore wind and enable up to GBP30 billion of private investment.
The designations will be delivered by the Department for Environment, Food and Rural Affairs and funded by offshore wind developers that pay into a new Marine Recovery Fund.
The fund, set to launch in late 2025, will give developers the option of funding the delivery of strategic environmental protection measures as compensation for developing their projects.
"Multiple offshore wind projects are at risk because there are currently no ecologically effective options that developers can deliver themselves to compensate for their unavoidable impacts on seabed habitats within Special Areas of Conservation and Marine Conservation Zones," Minister for Water and Flooding Emma Hardy said in a statement.
"Without suitable measures, these projects cannot be delivered."
A range of offshore wind projects will be eligible to participate, including many already in operation, according to Defra.
The UK is aiming to have 43 GW to 50 GW of offshore wind capacity by 2030 as part of an ambition to reach at least 95% low-carbon generation by that date.
In December 2024, the government outlined a wide-ranging plan to help it achieve that target, including measures to clean up the UK's grid connection queue and streamline planning processes.
On the planning side, the government laid out new rules Jan. 23 to make blocking offshore wind developments and other major infrastructure projects more difficult.
The latest move to establish the Marine Recovery Fund is a welcome development, but "isn't the end of the story," according to Nathan Bennett, head of strategic communications at trade group RenewableUK.
"[Government] will need to continue to keep going if it wants to overhaul planning for offshore wind," Bennett said in a post on X, formerly known as Twitter.
"For example, Defra will need to clarify policy around seabirds, resourcing of the planning system will need to increase etc. But the momentum is certainly there."
S&P Global Commodity Insights reporter Alex Blackburne produces content for distribution on Capital IQ Pro.