Crown Estate boosts UK Treasury with offshore wind profits

The Crown Estate has announced a substantial net revenue profit of £1.1bn ($1.5bn) for the financial year 2024/25, primarily fuelled by option fees from its fourth round of offshore wind leasing (Round 4).

This income has bolstered its contribution to the UK Treasury to £5bn over ten years.

The passing of the Crown Estate Act in March 2025 has empowered the Crown Estate with new borrowing and investment capabilities, allowing it to enhance value creation across its diverse portfolio.

The changes are expected to yield benefits not just financially but also socially and environmentally for the UK populace.

Despite a slight decrease in net asset value from £15.5bn in the previous year to £15.0bn, the Crown Estate demonstrated resilience across its marine, urban and rural portfolios.

Valuation increases were observed in both urban and rural sectors despite a reduction following Round 4’s option fee recognition within marine valuations.

Marine operations saw an uptick beyond Round 4 due to effective management strategies for seabed assets such as cables and pipelines.

A commitment towards clean energy was evident as progress continued both Round 4 and Round 5 projects alongside the capacity increase programme for existing wind farm capacity expansions aiming at an additional output potential of up to 4.7GW.

The UK government has earmarked £400m for investment in key port and supply chain infrastructure, reinforcing the country’s commitment to expanding its leading position in the offshore wind sector.

The UK power sector is expanding its clean energy capacity, with the Crown Estate’s Round 4 expected to add up to 8GW, powering eight million homes.

The Round 5 focuses on floating offshore wind technology and aims for 4.5GW generating capacity. Equinor and Gwynt Glas were selected as winning bidders in June 2025 for two different projects.

Crown Estate CEO Dan Labbad stated: “Across our diverse portfolio, we are laying the foundations for dependable long-term growth — supporting housing delivery, advancing vital industries such as science and technology, promoting regenerative agriculture, and driving sustainable urban development.

“We are also strengthening the UK’s energy security by working closely with our customers and partners to bring stability to the offshore wind sector. Thanks to new legislation, we now have greater flexibility to invest across our portfolio, increasing our resilience and potential, and enabling us to create lasting benefits for the country and its finances.”

The capacity increase programme could further enhance the current 12GW capacity of existing wind farms by an addition of 4.7GW, contributing to a potential offshore wind pipeline around England, Wales and Northern Ireland up to 50GW.

This includes 17GW either in planning or already consented and another 13GW under construction or secured through contracts for difference.

All profits generated by the Crown Estate are directed back into public funds via the Treasury. The revenue generated in Round 4 is anticipated to decrease to £25m per year from January 2026.