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Energy: Wind Farms

House of Lords written question – answered on 16th June 2011.

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Photo of Lord Berkeley Lord Berkeley Labour

To ask Her Majesty's Government, further to the Written Answer by Lord Sassoon on 18 May (WA 340), what guidance is given to companies seeking to develop offshore wind farms to assess the charges to be levied by the Crown Estate; how the scope for exports and competition within the energy industry affects the revenue to the Crown Estate; and how they intend to fix the long-term grant to the Royal Family from the Crown Estate in place of the Civil List if the future revenue of the Crown Estate from offshore wind generation is unknown.

Photo of Lord Sassoon Lord Sassoon The Commercial Secretary to the Treasury

The Crown Estate's competitive offshore renewable licensing rounds are subject to open terms and conditions, each notified at the time the licensing round is announced.

It is for those seeking permission to operate offshore renewable schemes to determine whether and how they should export any of the energy they generate. They are best placed to assess the competitive market and they tender for participation in the light of their assessments of the market with full knowledge of the commercial terms of the Crown Estate lease. The Crown Estate receives its revenue (rent) based on the amount of energy generated on the seabed under its control, regardless of the route of export. It makes decisions about participation in each licensing round, in line with its obligations under the Crown Estate Act 1961, to maintain and enhance the return obtained through the management of its property portfolio.

Details of the operation of the new sovereign grant will be announced when the Bill is published later this year.

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