The Crown Estate reported a decline in annual operating profit to GBP 1.2 billion (approximately EUR 1.4 billion) from GBP 1.4 billion (approx. EUR 1.6 billion) in the previous year due to lower offshore wind Round 4 option fee income, as the Round 4 projects started entering the construction phase. Excluding the Round 4 option fees, operating profit rose 5 per cent to GBP 370 million (approx. EUR 435 million), while revenue from existing offshore wind farms increased 20 per cent to GBP 117 million (approx. EUR 138 million).
Over the year, the Crown Estate returned GBP 487 million (approx. EUR 573 million) to HM Treasury, bringing total contributions to GBP 5.1 billion (approx. EUR 6 billion) over the past decade, according to its financial report released on 25 June.
Alongside the financial results, the UK seabed manager highlighted that offshore wind capacity in its waters has reached 13 GW, up from 12 GW, with 36 wind farms now operating in its marine portfolio.
The pipeline of offshore wind capacity has increased to 56 GW, with an expanding offshore leasing and development programme as early Round 4 projects enter construction.
In the Offshore Wind Seabed Leasing Round 4, held in 2021, the Crown Estate selected six projects, which signed their Agreements for Lease in 2023, kicking off the three-year period during which the developers were paying annual option fees.
The six Round 4 offshore wind farms are RWE’s 3 GW Dogger Bank South East & West , JERA Nex BP’s 1.5 GW Mona and the recently discontinued 1.5 GW Morgan , TotalEnergies and Corio’s 1.5 GW Outer Dowsing , and the 480 MW Morecambe , developed by Cobra and Flotation Energy, now owned by Copenhagen Infrastructure Partners (CIP).
“The first two round 4 projects entered the construction phase this year and together could generate enough clean energy to power another two million homes. Meanwhile, a tender for the Morgan project site, which was handed back by its developers after missing out on the Government’s Contract for Difference funding in AR7, is due to launch over the coming months. As anticipated, income from Round 4 option fees reduced from £1,073m to £875m in the year”, the Crown Estate said.
In its financial report, the Crown Estate also noted a major change in investment policy following new parliamentary powers granted in 2025, under which it will now retain a larger share of gross revenue for reinvestment, increasing from 27 per cent to 60 per cent in fiscal years 2026 and 2027, pending finalisation of its borrowing framework with HM Treasury support.
The organisation estimates it can now invest up to GBP 5 billion (approx. EUR 5.9 billion) over the next decade, significantly expanding its ability to support offshore wind growth, energy security, and related industrial development. Planned investment priorities include up to GBP 400 million (approx. EUR 471 million) for offshore wind supply chain capacity, alongside broader programmes in science, housing, and urban regeneration.
“With the new powers approved by Parliament, retaining more revenue for investment, we can now go further – boosting long-term investment in these sectors and generating increased returns for public spending” , said Dan Labbad , Chief Executive of the Crown Estate.
“Our role is to steward our national assets responsibly, increasing value for the public finances and generating wider social and environmental benefits over time – supporting energy security, economic growth and regeneration.”
The seabed manager’s Marine portfolio continued to be a key driver of performance, with operating profit in this unit rising to GBP 175 million (approx. EUR 206 million), supported by higher wind generation and capacity additions.
In its 2025 results, the Crown Estate highlighted that it had awarded rights for new offshore wind projects in the Celtic Sea and was preparing further leasing rounds.