Securing the Future of Floating Offshore Wind: Why Allocation Round 7 Must Deliver for FLOW Test and Demonstration Projects in the Celtic Sea

By Charlie Allen, FLOW Project Manager.

With the Allocation Round 7 Marine Energy Wales consultation response submitted, we’ve been reflecting on whether this marks a significant milestone – especially for test and demonstration projects in the Celtic Sea. There’s a growing sense that 2025 could be a pivotal year in shaping the future of offshore wind in Wales and the South West. It has been encouraging to see their prominence in the latest consultation, reflecting the growing recognition from key stakeholders—including the Department for Energy Security and Net Zero (DESNZ)—of their importance to the industry’s development. 

Since 2021, Marine Energy Wales and the Celtic Sea Developer Alliance have been a strong advocate for test and demonstration projects, highlighting their crucial role in unlocking the full potential of floating offshore wind in the region. Through engagement with policymakers, industry leaders, and local communities, we will continue to push for the necessary support, funding, and regulatory frameworks that will enable these projects to deploy in the waters of the Celtic Sea. 

These projects are not just stepping stones—they are catalysts for driving innovation, reducing technological risks, and strengthening investor confidence. The success of these projects supports the future of the industry in reducing costs ahead of commercial scale deployments, such as the 4.5 GW (3 x 1.5 GW) of projects which are part of The Crown Estate’s Floating Offshore Wind Leasing Round 5. 

We welcome the intention from DESNZ to support multiple test and demonstration projects in AR7, across different geographic regions to enable early investment in infrastructure and manufacturing capacity. Applications for AR7 are expected to open in June and an announcement on successful bidders is expected before the end of 2025. 

Whilst the UK Government has given the industry positive signals through the latest consultation, this isn’t enough. Ensuring that the focus of AR7 is on delivery is essential. Reducing competitive tension and minimising cost-cutting pressures is key for enabling these projects to come forward. Success for the industry in 2025 is DESNZ creating a mechanism, such as a dedicated ringfence, so that all eligible test and demonstration projects succeed in AR7. Anything short of this will be considered a missed opportunity, risks further decreasing investor confidence, and could delay critical investment in infrastructure and supply chain in the region. 

The Celtic Sea Developer Alliance will continue to facilitate collaboration amongst developers, work with industry and key stakeholders, to ensure that test and demonstration projects serve as a cornerstone for a thriving floating wind industry in the Celtic Sea. 

What does success look like to you and your organisation for offshore wind in the Celtic Sea in 2025? 

Want to know more about offshore wind in the Celtic Sea? Reach out to Charlie Allen, Floating Offshore Wind Project Manager, charles.allen@marineenergywales.co.uk or head to our website to find out more about floating offshore wind, and the Celtic Sea opportunity. 

Also, don’t forget about our Marine Energy conference, the perfect opportunity to find out more about Marine Renewables in Wales. 

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