The Crown Estate has reported a profit of £210 million from its Welsh assets for the financial year 2025/26, driven overwhelmingly by option fees from the Mona offshore wind farm development. This marks a slight decrease from the £253.4 million recorded in 2024/25, which was also boosted by windfarm revenue.
Mona Offshore Wind Farm Drives Profits
Approximately £200 million of the operating profit came from option fees related to the 1.5GW Mona offshore wind farm, located about 30km off the north Wales coast in the Irish Sea. The project, developed by a joint venture including oil giant BP, is part of the Crown Estate's offshore wind leasing round four and lies 87% within Welsh waters. These option fees were time-limited and ceased after Mona entered its pre-generation phase earlier this year. Excluding these fees, the Crown Estate's operating profit in Wales would have been just £9.8 million.
Call for Devolution of Crown Estate to Wales
The publication of these figures comes amid ongoing calls for the devolution of the Crown Estate's Welsh assets to the Welsh Government, similar to the arrangement in Scotland. Both the previous Labour administration of Eluned Morgan and the new Plaid Cymru government have advocated for this change. Currently, the Royal Family receives 12% of the income from Crown Estate assets in England, Wales, and Northern Ireland, with the remainder going to the UK government. In Scotland, profits from Crown Estate Scotland are distributed to the Scottish Government, though the UK Treasury deducts an increasing amount from Scotland's block grant to offset these revenues, reaching £40 million by 2028-29.
Celtic Sea Floating Offshore Wind Projects
The Crown Estate's Welsh assets were valued at £290 million in 2025/26, a 22% year-on-year increase following the awarding of development contracts for three floating offshore wind farms in the Celtic Sea under leasing round five. These projects are projected to create 5,000 jobs and contribute £1.5 billion to the economy, though they are not expected to become operational until the mid-2030s. Only one of the three wind farms lies solely in Welsh waters off Pembrokeshire, with another straddling English and Welsh waters and a third entirely in English waters. The option fees for round five were set at just £1.6 million, reflecting challenging global market conditions and the higher risk profile of floating offshore wind technology.
Investment in Supply Chain
Since 2024, the Crown Estate has invested £18 million in projects to support the UK's offshore wind supply chain, including £5 million specifically for the Celtic Sea floating wind farms. Seven projects in Wales have benefited from this investment, part of a wider commitment of up to £400 million across the UK.
CEO and New Commissioner Appointed
Dan Labbad, chief executive of the Crown Estate, said: "This has been an important year of progress for The Crown Estate in Wales, as we continue to grow our ambitions for offshore wind and the marine economy across the nation. Over the past few years, we have made significant strides to strengthen our operations through local partnerships, investment and engagement. Securing agreements for three floating offshore wind projects in the Celtic Sea reflects these efforts, with the potential to create over 5,000 jobs and contribute £1.4 billion to the wider economy."
The Crown Estate has also appointed Welsh entrepreneur Michael Plaut as a new commissioner to its board, increasing the board size from eight to 12 following the Crown Estate Act 2025. Mr Plaut, former CBI Wales chair and current non-executive director on the BBC board, will provide advice on Welsh conditions and priorities. Ric Lewis, chair of the Crown Estate, said: "It’s fantastic to be welcoming Michael to the Crown Estate board. Michael’s depth of experience across business, public service and cultural institutions, combined with his deep connection to and understanding of Wales, will be a valuable addition."
Borrowing Powers and Future Implications
The Crown Estate Act 2025 also grants the body the ability to borrow against its asset base, though the borrowing framework is still being finalised with the Treasury. If the Crown Estate were devolved to Wales, the Welsh Government might seek similar borrowing powers. However, the Crown Estate's most valuable assets, including Regent Street and St James's in London valued at £7.1 billion, are held under the England and Wales portfolio, meaning any borrowing against Welsh assets alone could be less beneficial on a per capita basis compared to the current arrangement.
