Greenpeace is preparing to take legal action targeting the estate manager of King Charles, alleging it is abusing its monopoly position over the seabed.
Greenpeace asserts that the Crown Estate has increased costs for wind energy developers while enhancing its own profits and the royal family's revenue through high-pressure auctions for offshore leasing rights.
As the legal owner of the seabed surrounding England, Wales, and Northern Ireland, the estate oversees the sale of rights for sea-based wind projects. It has benefited significantly from the sector's growth, securing substantial option fees from clean power developers aiming to secure areas for windfarm development.
The estate recorded a earnings of £1.1 billion for the financial year ending in March, doubling the amount from just two years prior.
Greenpeace UK's co-executive director stated, "The seabed should be administered for the benefit of the nation and common good, not viewed as an property to be exploited for financial gain and excessive incentives."
He continued, "It's essential to leave no stone unturned in finding solutions to lower power costs that are causing hardship for many of households."
"Considering the significance of low-cost energy and renewable electricity to the government's agenda, the chancellor should exercise her powers to request an external examination of these bidding systems. If the problem isn't resolved before the subsequent phase, we may have to let the courts decide on whether the existing methods are legal."
Greenpeace contends that the estate has a legal obligation to avoid abusing its monopoly position as proprietor of marine areas, but is currently violating this responsibility.
They expressed concern that the estate is restricting seabed supply to keep costs elevated, which could impede the growth of marine renewable energy in the United Kingdom.
The estate has reportedly dismissed Greenpeace's claims, arguing that the lobby group has misinterpreted its legal duties.
Approximately twelve percent of the estate's earnings are allocated to the royal family to support its activities. This share was lowered from twenty-five percent in 2023 to balance the surge in profits from offshore wind projects.
The UK's wind energy industry is at a pivotal moment as the government aims to increase twofold onshore wind and increase fourfold offshore wind capacity by the end of the decade.
The estate, which also includes a portfolio of real estate in the capital and rural estates, is worth at £15 billion. Its property in the city, located in prime central areas, are estimated at £7.1 billion.
A representative for the estate commented, "The group has misinterpreted our legal duties and auction procedures. Option fees are not set by the estate. They are determined by developers through transparent bidding and reflect industry interest at the moment. Since our income is returned to the government, option fees guarantee that the public gain from the fair value from using our limited and valuable marine territory."
The spokesperson continued, "The Crown Estate is speeding up offshore wind in line with government policy to advance the shift to clean power rapidly and improve energy security."
The finance ministry was approached for comment.
