A company called Ocean Winds has been given permission to build a huge offshore wind farm in the Celtic Sea, the government confirmed in its Industrial Strategy update published in April 2026. The site could eventually generate up to 4.5 gigawatts of electricity — enough to power around 4.5 million homes.

The Celtic Sea sits between Wales, south-west England and Ireland. What makes this project unusual is that it uses floating wind turbines — machines anchored to the seabed with cables, rather than fixed to rigid towers. This technology is the only way to harvest wind power in the deep waters beyond the continental shelf, where the seabed is too deep for traditional fixed structures.

Ocean Winds is a joint company run by two big European renewable energy firms: EDP Renewables and ENGIE. Getting seabed rights is just the first step. The project still needs a series of approvals: a Contract for Difference (a government agreement that guarantees a certain price for the electricity), connection to the national grid, and planning permission through a special fast-track process for major infrastructure projects.

How devolved government affects this

The UK's offshore waters are controlled by Westminster, but the Welsh government and potentially the Irish government will have a say in onshore development and the benefits that flow to their regions. Both nations will be watching this project closely as it moves through approvals.

Why Japan matters

The government also announced an investment deal with Japan covering clean energy projects. Japan has made floating offshore wind a strategic priority because its own coastline is mostly too deep for fixed turbines. Japanese companies have been actively looking to invest in and supply parts for Atlantic wind projects. The government's decision to pair the Japan deal with the Ocean Winds award suggests it sees them as part of the same industrial strategy.

The bigger picture

The government wants Britain's electricity system to run on clean power by 2030. Floating wind farms take longer to build than fixed ones, so experts expect the Celtic Sea project — if fully built — to contribute more power after 2030 than before. This matters for long-term energy security, but it is not the main route to hitting the 2030 target.

The real question for investors and developers now is whether all the approvals will actually happen, and whether the financing structures make sense once projects move from the planning stage into real construction.