The rapid development of renewable energy capacity is central to the delivery of the EU's target of a 20 % renewable energy contribution by 2020. Wave and tidal energy is expected to provide a share of the UK's renewable electricity by this date. As part of this, The Crown Estate launched the Further Scottish Leasing (Saltire Prize projects) and Demonstration Leases Round to offer interested organisations opportunities to obtain Agreement for Lease and Lease options in Seabed within the territorial waters around the UK forming part of the Crown Estate.

As the owner of the majority of the seabed within the 12 nautical mile limit of UK territorial waters The Crown Estate has the power to grant leases for the development of wave and tidal energy sites within that area, whilst under the Energy Act 2004 The Crown Estate has the power to license the use of the seabed for the generation of renewable energy on the continental shelf within the UK Renewable Energy Zone. The Crown Estate's permission is also necessary to place structures on or lay cables over the seabed and the foreshore where it is Crown owned.

Accordingly, The Crown Estate has a central role in the delivery of offshore renewable energy. The Crown Estate has already made available areas of seabed for the development of offshore wind farms in various areas around the seabed within the territorial waters around the UK forming part of the Crown Estate, and for wave and tidal projects.