Energy Secretary Ed Miliband has allocated £1.1bn annually for offshore wind developers, a figure some industry experts deem too low to meet the UK's 2030 decarbonisation targets. The budget includes £900m for fixed turbines and £180m for floating platforms.
RenewableUK, an industry lobby group, warned the funding covers only about a quarter of the 20GW of eligible projects with planning permission. Executive director Ana Musat stated: 'The budget announced today will not maximise investment in new offshore wind farms.' One industry source had expected up to £2bn annually.
Renewables supplied roughly half of UK electricity in 2024, with wind accounting for 30% for the first time, overtaking gas. However, further investment is needed to eliminate carbon emissions from electricity by 2030, a target opposed by the Conservatives and Reform UK.
Government sources dismissed doubts about the 2030 goal, calling the budget 'big backing by the Treasury.' The final budget may increase if projects offer value for money, and contracts will now last 20 years instead of 15 to attract lower prices.
Chris Stark, leading clean power efforts, expects bids to exceed fixed offshore wind funding. Minister Michael Shanks said: 'This auction is another step towards delivering the clean power this country needs.' The budget represents a worst-case cost under the Contracts for Difference scheme, which stabilises developer returns.
