Energy Secretary Ed Miliband has allocated £1.1bn a year for offshore wind projects in a funding round that industry experts say is too limited to meet the UK’s 2030 clean electricity target. The Department for Energy Security and Net Zero confirmed that £900m would go to fixed offshore wind turbines and £180m to floating platforms.
RenewableUK, the industry lobby group, argued the budget would cover only about a quarter of the 20GW of eligible projects with planning permission. Ana Musat, its executive director of policy, said: “The budget announced today will not maximise investment in new offshore wind farms.” One energy industry source told reporters they had expected an annual budget as high as £2bn.
Renewables supplied roughly half of Britain’s electricity in 2024, with wind accounting for 30% for the first time, surpassing gas. Further investment is needed to achieve the government’s goal of decarbonising electricity by 2030, a target opposed by the Conservative Party and Reform UK, who pledge to scrap net zero policies.
Under the Contracts for Difference (CfD) scheme, the government sets a strike price; if market prices fall below it, the Treasury tops up payments to developers. The final budget could rise if ministers deem enough projects offer value for money, and contracts will now last 20 years instead of 15 to attract lower bids. Chris Stark, the official leading clean power efforts, said the government is prepared to “contract more offshore wind generation if we see value for money for the consumer”.
Minister for Energy Michael Shanks called the auction “another step towards delivering the clean power this country needs to end our reliance on volatile global gas prices”. Jess Ralston of the Energy and Climate Intelligence Unit noted that harnessing wind and sun reduces reliance on foreign gas, boosting energy security.
