Great Britain's latest renewable energy auction has awarded subsidy contracts to eight new offshore windfarms, enough to power 12 million homes. The auction, considered a make-or-break for the government's 2030 clean electricity target, saw energy companies compete for contracts guaranteeing a price for each unit of clean electricity generated.
The government doubled funding for developers to £22bn, expecting the investment to support 7,000 skilled jobs. Contracts were awarded for 8.4 gigawatts (GW) of capacity, including standard seafloor-fixed turbines and two floating windfarms for deeper North Sea areas. Standard windfarms received contract prices of £89.49 per megawatt-hour (MWh) in Scotland and £91.20/MWh in England and Wales, while floating projects secured £216.49/MWh.
Energy Secretary Ed Miliband hailed the result as a record for Britain and Europe, stating: 'We've secured a record-breaking 8.4GW of offshore wind.' He added that the price is 40% lower than building and operating a new gas plant, calling clean power 'the right choice to bring down bills for good'. German utility RWE won contracts for nearly 7GW, including Dogger Bank South and Norfolk Vanguard, while SSE secured a contract for the first phase of its 4.1GW Berwick Bank project.
Although winning bids exceed typical wholesale electricity prices of £81/MWh, experts argue that expanding wind power reduces reliance on expensive gas, lowering market prices. The government says local renewable investment will also shield the UK from volatile global fossil fuel markets.
The auction's success is crucial for meeting election pledges to quadruple offshore wind by 2030. However, the government must secure another 8GW at similar prices next year to reach its 43-50GW target. GMB union secretary Andy Prendergast warned the 'real litmus test' is whether promised jobs materialise, calling it 'a golden opportunity to on-shore supply chains'.
