Energy Secretary Ed Miliband has allocated £1.1 billion annually for offshore wind projects, a figure some industry experts argue is too low to meet the UK's 2030 clean electricity target. The budget includes £900 million for fixed wind turbines and £180 million for floating platforms.
RenewableUK, an industry lobby group, estimates the funding covers only about a quarter of the 20 gigawatts of eligible projects with planning permission. Ana Musat, the group's executive director of policy, stated: 'The budget announced today will not maximise investment in new offshore wind farms.'
One energy industry source had expected an annual budget as high as £2 billion to achieve the government's decarbonisation goal. Renewables supplied roughly half of UK electricity in 2024, with wind accounting for 30% for the first time, surpassing gas.
The government has introduced changes to the auction process, including 20-year contracts instead of 15, to attract lower prices. The final budget could increase if projects demonstrate value for money. Chris Stark, leading clean power efforts, said the government is prepared to contract more offshore wind if it offers value for consumers.
Minister Michael Shanks described the auction as a step towards ending reliance on volatile gas prices, ensuring energy security, and reducing bills. However, the 2030 target faces opposition from the Conservative party and Reform UK, who have pledged to scrap net zero policies.
