The Labour government has announced a significant increase in funding for clean energy developers, with the value of its summer subsidy auction rising by 50% to £1.5bn. This move comes after the previous government failed to award any new offshore wind contracts last year. Energy secretary Ed Miliband stated that the increased budget aims to restore the UK as a global leader in green technologies and boost energy independence, while protecting household bills from rising fossil fuel prices.
Offshore wind projects will compete for up to £1.1bn of funding, potentially bringing forward investment in 6-7 gigawatts of capacity, enough to power almost 5m homes. Additionally, onshore wind and solar projects will compete for a share of £185m, and funding for nascent clean energy technologies will more than double to £270m.
The contracts awarded ensure set prices for each unit of clean electricity generated, with any difference between that price and market prices paid for by energy bills. The reset in funding comes as new government data shows a record-breaking year for renewable energy in 2023, with renewables providing 46.4% of the UK’s electricity compared to 36.7% from fossil fuels. Wind power was the largest source of clean energy, with offshore wind providing a record 17% of electricity and onshore wind providing 11.2%. The increased budget for clean energy projects is seen as an important investment signal to the industry, aiming to make Britain a clean energy superpower and spur economic growth.
Source
Photo credit www.theguardian.com