UK Government boosts renewable energy auction to record breaking £1.5bn

An additional £500m has been added to the Conservative launched budget, which was originally branded a ‘missed opportunity’ by RenewableUK chief Dan McGrail. 

A Labour spokesperson has said Downing Street is looking to compensate for the ‘catastrophe’ of last year’s auction, when no offshore wind developers chose to bid for projects, despite this being the UK’s leading source of clean electricity.

Allocation Round 6 of the Contracts for Difference [CfD] scheme will see £1.1billion offered to offshore wind, which it is hoped will boost a sector struggling with rising costs and delays. According to Ed Miliband MP, Secretary of State for Energy Security and Net Zero, this could ‘restore the UK as a global leader for green technologies and deliver the infrastructure we need to boost our energy independence, protect billpayers, and become a clean energy superpower.’

£185million will also be allocated to established technologies like onshore wind and solar, an increase of £65million on the Tories’ provision. £270million is being ringfenced for emerging tech, including floating offshore wind and tidal, up from the previous £165million. Successful projects will be announced in September 2024. 

‘Last year’s auction round was a catastrophe, with zero offshore wind secured and delaying our move away from expensive fossil fuels to energy independence,’ said Mr Miliband. ‘Instead, we are backing industry to build in Britain, with this year’s auction getting its biggest budget yet.’

Labour’s current energy pledges include total decarbonisation of the UK grid by 2030, five years earlier than the Conservatives had planned for. This will require trebling solar capacity, doubling onshore wind and quadrupling offshore wind. But major issues exist beyond funding, with a limited workforce and major delays to grid connection prevailing. Energy storage is also a cause for concern and requires significant expansion. 

However, since taking power earlier this month, Prime Minister Keir Starmer has overseen a raft of policy changes welcomed by the renewables sector. This includes lifting a de-facto ban on onshore wind introduced through a footnote in planning regulations. A dedicated taskforce has also been reinstated for this, along with a separate team for solar. Reforms already developed but not delivered on planning are also being revisited, with input from the National Infrastructure Commission, National Grid, and Ofgem. 

‘It’s great the Government has taken the positive decision to increase the budget in the forthcoming CfD auction. This will mean more shovel ready wind farms and solar parks will be built in the coming years, representing real action on climate change,’ said Sarah Merrick, Founder and CEO of community renewable ownership company Ripple Energy. ‘The new government has definitely hit the ground running, with laser focus on delivery of new home grown, low cost power. At Ripple, we remain dedicated to ensuring this energy becomes accessible to real people through cooperative ownership.’