Offshore wind boost in UK clean energy budget

Energy Secretary Ed Miliband announced that the budget for this year’s renewable energy auction is being increased by £500 million to over £1.5 billion - a record budget - helping build new green infrastructure as part of the mission to deliver clean power by 2030.  

This includes £1.1 billion for offshore wind – the backbone of the UK’s clean energy mission –  which has more budget available than all of the previous auctions combined, sending a strong signal to industry to invest in UK waters.  

-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.  Instead, we are backing industry to build in Britain, with this year’s auction getting its biggest budget yet. This will 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, says Ed Miliband in a press release.

Industry will now bid for a share of the funding through the Government’s sixth renewable auction – known as the Contracts for Difference scheme. The auction this year is called Allocation Round 6 (AR6).

The increase in budget for offshore wind is an uplift of £300 million.

-A 40 per cent  increase in the AR6 budget for offshore wind is quite positive for UK and for the industry. The increase will probably results in 40 per cent increase in offshore wind capacity installed in the allocations round, says Tor Arne Johnsen, who is responsible for the UK Market in Norwegein Offshore Wind. 

He is referring to analysis from TGS, and adds:

-This exiting news strengthens UK as our most attractive market and the place to be for Norwegian companies. A lot of exciting news are expected from UK the next 6 months. More details around the new Government’s plans in offshore wind, results from the Celtic Sea leasing round and AR6 just to mentioned a few, says Johnsen.

Norwegian Offshore Wind is organising several activities in the autumn to follow closely the latest developments in UK.