Clean energy subsidy auction up by £500 million

Wind of change (Copied from Tortoise Media)

The Labour government boosted the nation’s annual clean energy subsidy auction by £500 million yesterday, making record amounts of money available to developers and bringing the total on offer to £1.5 billion. This year’s extra cash is a bid to avert 2023’s catastrophic offshore wind contracts auction, which received zero bids. Ed Miliband, the energy secretary, has offered £1.1 billion for oceanic wind farm developers, with the rest of the money split between solar, tidal and onshore wind projects. The scheme supports initial development and offers a guaranteed price for the electricity that companies generate. Keith Anderson, CEO of ScottishPower, welcomed the additional spend, saying it would “unlock billions in private investment.” Analysts at Citi insisted that greater investment is needed if the government is to quadruple offshore wind to hit its 60 GW target by 2030. Every year, the UK offers a pot of money for renewable energy developers to bid for, subsidising clean energy generation. The auction will take place in August with successful projects announced in September.