Great Britain’s latest renewable energy auction has successfully secured enough clean electricity projects to power 11 million homes, following record funding from the Labour government.
The £1.5 billion auction will support 131 new projects, including wind farms, solar farms, and tidal power initiatives. This is a significant increase from last year’s funding, which was seven times lower.
This sixth auction in the series is expected to spark a wave of new investments and job creation. Developers will receive a guaranteed price for each unit of clean electricity they produce, with costs covered by energy bills.
Energy Secretary Ed Miliband commented, “Today’s auction sets a new record, securing renewable power for 11 million homes. This is crucial for ensuring energy security for families across the UK. It represents a major step towards our goal of clean power by 2030, aiming for energy independence and lower bills.”
Miliband also highlighted the auction’s success in advancing solar energy projects, boosting onshore wind, and securing the world’s largest commercial floating offshore wind project. He praised the collaboration between the government and the energy industry in driving investment.
The majority of the funding went to offshore wind farms in UK waters, potentially increasing the UK’s capacity by 5GW. This could provide enough clean electricity for over 3 million homes by the end of the decade.
However, Greenpeace raised concerns that the auction has only secured half of the offshore wind capacity needed annually to meet the government’s 2030 targets. Ami McCarthy, Greenpeace UK’s political campaigner, said, “While 5GW of offshore wind is a positive step, it only meets half of what’s needed each year. The previous renewables auction was a major setback for clean energy. The new government faces a significant challenge.”
In addition to offshore wind, the auction awarded contracts to approximately 90 new solar farms with a combined capacity of 3.3GW, 20 new onshore wind farms with nearly 1GW of capacity, and six tidal power projects. The world’s largest planned floating offshore wind farm also received a contract.
The success of this auction is crucial for the government’s election promise to double onshore wind, triple solar power, and quadruple offshore wind by 2030. Labour acted swiftly after winning the July general election, increasing the auction’s value by 50% compared to the previous Conservative administration’s commitment. This move was intended to revive investment in the UK’s clean energy sector, which had stagnated under the previous government.