In a significant step towards the UK’s clean energy goals, the government has announced a record 131 new renewable energy projects, following the latest renewables auction. These projects, which include substantial investments in onshore wind, solar, and tidal energy, are expected to provide enough power to meet the needs of 11 million homes. This achievement marks a dramatic turnaround from last year’s disappointing auction results, which saw no offshore wind projects approved.
The outcome of this auction represents a major advancement in the UK’s ambition to become a global leader in clean energy. The government increased the auction budget by 50%—a record funding boost—leading to a marked improvement in the number of projects supported. The auction secured nine offshore wind contracts, including two major projects off the Yorkshire coast: Hornsea 3 and Hornsea 4, which will become Europe’s largest and second-largest wind farms, respectively.
The revitalisation of offshore wind development in the UK signals a course correction after the failures of the previous auction round. These new projects are central to the government’s strategy to enhance energy independence and security, aiming to shield families and businesses from the volatility of global fossil fuel prices.
The 131 projects awarded this year exceed the 92 projects agreed in the previous auction round, underscoring the UK’s progress in scaling up its renewable energy capacity. Projects have been agreed upon at prices well below the upper limits set for the auction, ensuring the government has secured a record amount of clean power at a lower cost to consumers, thereby delivering both value for money and affordable energy.
Major Offshore Wind Developments and Expanding Renewables Portfolio
The success of this auction has put offshore wind back at the forefront of the UK’s clean energy strategy. The projects awarded include Europe’s largest floating offshore wind farm, the Green Volt project, which will double the continent’s total installed floating offshore wind capacity. Six new tidal projects were also approved, reinforcing the UK’s position as a global leader in tidal energy, with nearly half of the world’s operational tidal stream capacity located in UK waters.
Additionally, the auction saw the approval of 115 new onshore wind and solar projects, exceeding the total number of projects delivered in the previous round. This includes three major solar farms, expected to power around 400,000 homes, and significant onshore wind developments, further contributing to the UK’s clean energy mission.
Government and Industry Reactions
Energy Secretary Ed Miliband welcomed the results, stating, “Today, we have achieved a record-setting round for enough renewable power for 11 million homes, which is essential for energy security for families across the country. It is another significant step forward in our mission for clean power by 2030, bringing Britain energy independence and lower bills for good.”
Michael Shanks, Energy Minister, emphasised the economic benefits of the new projects, noting that securing new wind turbines, solar panels, and advanced technologies such as tidal power would “boost growth, catalyse investment, and support good jobs across Great Britain.” He highlighted the value-for-money aspect of the auction, which delivered the largest round to date at competitive prices, furthering the government’s mission for clean energy by 2030.
Neil McDermott, CEO of the Low Carbon Contracts Company, expressed optimism over the future, saying, “The results of AR6 increase our total renewable electricity Contracts for Difference (CfD) portfolio to 39GW and 372 contracts. This success enhances our ability to decarbonise the economy and unlocks exciting new opportunities for innovation and growth.”
Looking Ahead: Accelerating Clean Energy Deployment
The government is now working with industry partners to build on the success of this latest auction, looking for ways to accelerate the deployment of renewable energy projects. This includes reviewing the Contracts for Difference scheme and other energy policies to enable faster grid connections for new projects, particularly offshore wind.
Over the past three months, the UK government has taken several steps to strengthen its clean energy strategy. It has lifted the ban on onshore wind development in England, launched the state-backed Great British Energy initiative in partnership with the Crown Estate with £8.3 billion in funding, approved several major solar farm projects, and established the Clean Energy Mission Control Centre to fast-track clean power deployment.
These measures are all aimed at meeting the target of a fully decarbonised electricity grid by 2030 and achieving net zero by 2050, solidifying the UK’s ambition to become a clean energy superpower.
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