UK Announce Record Funding for Clean Energy
- Green Energy Business Funding World
Global Business Magazine- 4 minutes read
Boosting energy security, securing cheap power for families, and unlocking economic growth and jobs for the country, the UK’s Energy Secretary Ed Miliband on Wednesday said that the budget for this year’s renewable energy auction is being increased by $641.75 million to more than $1.93 billion.
This record funding will help in building new green infrastructure and will accelerate the delivery of clean, cheap, low-carbon electricity to families and businesses, generated by renewable energy technologies such as wind turbines and solar panels as part of the mission to deliver clean power by 2030.
Families across the country have suffered during the cost of living crisis, as the UK’s over-reliance on fossil fuel markets was exploited by Putin. Investing in clean energy is part of the government’s plans to make Britain a clean energy superpower. This will boost the country’s energy independence, so that families and businesses are never left that vulnerable again.
This includes $1.41 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.
The uplift comes on the day of the first meeting of the Clean Energy Mission Board – chaired by the Energy Secretary and attended by Ministers from across Whitehall – as part of plans for a mission-driven government. The board will meet to ensure a relentless focus on delivering the mission of clean power by 2030 and accelerating towards net zero.
Delayed Energy Independence
Speaking on the occasion, Miliband said that last year’s auction round was a catastrophe, with zero offshore wind secured, and delaying the UK’s 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 bill payers, and become a clean energy superpower,” he noted.
Industry will now bid for a share of the funding through the government’s sixth renewable auction – known as the Contracts for Difference scheme – which provides developers with initial subsidies for clean electricity projects across Britain with a built-in design to keep costs low for bill payers.
He said that these subsidies will be paid back when wholesale electricity prices are higher than the agreed Contract for Difference price. This was seen over Winter 2022-23, when Contracts for Difference payments reduced the amount needed to fund government energy support schemes by around $23.10 per typical household.
The scheme’s design means the central government’s budget will not be impacted, following findings from a Treasury spending audit revealed $28.24 billion of unfunded pledges inherited from the previous government.
“Overall, the funding uplift represents more than a 50% increase on the budget previously set in March, driving clean energy investment in the UK, supporting high quality jobs in industrial heartlands and coastal communities, while protecting household bills from volatile fossil fuel prices,” Miliband added.
