Why have the UK government increased offshore wind subsidies?

You'll also receive our weekly Editor's Digest Newsletter. Full The British government has increased the subsidies available to offshore wind developers by up to two-thirds in an effort to revive new projects in a sector that is struggling with surging costs.

What does COM 2023/668 mean for offshore wind energy?

The deployment of offshore wind energy is at the core of delivering the European Green Deal. The Communication on achieving the EU’s offshore renewables ambitions (COM/2023/668), published in October 2023, underlines the Commission’s continued commitment to reaching the offshore renewables targets and takes stock of the progress achieved so far.

Will £200 million support offshore wind power 8 million homes?

The additional offshore wind capacity resulting from the funding alone could power around 8 million homes. Today’s announcement contains £200 million to support offshore wind projects. This will help meet the manifesto commitment to ensure the UK has 40GW of capacity by 2030.

Does the UK government support offshore wind generation?

The UK government itself is on record as recently as November 2020 claiming that: Government support to unleash the potential of offshore wind generation has seen the cost of it fall by two thirds in the last 5 years. Echoes of these claims are commonplace.

How much does offshore wind subsidy cost?

Eight of the 41 offshore wind farms took more than 50% of that total, with Hornsea taking 11% or £480 million. Statements from official sources, carelessly echoed in the press, may have given the impression that the unit subsidy cost in £/MWh, and thus the total cost to consumers of subsidy to offshore wind has been falling.

What is the Energy Secretary doing with offshore wind?

On the back of this successful auction, the Energy Secretary is working with the industry to accelerate ways that the Contracts for Difference system and other energy policies can be expanded, so that more renewable energy, including offshore wind, can be connected to the grid, and quicker.