The UK’s renewable energy budget has been increased to a record £1.5 billion, Ed Miliband announced on Wednesday.
Of that, £1.1 billion will be allocated for offshore wind, which the government described as “the backbone of the UK’s clean energy mission”.
The funding uplift represents more than a 50 per cent increase on the budget previously set in March. The renewable energy industry will bid for the sum in order to deliver clean energy projects in the UK.
The Department for Energy Security and Net Zero said the higher budget will “boost energy security, secure cheap power for families, and unlock economic growth and jobs for the country”.
It 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”, the department added.
Firms in the renewables industry will 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.
Contracts for Difference works by developers bidding for contracts to help deliver renewable energy projects, with the scheme providing a guaranteed price for the clean electricity they generate.
The Department for Energy Security and Net Zero said the scheme gives industry greater certainty to invest, knowing that when electricity prices fluctuate, they will always get a set price for their projects.
Meanwhile, Mr Miliband said it demonstrates that Labour is “backing industry to build in Britain”.
Contracts are awarded through a series of auctions, where the lowest price bids are successful.
It is aimed at encouraging lower energy bills, as the subsidies are paid back to the government when wholesale electricity prices are higher than the agreed Contract for Difference price.
In a statement, the Department for Energy Security and Net Zero said: “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.”
In a statement, Mr Miliband said: “Last year’s auction round was a catastrophe, with zero offshore wind secured, and delaying our 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 billpayers, and become a clean energy superpower.”
Energy Minister Michael Shanks added: “It is our mission for the UK to be more energy secure and to do that we need more renewable energy projects connected to the grid and powering our homes.
“Increasing the budget by more than 50 per cent will boost industry confidence to back clean energy, attracting cutting edge clean technologies to Britain as we accelerate to a decarbonised power sector by 2030.”