UK Boosts Renewable Power Auction Budget by 50% to 1.5 Billion Pounds

The UK government has increased its annual renewable power auction budget by 50% to 1.5 billion pounds. The goal is to achieve decarbonization of the electricity sector by 2030, spurring investment in renewable power projects. This move restores the UK's leadership in green technologies and energy independence.

The UK government has raised the budget for its annual renewable power auction by 50% to 1.5 billion pounds, aiming to boost the country's renewable capacity. The new Labour government aspires to decarbonize the electricity sector by 2030, necessitating rapid growth in wind and solar power.

The increase in budget to 1.5 billion pounds, up from the previous 1 billion pounds, will allow more projects to secure government-backed price guarantees, known as Contracts for Difference (CfDs). These contracts assure a minimum price for the electricity produced, ensuring financial stability for renewable developers.

Energy Secretary Ed Miliband announced that 1.1 billion pounds of the budget will be allocated for offshore wind projects. Industry leaders say this funding is crucial for meeting the UK's ambitious goals, which include expanding fixed offshore wind capacity to 55 gigawatts by 2030.

Companies like Iberdrola, Orsted, and SSE can now bid in the sixth auction round, potentially unlocking billions in private investment and supporting thousands of jobs. However, analysts at Bernstein caution that the increased budget might still fall short of achieving the government's targets, citing past project cancellations and insufficient incentives.

(With inputs from agencies.)