The UK Government has announced that it will provide a pot of £265 million in subsidies to support a record number of projects in the sector.
Under the terms of the scheme, offshore wind developers will be able to compete for contracts worth up to £200 million a year, with no limit on capacity cap. There will also be £55 million a year available for less established renewable technologies, including floating offshore wind, tidal, geothermal, and wave power. Of this, £24 million is ringfenced support of floating offshore wind projects. The government will also make £10 million available to developers of onshore wind and solar farms, with a total capacity cap of 5 GW, and a 3.5 GW cap for each type.
The government said that this will help it meet its manifesto commitment to ensure the UK has 40 GW of offshore wind farms by 2030.
Anne-Marie Trevelyan, UK Energy Minister, said: “The Contracts for Difference scheme has helped the UK become a world leader in clean electricity generation and lowered prices for consumers. The new plans will support the next generation of renewable electricity projects needed to power our homes and meet our world-leading climate change targets.”