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Released May 21, 2025 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The U.K. government has more than doubled its financial backing for the next generation of offshore windfarms to £544 million (US$716 million) following significantly higher offers of interest from the offshore wind sector.
The investment incentive scheme called the Clean Industry Bonus originally had a budget of £200 million (US$263.5 million), but the government said that expressions of interest had "smashed expectations" with "hundreds of bids." The bonus amounts to £27 million (US$35.5 million) for each gigawatt (GW) of offshore wind power developed and is aimed at wind developers that invest in cleaner supply chains or in deprived regions, including coastal towns, traditional oil and gas communities and ex-industrial areas and ports. It bodes well for the next energy auction later in the year and marks a major improvement over the 2023 auction, which was overseen by the previous Conservative Party government, which failed to receive a single bid from offshore wind developers. For additional information, see September 26, 2023, article - U.K. Fails to Attract Any Offshore Wind Bidders.
The extra cash comes just weeks after U.K. Prime Minister Keir Starmer announced a £300 million (US$395 million) fund to attract global offshore wind investment for the U.K. For additional information, see May 6, 2025, article - U.K. Doubles Down on Offshore Wind. Offshore wind in the U.K. currently stands at slightly less than 15 gigawatts (GW), accounting for 17% of the country's electricity generation, while the government's target is to hit 43-50 GW by the end of the decade. Data from industry association RenewableUK, showed that no offshore windfarms were commissioned in the country in 2024 but that there are six projects totalling 6.3 GW undergoing "major offshore installation activities." Three of the projects (2.5 GW) are expected to reach full commissioning this year, while two more (2.5 GW) will begin offshore construction during the year.
U.K. Energy Secretary Ed Miliband said: "Industry has backed our clean energy superpower mission, and we are helping them to deliver it. This is the type of muscular industrial policy Britain needs to create jobs, drive growth and transform the fortunes of industrial towns and cities, delivering our Plan for Change."
The funding was welcomed by RenewableUK's Executive Director of Policy, Ana Musat: "This additional funding has the potential to help secure billions in private investment in new factories manufacturing components for the offshore wind industry across the U.K.. The Clean Industry Bonus is a good starting point as part of a wider industrial strategy which the government is due to unveil in full this summer, and which we hope will be complemented by new policies to support the expansion of U.K. ports. With larger ports, we could secure even more investment in offshore wind manufacturing and turbine assembly".
In another boost for the sector, the Crown Estate, which owns Britain's seabed, has greenlit changes in policy to allow for the rapid expansion of existing high-density offshore windfarms on current seabed leases. The Capacity Increase Programme is attempting to maximize the potential of existing offshore wind lease areas, making it faster and easier for developers to extend existing windfarms. Seven major expansion projects - Awel y Môr, Dudgeon Extension, Sheringham Shoal Extension, North Falls, Five Estuaries, Rampion 2 and Dogger Bank D - were highlighted, representing a total combined capacity of 4.7 GW, which would be enough to power 4 million homes. Gus Jaspert, managing director, Marine, at The Crown Estate, said: "Our purpose is to create lasting and shared prosperity for the nation. Offshore wind enables us to do that as a driver of economic growth through jobs creation and supply chain development. Delivering the Capacity Increase Programme is an effective way to provide up to four million homes with secure, clean energy and further decrease the U.K.'s reliance on fossil fuels, often sourced internationally."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The investment incentive scheme called the Clean Industry Bonus originally had a budget of £200 million (US$263.5 million), but the government said that expressions of interest had "smashed expectations" with "hundreds of bids." The bonus amounts to £27 million (US$35.5 million) for each gigawatt (GW) of offshore wind power developed and is aimed at wind developers that invest in cleaner supply chains or in deprived regions, including coastal towns, traditional oil and gas communities and ex-industrial areas and ports. It bodes well for the next energy auction later in the year and marks a major improvement over the 2023 auction, which was overseen by the previous Conservative Party government, which failed to receive a single bid from offshore wind developers. For additional information, see September 26, 2023, article - U.K. Fails to Attract Any Offshore Wind Bidders.
The extra cash comes just weeks after U.K. Prime Minister Keir Starmer announced a £300 million (US$395 million) fund to attract global offshore wind investment for the U.K. For additional information, see May 6, 2025, article - U.K. Doubles Down on Offshore Wind. Offshore wind in the U.K. currently stands at slightly less than 15 gigawatts (GW), accounting for 17% of the country's electricity generation, while the government's target is to hit 43-50 GW by the end of the decade. Data from industry association RenewableUK, showed that no offshore windfarms were commissioned in the country in 2024 but that there are six projects totalling 6.3 GW undergoing "major offshore installation activities." Three of the projects (2.5 GW) are expected to reach full commissioning this year, while two more (2.5 GW) will begin offshore construction during the year.
U.K. Energy Secretary Ed Miliband said: "Industry has backed our clean energy superpower mission, and we are helping them to deliver it. This is the type of muscular industrial policy Britain needs to create jobs, drive growth and transform the fortunes of industrial towns and cities, delivering our Plan for Change."
The funding was welcomed by RenewableUK's Executive Director of Policy, Ana Musat: "This additional funding has the potential to help secure billions in private investment in new factories manufacturing components for the offshore wind industry across the U.K.. The Clean Industry Bonus is a good starting point as part of a wider industrial strategy which the government is due to unveil in full this summer, and which we hope will be complemented by new policies to support the expansion of U.K. ports. With larger ports, we could secure even more investment in offshore wind manufacturing and turbine assembly".
In another boost for the sector, the Crown Estate, which owns Britain's seabed, has greenlit changes in policy to allow for the rapid expansion of existing high-density offshore windfarms on current seabed leases. The Capacity Increase Programme is attempting to maximize the potential of existing offshore wind lease areas, making it faster and easier for developers to extend existing windfarms. Seven major expansion projects - Awel y Môr, Dudgeon Extension, Sheringham Shoal Extension, North Falls, Five Estuaries, Rampion 2 and Dogger Bank D - were highlighted, representing a total combined capacity of 4.7 GW, which would be enough to power 4 million homes. Gus Jaspert, managing director, Marine, at The Crown Estate, said: "Our purpose is to create lasting and shared prosperity for the nation. Offshore wind enables us to do that as a driver of economic growth through jobs creation and supply chain development. Delivering the Capacity Increase Programme is an effective way to provide up to four million homes with secure, clean energy and further decrease the U.K.'s reliance on fossil fuels, often sourced internationally."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
