Energy Secretary Ed Miliband has vowed to “no longer gamble in the fossil fuel casino”, as the government launched an extra £200million bid to boost offshore wind.
Applications have opened for the Clean Industry Bonus, a way of further incentivising offshore wind developers. The money – up to a £200million over four years – is on the condition firms prioritise investment in areas that need it most, including traditional oil and gas communities. The Government claims it will give industrial heartlands and coastal areas a major economic boost.
The funding is in additional that what developers receive through the contracts for difference process, which guarantees a set price for electricity generated from renewable energy sources. Insiders say the Clean Industry Bonus will, at most, add £2 to the average annual household bill.
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Mr Miliband told the Mirror: “As an island, we are blessed with thousands of miles of windy coastline that is perfect for offshore wind and the clean, affordable and secure energy it generates. And if we roll it out more quickly, we can support even more skilled clean energy jobs, deliver energy security for the British people and help bring bills down for good.”
He added: “We’re getting on with the job to become a clean energy superpower – no longer gambling in the fossil fuel casino, taking back control of our energy supply. This Bonus could crowd in thousands of pounds into sustainable supply chains and local communities that need it most, unlocking growth, new job opportunities and reducing emissions to tackle the climate crisis.”
The Unite union, which represents thousands of workers in the oil and gas sector, gave the announcement a cautious welcome. However, it warned far more investment was needed to create the level of jobs required in offshore wind manufacturing.
It says that currently just 8% of UK wind turbines and equipment is produced domestically. Unite general secretary Sharon Graham said: “The Clean Energy Bonus scheme is a baby step in the right direction but the funding on offer so far is nowhere near enough to transform offshore wind manufacturing in the UK. If the government is going to get anywhere close to its targets on domestic wind manufacture and green jobs it will need to come up with much more ambitious levels of investment and make sure that it delivers.”
It comes as Chancellor Rachel Reeves last month included offshore wind as she vowed to reverse the fortunes of a country plunged into economic misery by the Tories. Ms Reeves said that barriers standing in the way of offshore wind projects in areas like East Anglia and Yorkshire would be removed. The Chancellor said these could bring in up to £30bn in homegrown clean power.
The National Energy Systems Operator – which runs the country’s power grid – said in a report in November that offshore wind is the “bedrock” of Britain’s target to reach its “clean energy” goal by 2030. Neso claimed to achieve it offshore turbines will need to generate more than half our power, with onshore wind and solar adding another 29%.
The report also predicts a “major network expansion”, with projects facing “multiple barriers”. They include a big increase in pylons – with more than 1,000 kilometres of power lines needed, set to spark anger from local communities. Labour’s manifesto pledged to work with the private sector “to double onshore wind, triple solar power, and quadruple offshore wind by 2030”.