UK Government Increases Funding for Offshore Wind Rewards Scheme

The UK government has announced a major funding boost for the Clean Industry Bonus, an initiative designed to reward offshore wind developers who invest in regions most in need of economic revitalization or who commit to building cleaner supply chains. The funding for the program has been increased from £200 million to £544 million following an unexpectedly high number of bids from industry.

The scheme is aimed at ensuring that the growth of the offshore wind sector benefits traditional oil and gas communities, ex-industrial areas, ports, and coastal towns. Developers will receive financial incentives under the condition that their investments prioritise these target regions or adopt low-carbon supply practices.

Energy Secretary Ed Miliband welcomed the overwhelming industry response: "Industry has backed our clean energy superpower mission, and we are helping them to deliver it. This is the type of muscular industrial policy our country needs to create jobs, drive growth and transform the fortunes of industrial towns and cities, delivering our Plan for Change."

Renewable energy industry associations in the UK have welcomed the funding boost. Claire Mack, Chief Executive at Scottish Renewables, praised the announcement as a sign of confidence in the sector. "This announcement makes clear that clean energy offers a strong return on investment for the country. It also demonstrates that Scotland’s offshore wind sector has the potential to deliver transformational benefits for our supply chains, skilled workforces and coastal communities," he said. "Now is the time to go further and faster to capture this unrivalled opportunity for green industrial growth."

Ana Musat, Executive Director of Policy at RenewableUK, is equally positive about the prospects of the scheme: "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 UK. Importantly for the country, these investments will create new jobs in coastal communities which need fresh opportunities".

The funding has been announced in advance of the UK government’s upcoming modern Industrial Strategy, which aims to accelerate growth across the UK’s priority sectors, including clean energy.

Applications for the Clean Industry Bonus have now closed, with successful projects set to be revealed following the final budget in May.

Source: gov.uk