Highlights
- 8.4 gigawatts of offshore wind capacity awarded in Britain's largest-ever renewable energy auction.
- Contract prices 40 per cent lower than building new gas plants, supporting 2030 clean power targets.
- Auction marks crucial turning point for sector after two challenging years of rising costs.
Britain has secured a record-breaking 8.4 gigawatts of offshore wind capacity in its most competitive renewable energy auction to date, delivering enough clean electricity to power more than 12 m homes by 2030.
The government awarded subsidy contracts to 12 new offshore projects after increasing funding available to developers, with energy companies competing for guaranteed prices on each unit of clean electricity generated. Contract prices ranged between £89.49 and £91.20 per megawatt-hour in 2024 prices.
Energy secretary Ed Miliband described the results as "historic," stating "We've secured a record-breaking 8.4GW of offshore wind, enough to power the equivalent of over 12m homes. This is the largest amount of offshore wind procured in any auction ever in Britain or indeed Europe."
Miliband emphasised energy security benefits, told The Guardian, "With these results, we are taking back control of our energy sovereignty.
It's a historic win for those who want Britain to stand on our own two feet, controlling our own energy rather than depending on markets controlled by petrostates and dictators."
Costs and benefits
The energy secretary highlighted that prices secured were "40 per cent lower than the alternative cost of building and operating a new gas plant," adding the auction would "create thousands of jobs throughout Britain."
While winning bids exceed current wholesale electricity prices of approximately £81 per megawatt-hour, experts suggest expanding wind power capacity could ultimately reduce consumer bills by limiting reliance on expensive gas plants and lowering overall market prices.
The auction's success proves critical for achieving the government's election pledge to double onshore wind, triple solar power, and quadruple offshore wind by 2030, targeting a virtually zero-carbon electricity system.
Alon Carmel, offshore wind expert at PA Consulting, called the auction "a litmus test for the resilience of UK offshore wind after two challenging years."
The sector has faced rising costs from supply chain inflation, higher financing interest rates, and increasingly hostile conditions in US markets under the Trump administration.
The results signal renewed momentum towards 2030 targets following a difficult period for the offshore wind industry.
