UK government funding scheme set to boost offshore wind capacity

The UK has announced the Clean Industry Bonus (CIB), a new incentive scheme looking to increase investments in the offshore wind sector and push the country closer to its goal of decarbonising its energy system by 2030.

The scheme will provide an initial £27m ($33.5m) in funding for every gigawatt of capacity from offshore wind projects.

To qualify for the CIB, developers must commit at least £100m per gigawatt for fixed-bottom offshore wind farms and £50m per gigawatt for floating offshore wind farms.

If an application for the project exceeds the minimum investment standards it will be considered for the incentive. The CIB application window will close on April 14. Following the application window, the UK Department for Energy Security and Net Zero will assign a score to submitted CIB extra proposals.

The UK has already revealed plans to expand its current offshore wind capacity from 15GW to between 43GW and 50GW by 2030. The UK’s grid operator did say last year that the government’s target to source 95% of power from clean energy was a major but attainable challenge.

The country will hold more renewable auctions later this year, in which developers will bid for government-backed price guarantees on generated electricity. The new funding will be awarded through the contracts given in these auctions.