Britain has increased funding for its offshore wind investment scheme to £544 million ($721.78 million), more than doubling the original budget, the Department for Energy Security and Net Zero said on Friday. The move follows higher than expected interest in the programme, known as the Clean Industry Bonus.
The incentive aims to improve the financial feasibility of offshore wind projects as the UK targets a rise in capacity from approximately 15 gigawatts (GW) today to between 43 and 50 GW by 2030. Offshore wind is central to Britain’s long-term clean energy plans.
The expanded funding comes in the same week that Danish energy firm Ørsted cancelled its Hornsea 4 project, one of the UK’s largest planned offshore wind farms. The company cited escalating construction costs, saying the project was no longer economically viable.
Under the Clean Industry Bonus, developers will receive £27 million per GW of capacity, with the scheme favouring investments in economically disadvantaged areas or cleaner domestic supply chains. This includes former industrial regions, oil and gas communities, and coastal towns.
“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,” said Ana Musat, Executive Director of Policy at RenewableUK.
The scheme will feed into Britain’s next renewable energy subsidy auction later this year, where qualifying offshore wind projects can bid for support.
