The UK government has raised the budget for its newly launched Clean Industry Bonus (CIB) scheme to £544 million, more than doubling the initial £200 million allocation, in a move aimed at promoting more sustainable and regionally inclusive offshore wind development.
The bonus, part of the government’s Contracts for Difference (CfD) programme, will provide payments of £20.1 million per gigawatt of offshore wind capacity for developers who commit to enhancing sustainability across their supply chains. The increase reflects a higher-than-expected level of industry interest, with developers submitting between 7GW and 8GW of capacity prior to the April 14 deadline.
This marks the first year the CIB applies to both fixed-bottom and floating offshore wind projects, forming a prerequisite for participation in Allocation Round 7 of the CfD auction process. The auction dates have not yet been announced.
Assessment criteria for the bonus include commitments to invest in new manufacturing facilities in economically disadvantaged regions of the UK and selecting suppliers with sustainable production practices.
The Department for Energy Security and Net Zero said the enhanced budget is intended to support the UK’s industrial base while accelerating the shift to cleaner energy sources. The CIB is expected to incentivise developers to strengthen local supply chains and boost job creation in emerging green sectors.
