The UK will offer £800m to support the development of offshore wind in its upcoming AR6 budget, Bloomberg has reported.
Citing an unidentified source familiar with the matter, Bloomberg said that a total of £1bn will be set aside in the new budget, with the lion’s share going to support new offshore wind farms.
This represents a support package three times bigger than previous ones.
The UK’s last contracts for difference (CfD) auction failed to attract any bids from offshore wind developers over concerns that the prices offered, capped at £44, were too low.
With increased auction support, the UK will be able to offer higher prices to developers, which have been beset by rising costs and interest rates.
The upcoming allocation AR6 will offer a price ceiling of £73 per megwatt-hour after Energy Secretary Claire Coutinho (pictured) and her officials increased administrative strike prices last year.