The UK government has confirmed it will increase the AR6 Contracts for Difference budget by more than 50%.
The overall auction purse has been boosted to £1.56bn, up £500m on the figure initially set earlier this year.
It comes ahead of next week’s sealed bidding window where developers will submit proposals for the 15-year contracts.
A total of £1.1bn will now be available to offshore wind in Pot 3, up from the £800m previously allocated in March by the former Conservative government.
In Pot 1, where onshore wind and solar technologies will compete, the budget has been increased by £65m to a £185m fund, while Pot 2 for emerging technologies such as floating wind and tidal has received a £165m bump to £270m.
Energy Secretary Ed Miliband (pictured) said: “Last year’s auction round was a catastrophe, with zero offshore wind secured, and delaying our move away from expensive fossil fuels to energy independence.
“Instead, we are backing industry to build in Britain, with this year’s auction getting its biggest budget yet.
“This will restore the UK as a global leader for green technologies and deliver the infrastructure we need to boost our energy independence, protect billpayers, and become a clean energy superpower.”
Industry leaders have been urging the new Labour government to boost the funding available in AR6 to ensure as much of the 10GW of eligible offshore wind capacity is able to come through the auction as possible.
ScottishPower chief executive Keith Anderson said today’s move “will unlock billions in private investment, support thousands of jobs, strengthen our energy security and produce the green and affordable power needed for decades to come”.
“The auction needed a reset after last year and we welcome the increased budget, which is an important investment signal to the industry to make Britain a clean energy superpower, secure more low-cost offshore wind and spur economic growth,” he added.
The Department of Energy Security and Net Zero said increasing the offshore wind purse sends “a strong signal to industry to invest in UK waters”, while the overall uplift will “accelerate the delivery of clean, cheap, low-carbon electricity”.
Energy Minister Michael Shanks added: “Increasing the budget by more than 50% will boost industry confidence to back clean energy, attracting cutting edge clean technologies to Britain as we accelerate to a decarbonised power sector by 2030.”
Responding to the news, Energy UK chief executive Emma Pinchbeck said the funding increase will deliver “a real boost for our clean energy ambitions”.
“Offshore wind is critical to hitting the government’s 2030 target and we know that the vast majority of this capacity must be delivered through this auction round and next year’s,” she added.
“That remains a huge challenge but this is certainly a big step in the right direction and another welcome demonstration of the government’s ambitions.”