Energy secretary Ed Miliband revealed that this year’s renewable energy auction is being increased by £500 million to over £1.5 billion - a record budget - helping build new green infrastructure as part of the mission to deliver clean power by 2030.  

Funding will accelerate the delivery of clean, cheap, low-carbon electricity to families and businesses, generated by renewable energy technologies such as wind turbines and solar panels.

The uplift comes on the day of the first meeting of the Clean Energy Mission Board – chaired by the Energy Secretary and attended by Ministers from across Whitehall – as part of plans for a mission-driven government. The board will meet to ensure a relentless focus on delivering the mission of clean power by 2030 and accelerating towards net zero.

Energy secretary Ed Miliband 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.”

The Contracts for Difference scheme works by developers bidding for contracts to help deliver renewable energy projects, with the scheme providing a guaranteed price for the clean electricity they generate. This gives industry greater certainty to invest, knowing that when electricity prices fluctuate, they will always get a set price for their projects.

The scheme’s design awards contracts through a series of competitive auctions, where the lowest price bids are successful – providing value for money and cheap power for consumers.

Following the increase, the Allocation Round 6 (AR6) budget includes:

• £1.1bn for offshore wind, an uplift of £300m
• £185m for established technologies such as onshore wind and solar, an uplift of £65m
• £270m for emerging technologies such as floating offshore wind and tidal, an uplift of £165m

The increase means the AR6 budget is seven times higher than that of Allocation Round 5 (AR5).

Claire Mack, chief executive of Scottish Renewables, said: “Heightened ambition for 2030 must be matched by bold action and the welcome increase to the Allocation Round 6 budget sends a positive signal to industry that the UK Government is serious about achieving its clean power mission.

“To maintain our globally competitive advantage, empower our supply chains and enrich our communities, it is essential that we enable deployment at pace across all clean energy technologies through the Contracts for Difference scheme.

“Unleashing the full potential of Scotland’s renewable energy pipeline, in particular floating and fixed offshore wind, will require building on Allocation Round 6 to maximise deployment through future allocation rounds.

“This will drive economic growth, deliver energy security and achieve the UK Government’s clean power mission.”

Keith Anderson, ScottishPower CEO, said: “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.

“This 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.”