Offshore wind and, for the first time, remote island wind providers will be able to bid for contracts to power up to four million homes from Cornwall to the Shetland Isles.

These clean electricity auctions will be held in 2019 and every two years from then on, signalling support worth up to £557 million for industry.

The minister said the auction will make the UK a beacon for inward investment.

Claire Perry added: “The UK renewables sector is thriving, with more offshore wind capacity here than anywhere else in the world and 50% of electricity coming from low-carbon sources last year in what was our greenest year ever.

“For the last decade the offshore wind industry has been a great British success story: increasing productivity, raising earnings and improving lives in communities across the UK; and today the sector gets the certainty it needs to build on this success through the next 10 years.”

Jenny Hogan, deputy chief executive at Scottish Renewables, added: “Today’s confirmation that next year’s auction will take place in May, and the schedule laid out for future rounds, provides much-needed clarity to Scotland’s renewables industry. Developers and supply chain companies across Scotland can now plan for projects over the next decade with more certainty.

“The CfD framework has already helped cut the cost of offshore wind by 50% compared to the previous auction round, and these new auctions will be open to a wide variety of less-established technologies at different stages of maturity.

“To help UK businesses reach their full potential and realise government’s industrial and clean growth ambitions it’s vital that all innovative technologies are able to benefit from this cost reduction pathway and to compete meaningfully in auctions using the regulatory tools BEIS has at its disposal.”

Gina Hanrahan, acting head of policy at WWF Scotland, added: “This support from the UK government will be welcome news to Scotland’s offshore wind industry. Last year’s auction saw the cost of new clean electricity tumble, and with more auctions the price of new energy will continue to fall. We have 25% of Europe’s offshore wind potential and this certainty will power us into the next decade. This is great news for our environment, a shot in the arm for our consumers and most of all a huge vote of confidence in our renewable industry.”