The latest renewable energy auction in the UK has successfully secured enough new clean electricity projects to power 11 million homes. This achievement comes after the Labour government made a record £1.5 billion available to suppliers, significantly increasing funding compared to previous years.

The auction, the sixth of its kind, will support 131 new projects, including wind farms, solar farms, and tidal power initiatives. The government’s decision to increase the auction’s funding by 50% compared to what was previously offered by Conservative ministers was aimed at revitalizing investment in the UK’s clean energy industry. This move was particularly crucial after the previous government failed to award any new offshore wind contracts last year.

Despite the auction’s success, it only secured about half of the offshore wind capacity needed each year to meet the government’s green energy targets for 2030. Nearly two-thirds of the eligible offshore wind capacity failed to secure contracts, highlighting the competitiveness of the auction. For example, RWE’s UK business missed out on an offshore wind contract, with their CEO Tom Glover noting the need for the government to work harder in future auctions to meet its goal of quadrupling offshore wind capacity to 60GW by 2030.

The bulk of the funding was awarded to 5GW of offshore wind capacity, enough to generate clean electricity for over 3 million homes by the end of the decade. These projects were awarded contracts at a price between £75 and £82 per megawatt-hour, which is below the current market price for electricity and significantly lower than the cost of new nuclear power.

Additionally, the auction saw contracts awarded to around 90 new solar farms with a total capacity of 3.3GW, and 22 new onshore wind farms with a total capacity of nearly 1GW. Tidal power developers also secured contracts for six new projects, and the world’s largest planned floating offshore wind farm received a contract as well.

Energy Secretary Ed Miliband praised the auction as a record-setting achievement that moves the UK closer to its goal of achieving clean power by 2030. He emphasized that the auction's success shows that the country is on the right path to energy independence and lower bills for consumers. However, industry leaders like Dan McGrail, CEO of RenewableUK, stressed the need for continued progress and collaboration between the government and the renewable energy sector to ensure that the UK meets its clean energy targets.