Budget for new offshore wind projects should be adjusted to maximise amount of vital clean energy capacity UK can secure

27 October 2025 - RenewableUK press release

Commenting on today’s announcement by the Department for Energy Security and Net Zero (DESNZ) of the budget for Allocation Round 7 to support new offshore wind projects, RenewableUK's Executive Director of Policy and Engagement Ana Musat said: 

"The budget announced today will not maximise investment in new offshore wind farms. We have a record amount of offshore wind capacity eligible for this auction - more than 20 gigawatts - and the current budget would only procure about a quarter of that. Given the amount of competition in this year’s auction, we expect to see competitively-priced bids, so the Government should adjust the budget to maximise procurement, which could attract up to £53 billion in private investment in the UK economy.

 “It’s important that this allocation round supports further development of floating wind technology. Early investment in these demonstration-scale projects will help build up supply chains and bring down costs to enable us to scale up in the next decade.

"An ambitious pipeline of renewable energy projects is crucial for triggering large scale private investment in offshore wind supply chains and manufacturing capabilities, creating jobs in communities right across the UK, and we are delighted that today the Offshore Wind Growth Partnership has today launched the first ever round of a new Industrial Growth Fund, offering grants of up to £25 million for each company wanting to enter our supply chain or to expand its manufacturing facilities. Funding for this programme comes from developer members of the Offshore Wind Industry Council.

“Every gigawatt of new offshore wind capacity we install boosts our economy by £2-3 billion, and with the right level of support we can more than double the number of offshore wind jobs from 40,000 now to 95,000 by 2030. This would strengthen our energy security, drive economic growth and reduce our exposure to volatile gas prices”. 

It is important to note that the budget does not represent an amount of money paid to successful bidders in this auction, but acts as a cap to limit the number of projects which can win contracts. This limit is set to retain competitive tension in the auction to ensure that bids are as cost-competitive as possible. 

 (ends) 

Notes

For further information, contact

Robert Norris, Head of Communications
07969 229 913 Robert.Norris@RenewableUK.com

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