The UK’s ambitious wind power goals won’t be achieved unless the government takes action this month to raise offshore subsidies, according to energy think tank Ember.
The country’s current budget would only support about 3 to 5 gigawatts of additional capacity at an upcoming auction, but the UK needs 20 gigawatts across the next two to remain on track for its 2030 goals, Ember said in a report.
Britain’s new government wants to install even more offshore wind capacity by 2030 than its predecessor, aiming for 55 gigawatts.
Ember’s report is based on the current goal of 50 gigawatts, signaling that greater support will be necessary to support the expansion.
Meanwhile, increased costs for offshore wind developers have caused a slowdown in the sector, with the previous UK auction attracting no new capacity.
The budget was increased to a record £800 million ($1 billion) earlier this year, but the industry still says it’s not enough.
Increasing funding to £1 billion would put targets “in view,” Ember said, though the deadline to change the budget is August 1.
“A higher budget for this summer’s auction would immediately secure a real boost to the UK’s offshore industry, a straightforward win for a new government within three weeks of power,” said Ember analyst Frankie Mayo.
Earlier this year, before coming to power, Britain’s Prime Minister Keir Starmer rolled back a pledge to spend £28 billion a year on the UK’s green transition in a bid to neutralize Conservative attacks over taxes. His Labour party wants to fund many of its plans with a windfall tax on oil and gas companies.
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