The UK Announces Clean Industry Bonus to Boost Offshore Wind Investments
The UK has unveiled the Clean Industry Bonus (CIB), a new incentive scheme aimed at driving investments in the offshore wind sector and advancing the country’s efforts to decarbonize its energy system by 2030.
Under the scheme, developers stand to receive an initial £27m ($33.5m) in funding for every gigawatt of capacity from offshore wind projects.
To be eligible for the CIB, developers must commit a minimum of £100m per gigawatt for fixed-bottom offshore wind farms and £50m per gigawatt for floating offshore wind farms.
Projects that surpass the minimum investment requirements will be considered for the incentive. The application window for the CIB is set to close on April 14, after which the UK Department for Energy Security and Net Zero will evaluate and score the submitted proposals.
The UK has already outlined plans to expand its current offshore wind capacity from 15GW to between 43GW and 50GW by 2030. While a significant target, the government aims to source 95% of its power from clean energy sources, a goal deemed challenging yet achievable by the country’s grid operator.
Further renewable auctions are scheduled later this year, where developers will compete for government-backed price guarantees on the electricity they generate. The additional funding from the CIB will be allocated through contracts awarded in these auctions.