Home / Environment / UK Unveils £1.08 Billion Annual Budget for Offshore Wind Farms
UK Unveils £1.08 Billion Annual Budget for Offshore Wind Farms
27 Oct
Summary
- £1.08 billion annual budget for new offshore wind farms
- Competitive auction process to secure lowest fixed electricity prices
- Funding to boost clean power, energy security, and lower bills
On October 27, 2025, the UK government unveiled a £1.08 billion annual budget to support the development of new offshore wind farms. This funding will be allocated through a competitive auction process, where offshore wind developers can submit sealed bids for their desired fixed electricity price between November 11 and 17.
The government's goal is to spur investment in clean power capacity as part of its wider efforts to decarbonize the UK's electricity grid, reduce household bills, and boost economic growth. The budget includes £900 million for traditional offshore wind projects and an additional £180 million for floating offshore wind projects to be delivered from 2028.
Energy Minister Michael Shanks stated that the auction will allow the government to "buy the right amount of clean power at the right price on behalf of the British people, so we can take back control of our energy." The funding will come from energy bills rather than general taxation, but customers will also see a return when overall electricity prices rise above the guaranteed fixed price.
Experts have welcomed the budget, noting that it is "highly unlikely" to be added to bills and that it will help provide job security for those leaving the fossil fuel industry. However, they have also emphasized the need for the government to "up their game" in future renewables auctions to meet its own clean power system promises.
