The Government has now announced a £1.08bn initial budget to support offshore wind, with the aim of encouraging investment.

Developers will be offered the incentive for the contract budget for Allocation Round Seven (AR7) set at £900m for offshore wind projects and £180m for floating offshore wind farms.

Energy Minister Michael Shanks stated that the current auction is part of the effort to reduce dependence on volatile global gas prices, secure energy supply, and ultimately lower energy bills for consumers by procuring clean power at the right price.

RenewableUK's executive director of policy and engagement Ana Musat's commented on the announcement: “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 £53bn in private investment in the UK economy.”

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