Millions of homes and businesses across Britain will be powered by a new supply of clean, cheap, homegrown energy as a record number of projects receive funding through the government’s most successful renewables auction to date.

In a key milestone towards delivering clean power by 2030, the latest auction round delivered 131 new green infrastructure projects. This makes it the biggest round ever with significant numbers for onshore wind, solar and tidal energy, which will power the equivalent of 11 million British homes.

The results are a marked improvement on the previous auction round in 2023, which saw zero offshore wind projects agreed.

The successful results come after the government last month moved quickly to increase the budget by 50% – a record funding uplift and 7 times bigger than the previous round’s pot.

As a result, offshore wind is back for business in UK waters – the backbone of the clean energy mission – with 9 contracts awarded including securing both what will be Europe’s largest and second largest windfarm projects, Hornsea 3 and Hornsea 4 off the Yorkshire coast.

A new rollout of low-carbon electricity is a key step for UK energy independence and energy security, helping protect families and businesses from spiking global fossil fuel prices.

Projects have been agreed at well below the upper limit on the price set for the auction – meaning the government has bought a record amount of clean power at much lower cost to consumers than the maximum price – providing value for money and cheap power.

Energy Secretary Ed Miliband said:

“We inherited a broken energy policy, including last year’s disastrous auction round which gave us no successful offshore wind projects.

“Today we have now achieved a record-setting round for enough renewable power for 11 million homes, essential to give energy security to families across the country. It is another significant step forward in our mission for clean power by 2030 – bringing Britain energy independence and lower bills for good.

“These results show that together, this government and the energy industry are securing investment into our country. This auction has produced a record number of solar projects bolstering our mission for a solar revolution, we have powered forward with onshore wind, secured the largest commercial floating offshore wind project in the world and got the offshore industry back on its feet.

“As we accelerate our plan for clean power by 2030 the government will work with the industry on how we can build on this success to ensure we can go even further and faster to deliver the power we need.”

On the back of this successful auction, the Energy Secretary is working with the industry to accelerate ways that the Contracts for Difference system and other energy policies can be expanded, so that more renewable energy, including offshore wind, can be connected to the grid, and quicker.

The 131 projects this year is the biggest auction to date – exceeding the 92 projects delivered in the last auction round.

This includes:

the largest offshore windfarm project in Europe - the Hornsea 3 project off the Yorkshire coast

the largest floating offshore wind project in the world to reach market, Green Volt, which is double the size of Europe’s total installed floating offshore wind capacity

6 new tidal projects, building on the UK’s world leading position, with just under half of the world’s operational tidal stream capacity being situated in UK waters

a combined 115 solar and onshore wind projects, which is more than the total number of projects delivered in the last auction round

Energy Minister Michael Shanks said that securing new wind turbines, solar panels and cutting-edge technologies such as tidal will boost growth, catalyse investment and support good jobs across Great Britain.

CEO of Low Carbon Contracts Company, Neil McDermott, commented:

“We are delighted with the outcome of Allocation Round 6 (AR6) which has awarded contracts to the largest number of projects ever.

“The results of AR6 increase our total renewable electricity CfD portfolio to 39GW and 372 contracts. CfDs support technologies including offshore and onshore wind, solar, as well as emerging technologies of floating wind, tidal and geothermal.

The success of this allocation round not only boosts our ability to decarbonise the economy and enhance energy security, but also unlocks exciting new opportunities for innovation and growth. We look forward to working closely with our new generators to deliver these projects, accelerating the delivery of net zero and a sustainable, low-carbon future.

The announcement is the latest step the government has taken to accelerate the mission for clean, secure power by 2030 -in 3 months the government has:

lifted the ban on onshore wind in England

launched Great British Energy in partnership with the Crown Estate, backed by £8.3 billion of new money, which is estimated to create up to 20-30GW of new offshore wind developments reaching seabed lease stage by 2030

approved 3 major solar farms powering the equivalent of around 400,000 new homes

launched its Clean Energy Mission Control centre, led by former Climate Change Committee Chief Executive Chris Stark, to accelerate the deployment of clean power

Funding is awarded through the government’s Contracts for Difference scheme which provides developers with subsidies for clean electricity projects across Britain with a built-in design to keep costs low for billpayers. 

The homes powered estimate reflects the equivalent number of homes that could be powered based on an estimate of the annual generation from the capacity procured in AR6. It is not possible to continuously power a home through intermittent renewables – this capacity will work alongside the rest of the electricity system to power homes and businesses.

Click here to access the full list of Contracts for Difference Allocation Round 6 results.