The UK government has launched a new investment scheme to boost clean energy manufacturing in the country. The scheme is called Clean Industry Bonus (CIB) and will offer financial support to offshore wind developers that prioritise investment in the most needed areas. The initiative will incentivise developers who construct more sustainable and low-carbon factories. It will also support the production of offshore wind blades, cables, and ports, while helping reduce industrial emissions across the clean energy supply chain.
The funding will come through the government’s Contract for Difference mechanism. Furthermore, this bonus will initially provide €27 million per GW to successful offshore wind project bidders. According to the scheme, developers are eligible for funding of €200 million if they commit to 7-8 GW of offshore wind projects. Additionally, funding will be allocated competitively, and the results will be announced by the Energy Secretary in the summer of 2025.
Earlier in April 2024, the UK Government approved the extension of the Dudgeon offshore wind project, which is a collaboration between Masdar, Equinor, and China Resources Power. On April 17, 2024, the UK Secretary of State for the Department of Energy Security and Net Zero, granted the development consent for Dudgeon Extension.
REGlobal’s Views: The UK was an early mover in the offshore wind space and is now a top offshore wind market with a significant portfolio of projects online and under construction. However, the country lags in manufacturing of components for supporting this development. This scheme will help the country to boost domestic manufacturing of offshore wind equipment and ensure security of supply chains.
