Key industrial and coastal areas will secure a significant economic boost as the government prioritises renewable energy businesses investing in industrial communities, supporting good jobs through the government’s Plan for Change. The application window has commenced for the Clean Industry Bonus, providing financial support for offshore wind developers, ensuring they prioritise investment in areas that require it the most, such as oil and gas communities, delivering highly skilled jobs like engineers or electricians. The support also favours developers who construct more sustainable low-carbon facilities, offshore wind blades, cables and ports to lower industrial emissions within the clean energy supply chain. 

Encouragement for developers to use less polluting suppliers will help tackle the climate challenge while addressing supply chain issues in renewable technologies associated with the conflict between Russia and Ukraine, supporting industry on the movement towards clean, secure, domestic energy that the nation can control. 
The UK generated more offshore wind than any other nation in Europe, making it critical for plans to achieve a clean energy system by 2030 and become a clean energy super hub. This bonus will accelerate the movement towards clean energy - incentivising developers to build the infrastructure the nation requires to eliminate reliance on unstable fossil fuel markets, ensuring energy bills decrease.

Since the middle of last year, the UK Government has witnessed £34.8 billion of private investment into the domestic clean energy industries. Near the end of last year, the Government introduced its carbon capture and storage industry, supporting 4,000 jobs in the North West and Teesside. ScottishPower awarded a £1 billion turbine contract for the East Anglia 2 offshore wind farm to Siemens Gamesa, including blade production at their Hull blade factory, which employs over 1,300 people in Humberside. 

Energy Secretary Ed Milliband stated that they support our long-standing manufacturing, coastal and oil and gas communities with secure jobs, strong skills and private sector investment. Milliband explains that this clean energy superpower priority accelerates growth, generating energy security and transforming areas as part of the transition. 

Steve Foxley, CEO of the Offshore Renewable Energy (ORE) Catapult, explains that this development is a critical signal from the government to the industry of their desire to expand the offshore wind industry in a manner that favours our climate and economy, supports considerable job growth and strengthening domestic energy security. Combined with innovating future technologies and meeting the goals of the Industrial Growth Plan for offshore wind, it will boost confidence in our potential to secure the clean energy investments required for the future.

Dan McGrail, the CEO of RenewableUK, explains that the offshore wind industry already employs around 34,000 people nationwide, but there’s an opportunity to expand this number over the next few years if we increase the supply chain. Government plans like the Clean Energy Bonus and other industry measures that support innovation and generate millions of private investment into new manufacturing. While prioritising investment in manufacturing new turbine structures, blades and cables, we must also recognise the thousands of construction and maintenance jobs involved with wind projects. 

Dhara Vyas, the CEO of Energy UK, explains that offshore wind is forecasted to become the core of a decarbonised power system. To deliver an industry capable of withstanding supply chain challenges, we require a framework that promotes sustainable deployment, while enabling investment in the key industrial areas.
The Clean Industry Bonus will enable economic growth, deliver new jobs and secure the UK’s position as a leader in offshore wind. 
The Clean Industry Bonus will also play a vital role in strengthening the Contracts for Difference system. Clarity will be essential in delivering Allocation Round 7, which could be one of the most important auctions for achieving our clean power goals.

The bonus will include a starting £27 million per GW of offshore wind projects, meaning if developers commit 7-8 GW of offshore wind, up to £200 million of funding could be available.

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