‘Clean bonus’ will incentivise investment in UK offshore wind industry

The aim is to support the UK’s supply chain, providing jobs in areas that traditionally have been home to the energy industry and thermal power generation.

Speaking at COP29 in Azerbaijan, Prime Minister Keir Starmer said he wants the UK to lead the world in the pro-growth clean energy transition.

He said offshore wind developers will be incentivised to invest in the UK’s historic industrial heartlands, coastal areas and oil and gas communities, boosting green jobs and supporting sustainable factories.  

The Clean Industry Bonus (CIB) will come with a provisional £27M (US$34M) per GW of offshore wind projects. That means if between 7 GW and 8 GW of offshore wind apply, the budget could go up to £200M.

The government says the bonus “will create the conditions for cleaner energy industries to thrive in the UK and elsewhere, while rewarding firms for investing in less polluting suppliers.

“It will help to crowd in private investment in communities in Scotland, Wales, the northeast and northwest to build more sustainable offshore wind blades, cables and ports – reducing industrial emissions and helping support the rollout of clean, secure, cheap power.”

Responding to the Prime Minister’s announcement, RenewableUK chief executive Dan McGrail said, “The Prime Minister is right in recognising that, with the right incentives in place to make the UK competitive with other countries, we have the potential to secure hundreds of millions of pounds in new offshore wind manufacturing investment.

“The offshore wind industry already employs around 32,000 people in the UK, mostly in coastal towns like Hull, Grimsby and Lowestoft, but we could see this figure increase substantially in the coming years.

“Earlier this year, the offshore wind sector published an Industrial Growth Plan which estimated the UK could treble the size of the sector’s supply chain over the next decade. 

“The Clean Industries Bonus should be considered a key part of an industrial strategy for offshore wind, which the government should continue to develop alongside its wider industrial strategy this spring, putting in place other core components like a programme of grants to match to those being offered by our European competitors.

“It’s the right time to introduce the Clean Industry Bonus, as offshore wind supply chain companies are actively considering new investments to service the rapidly expanding global market. Growing our industrial capability now will put the UK in a strong position to sell our high-value goods and services abroad in the coming years.”

Prospect senior deputy general secretary Sue Ferns said, “If properly implemented and resourced, the Clean Industry Bonus can form part of an integrated strategy to deliver our clean energy goals.

“The primary aim of the policy must be to drive growth in domestic supply chains, delivering high-quality, unionised jobs to the communities that most need them.

“The transition to a low carbon economy is a huge opportunity for the UK, but only if we ensure that investment is directed to support British industry and encourage a just transition of skilled labour into the clean energy sector.”