Application Window Opens for UK Offshore Wind Clean Industry Bonus Scheme

February 17, 2025, by Adnan Memija

The UK government has opened the application window for the Clean Industry Bonus, a new scheme offering up to GBP 200 million (approximately EUR 240 million) in financial incentives to offshore wind developers who prioritise their investment in areas such as traditional oil and gas communities.

An initial bonus of GBP 27 million per gigawatt will be provided for offshore wind projects, with total funding reaching up to GBP 200 million if developers commit to 7-8 GW.

Funding will be allocated competitively with the results announced by the Energy Secretary in the summer. The application period will remain open for 43 business days.

According to the UK government, the Clean Industry Bonus will apply to all offshore wind projects bidding for funding through this year’s renewable energy auction, Allocation Round 7 (AR7) of the Contracts for Difference (CfD) scheme.

The government wants to see the developers prioritise their investment in industrial communities, such as traditional oil and gas areas.

The support also rewards developers who build more sustainable low-carbon factories, offshore wind blades, cables, and ports to reduce industrial emissions across the clean energy supply chain.

“The offshore wind industry already employs over 34,000 people in the UK, but there’s an opportunity to treble this number by the end of the decade if we grow the sector’s supply chain. Government initiatives like the Clean Industry Bonus, coupled with industry initiatives to support innovation and the upcoming Industrial Strategy, could drive hundreds of millions of pounds of private investment into new manufacturing,” said Dan McGrail, CEO of RenewableUK.

By encouraging developers to use less polluting suppliers, the bonus is said to help tackle the climate crisis while also addressing supply chain blockages in renewable technologies driven by Russia’s invasion of Ukraine.

New UK Initiative to Boost Local Supply Chains and Jobs in Offshore Wind

Business & Finance

According to the government, the bonus will help accelerate the drive for clean power – incentivising developers to build the infrastructure the country needs to end reliance on unstable fossil fuel markets and help keep energy bills down for good.

“We are backing our proud manufacturing, coastal and oil and gas communities with good jobs, skills and private sector investment – delivering on the government’s Plan for Change. This is our clean energy superpower mission in action, kickstarting growth, delivering energy security and transforming towns and cities as part of the transition – from the ports of Nigg and Leith to the manufacturing hubs of Blyth and Hull,” said Energy Secretary Ed Miliband.

The UK government recently announced measures to unlock up to 13 offshore wind projects, which could generate up to 16 GW of electricity.

The government plans to eliminate obstacles that have delayed or blocked the development of offshore wind projects by designating new Marine Protected Areas (MPAs) or extending existing MPAs to compensate for impacts to the seabed.