Author: PPD Team Date: 13/02/2025
The UK has launched the Clean Industry Bonus (CIB), a new incentive scheme aimed at supporting offshore wind projects and advancing the country’s goal of decarbonising its energy system by 2030.
Set out in the Contracts for Difference (Allocation) Regulations 2014 and the Electricity Market Reform (General) Regulations 2014, the scheme will provide an initial £27 million ($33.5 million) in funding for each gigawatt (GW) of capacity awarded to successful offshore wind project bidders, as reported by Reuters.
The CIB is designed to encourage investment in sustainable supply chains by offering additional revenue support through Contracts for Difference (CfD) to both fixed and floating offshore wind applicants.
To qualify for the CIB, developers must meet minimum investment standards, including a commitment of at least £100 million per GW for fixed-bottom offshore wind farms and £50 million per GW for floating offshore wind farms. Any application exceeding these minimum standards will be considered a CIB extra proposal. The application window for the CIB will close on April 14, 2025, and the Department for Energy Security and Net Zero (DESNZ) will assign scores to submitted proposals after this date.
Offshore wind is a key component of the UK’s clean energy strategy, with plans to increase its capacity from 15GW to between 43GW and 50GW by 2030. In 2024, the UK’s grid operator highlighted the government’s target to source 95% of electricity from clean energy as an ambitious but achievable goal.
Britain is also planning additional renewable energy auctions in 2025, where developers will compete for government-backed price guarantees for the electricity they generate. The new funding will be allocated through the contracts awarded in these auctions.