Consumers could face further increases in the price of energy because the government is stifling the development of cheaper offshore wind power, a new analysis claims.
A large proportion of farms that could be built in the future will miss out on financial support in this year’s funding round, the Energy and Climate Intelligence Unit (ECIU) said, because the budget set by ministers is insufficient.
The budget for new offshore wind farms in this year’s contracts for difference auction, which will open to bids this week, has been set at a record £800 million. The Treasury’s “unrealistic” power price predictions for the coming years have in effect diminished the pot of money available to incentivise new projects, the ECIU said. This could “stifle” the
