The government of the UK is increasing its budget to £1.5 billion this year for renewable energy projects. This extra money is aimed at developing offshore wind power. While many applaud the move, some experts express concerns that the new projects may not make a difference in meeting the goals set for 2030.

The UK government is going to back green energy by exerting a big hike in the budget for this year’s renewable energy auction. Energy Secretary Ed Miliband has confirmed that the increased budget would be £1.5 billion, which is £500m more as compared to last year, to supercharge offshore wind power—a vital component of Labour’s plans to quadruple its capacity by 2030.

A boost to the budget this year follows months of pressure on the government by the renewable energy industry for more support. The government holds an annual auction to encourage firms to develop projects that can generate green energy. The firms that bid in the auction gain a guaranteed price from the government for the electricity they produce, which makes it easier to invest in renewable energy.

Developers did not bid for any offshore wind contracts last year because the strike price was too low to allow the projects to be viable. The then Conservative government tried to fix that by raising the strike price for offshore wind projects in November.

Miliband announced this higher budget to help the UK regain its top spot in green technology on the world stage. Many people working within the renewables sector view this rise as positive, attracting more investment in green projects.

Not everyone, however, is convinced. Shadow Energy Secretary Claire Coutinho said the government’s plan was a criticized plan. While Labour is increasing investment in renewables, it is cutting back on gas—which is required as a backup when sources like wind and solar aren’t up to scratch, she argued. She highlighted that Miliband’s plan did not explain what is going to replace gas nor how the transition will be managed.

Esin Serin, a policy expert at the Grantham Research Institute on Climate Change and the Environment, also commented on the increase in the budget. She said that the extra funding was welcome but warned this year’s auction could only return 10 gigawatts where up to 40 GW are needed by 2030. This leaves much for future auctions if the government is going to achieve its targets.

Since Labour came to power, it has announced a few measures to support renewable energy: removal of restrictions on onshore wind projects, and a partnership between the government and the Crown Estate to develop new offshore wind farms.

According to Dr. Rahmat Poudineh of the Oxford Institute for Energy Studies, the bigger budget would prompt more bids from developers, but he warned there are still challenges to be overcome in rising costs and delays in connecting projects to the electricity grid.

The government wants to develop renewable energies rapidly to reduce GHG emissions related to fossil fuels. They want, also, to reduce their dependence on energy imports often costly and unstable—sometimes even out of control—as it was in 2022 with the record-high gas prices in the wake of the Russian invasion of Ukraine.

There is the possibility that should guaranteed prices for renewable energy end up being much higher than the market price in 2030, taxpayers might lose out. Jess Ralston, head of energy at the Energy and Climate Intelligence Unit, said despite this concern, he thought the scheme would probably come out in the wash financially. She added that – should another gas crisis hit in the near future – this auction would help to retain wind energy, which could save households £30-£40 per year in energy bills.

Basically, the UK government is heavily investing in green energy by increasing the budget available to renewable energy projects. While this move is regarded as highly positive, there is a lurking fear that the new projects to be initiated will miss the ambitious targets set for 2030. The government, therefore, while embarking on these green energy plans, must also address these challenges if it is to succeed in an initiative of this nature.