With this groundbreaking wind power auction, we've proven the right-wing doubters wrong.
In the 18 months since I became energy secretary, the government has made a compelling argument: Britain needs to transition from fossil fuels to clean, homegrown power to stabilize energy bills. The invasion of Ukraine by Vladimir Putin highlighted Britain's vulnerability in the international fossil fuel market, where it's a price-taker, not a price-maker. Renewables and nuclear power offer Britain a chance to become energy independent, setting its own prices.
However, a well-funded right-wing network has relentlessly challenged this vision. When Keir Starmer announced our mission for clean power by 2030, they dismissed it as unfeasible or misguided. Today's historic offshore wind auction proves them wrong.
We've secured a record-breaking 8.4GW of offshore wind, enough to power over 12 million homes, the largest amount ever procured in any British or European auction. This achievement is particularly significant given the industry's global challenges. The billions of pounds in private investment unlocked by this auction will lay the foundation for a new era of energy sovereignty and abundance in our country.
Critics often spread misinformation about renewable energy costs. The key takeaway from our auction is that the average price secured for fixed offshore wind projects is £90.91 per megawatt-hour, significantly cheaper than building and operating a new gas plant.
The energy sector faces a critical issue: years of underinvestment in Britain's energy system coincide with a projected doubling of power demand by 2050. Those opposing renewable energy expansion must acknowledge that building new energy infrastructure is unavoidable. Offshore wind remains the most cost-effective option compared to new gas.
Today's auction includes fixed offshore projects across Great Britain, such as Dogger Bank South, Norfolk Vanguard, Berwick Bank, and Awel Y Môr, as well as pioneering floating offshore wind projects in Scotland and Wales, positioning Britain to lead in emerging technologies.
This auction marks a significant recovery for the industry, following the 2023 fiasco where the Tories failed to deliver any offshore wind projects. These results put us on track to achieve our 2030 clean power goals and beyond.
Simultaneously, we're cutting energy bills in the short term by removing an average of £150 from annual energy bills from April and expanding the warm home discount to benefit six million of the poorest families with an additional £150 off their bills.
This record-breaking result is a significant step forward for our industrial strategy, leveraging clean energy to meet the British people's demand for good jobs in the future. These projects will create thousands of jobs for engineers, technicians, and factory workers, unlocking £22 billion in investment in Britain, with the goal of supporting 100,000 offshore wind jobs by the end of the decade.
This achievement represents a new dividing line in British politics. Reform UK and the Conservatives advocate for a war on clean energy, keeping Britain dependent on fossil fuels, jeopardizing the clean energy jobs we're creating, and betraying future generations by abandoning efforts to combat the climate crisis.
Labour, on the other hand, stands firm against the naysayers, confident that clean power is the right choice for lower bills, energy security, good jobs, and climate action. Today, we've proven the doubters wrong, and we'll continue to do so.
