Government boosts renewable energy auction budget to £1.5bn

The government is set to significantly raise the budget for this year's renewable energy auction, following calls from industry for more support. Energy Secretary Ed Miliband announced on Wednesday that the budget would be increased to £1.5bn, up by £500m from last year. The majority of the funding will be available to develop offshore wind power, which the Labour government says it wants to quadruple by 2030. The government holds an auction each year to encourage companies to bid to develop renewable energy projects to supply the UK grid with electricity. In November, the former Conservative government significantly increased the strike price for offshore wind projects in response.