UK secures record supply of offshore wind projects

The UK has awarded contracts to build a record amount of offshore wind as part of its efforts to grow the country's clean electricity.

The projects span England, Scotland and Wales, including part of what could become the world's largest offshore wind farm, off the coast of Scotland in the North Sea.

But some analysts warn that despite the record haul of offshore wind, the government will still struggle to meet its 2030 "clean power" target.

The government argues that wind projects are cheaper than new gas power stations and will "bring down bills for good", but the Conservatives have accused its climate targets of raising energy prices.

The prices awarded by the government are fixed – in this auction, for 20 years. That certainty is designed to reassure developers that they will get a return on their upfront investment.

The projects can end up raising or lowering household bills, partly depending on how they compare to the price of electricity on the wholesale market. Their final impact on bills depends on a range of factors, including our future demand for electricity - which is expected to increase - and the price of gas.

Previous renewables projects funded by this scheme have often been given an effective subsidy. But analysts say they have brought some savings elsewhere, by displacing some of the most expensive gas power stations and reducing prices on the wholesale electricity market.

Today, wholesale market prices are usually driven by gas, but growing clean energy sources are expected to set the wholesale price more often in future.

In the Budget, the government announced changes which could cut energy bills by about £150, by moving some costs for older renewables onto general taxation and scrapping an energy efficiency scheme.

But at the same time, plans for grid upgrades - announced last year by the energy regulator Ofgem - will start adding to bills too.