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Yahoo
a day ago
- Business
- Yahoo
German wind auction flop sparks fears for Miliband's UK sale
A German offshore wind auction has received no bids after developers baulked at the low subsidies, just as Ed Miliband prepares to offer lucrative taxpayer support in Britain to avoid a similar flop. The Federal Network Agency offered up plots in two areas of the North Sea, which authorities were hoping could host wind farms that would have opened in the early 2030s. But the competition was snubbed by developers, with an industry association claiming the result was a 'clear message' that Germany's government needed to stump up more cash. Stefan Thimm, of the German Offshore Wind Energy Association, said: 'The German offshore wind market is currently not attractive to investors. The federal government is thus missing the opportunity for significant value creation and employment in Germany and Europe.' The failed auction came as Britain quietly launched its own similar auction on Thursday, with Mr Miliband, the Energy Secretary, expected to offer bumper subsidies to attract enough wind farm capacity to meet his clean power targets. The German results underscored the difficulties being experienced by Europe's offshore wind industry, which has been buffeted by rising costs and interest rates in recent years. That has squeezed the profitability of projects, making them more reliant on top-ups from government subsidies. However, the precise level of state support has proved a sticking point. Britain's own wind auction received no bids in 2023 after ministers initially refused to raise the subsidies on offer. They later backed down, with Mr Miliband overseeing a record £3bn of contract for difference (CfD) awards last year. He has since reformed CfDs, which guarantee wind farm revenues, so that they last 20 years instead of 15. The costs are added to the bills of consumers, who will end up paying them until the 2040s. This year's auction round in the UK, known as AR7 to the industry, is viewed as critical because it is the last time the Government can realistically attract new capacity in time for the 2030 clean power targets, given the time it takes to construct a wind farm. Analysts at Bernstein said the auction held 'existential' importance for Mr Miliband's flagship policy and estimated that winning bids could pay at least £85 ($114) a megawatt-hour, up from £82 last year. That is higher than wholesale power prices last year, which averaged £74 per megawatt-hour, and would mark the second time in a year that the price for offshore wind has risen. Andy Mayer, an energy expert at the Institute of Economic Affairs, said he expected the British auction to 'go the other way' to its German equivalent. He said: 'The straightforward reality for the wind market at the moment is that costs are rising – they are as affected by rising inflation as any other industry. 'So the myth that the price of renewables would always get cheaper, which existed between 2015 and 2022, has been blown apart. 'But in Britain's auction, I expect developers will fill their boots, because the politicians have decided that we must roll out a certain amount of wind power per year at all costs.' Under Mr Miliband's clean power action plan, the Government is targeting 43 to 50 gigawatts of offshore wind capacity compared to about 15 gigawatts today. However, the plans are opposed by Reform UK – led by Nigel Farage – which has threatened to scrap any contracts awarded to wind farm developers and slash net zero-related expenditure across Whitehall. Richard Tice, the party's energy spokesman, wrote to energy companies last month to warn them of the Reform plan. He said: 'You should treat any long-term revenue streams as politically and commercially unsafe.' Mr Mayer said reneging on the contracts would be hugely risky and might cause a collapse of business confidence in Britain. However, he suggested the party may avoid the need to do this by simply introducing a windfall tax to claw back the revenues, something Mr Tice has also threatened in the past. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Leader Live
21-07-2025
- Business
- Leader Live
Miliband says Farage trying to ‘airbrush history' over UK's fossil fuel reliance
The Energy Secretary criticised the Reform UK leader's claim that it is 'mindless' for the UK to pursue climate action given its relatively small share of global emissions. Speaking to MPs on the Energy Security and Net Zero Committee on Monday, Mr Miliband said: 'Nigel Farage wants to airbrush history – he wants people to forget the fact it was our exposure to fossil fuels that led to the worst cost-of-living crisis in generations.' 'Family finances wrecked, business finances wrecked, public finances wrecked – and we're still paying the price. 'There is only one answer to that, which is homegrown energy that we control – and the security that you get from that homegrown clean energy is now essential for our energy security and national security. 'Any decision to say let's remain on fossil fuels, subject to a global market controlled by petro states and dictators, frankly surrenders our energy security and national security.' Mr Miliband was responding to comments made by Mr Farage during a BBC interview on Sunday, in which the Clacton MP argued: 'It is absolutely mindless for a country that produces less than 1% of global CO2 to beggar itself.' Pressed on whether he believed in man-made climate change, Mr Farage told Laura Kuenssberg: 'Do I believe there's climate change? Yes. 'Does man have an influence? Impossible to think we haven't got some influence – as to what proportion it is, I've no idea.' Mr Miliband said such arguments 'fly in the face of people's experience of what has happened to them and what they are still facing'. He also hit out at Reform deputy leader Richard Tice, accusing him of threatening investment in Britain's growing green economy. Mr Tice recently sent a formal letter to clean energy firms warning that Reform would seek to cancel net zero-related contracts if it wins power. 'The renewables agenda no longer enjoys cross-party support,' he wrote. 'As a result, your potential participation in AR7 – and any future auctions based on the Clean Power 2030 framework – carries significant political, financial and regulatory risk for your shareholders.' AR7 refers to the UK Government's upcoming seventh allocation round for Contracts for Difference (CfDs), the primary mechanism for supporting low-carbon electricity generation projects such as offshore wind farms. Winning bidders are guaranteed a set price for their energy, providing investment certainty for developers and helping drive down costs. Mr Tice argued that offshore wind farms, new pylons and energy storage infrastructure are driving up costs and threatening grid stability, adding: 'If you enter bids in AR7, you do so at your own risk. We will seek to strike down all contracts signed under AR7.' In response, Mr Miliband said: 'There are people that want to use their opposition to clean energy and climate action to say it is the fault of that – they are just wrong. 'The really irresponsible thing that Richard Tice is doing with that letter is he is almost deliberately putting at risk tens of thousands of jobs across our country.' He added: 'The net zero economy grew three times faster than the economy as a whole last year – he's sending a message to companies: don't come and invest in Britain. 'We're sending the message: come and invest in Britain.' Later in the session, Labour MP Mike Reader asked Mr Miliband: 'Do you think that your response has been tough enough?' The question prompted a wry smile from the Energy Secretary – a nod to his infamous 'tough enough' line during the 2015 general election campaign. 'I'm happy to be tougher,' he replied. 'It's deeply irresponsible what Richard Tice is doing. I think frankly it is playing politics with people's jobs and people's bills. 'It's deeply, deeply irresponsible – and when it has come into contact with reality, you've even got Reform mayors now saying, well, we're distancing ourselves from this. 'It's not where the British people are. I don't think the British people want a culture war on this.'
Rhyl Journal
21-07-2025
- Business
- Rhyl Journal
Miliband says Farage trying to ‘airbrush history' over UK's fossil fuel reliance
The Energy Secretary criticised the Reform UK leader's claim that it is 'mindless' for the UK to pursue climate action given its relatively small share of global emissions. Speaking to MPs on the Energy Security and Net Zero Committee on Monday, Mr Miliband said: 'Nigel Farage wants to airbrush history – he wants people to forget the fact it was our exposure to fossil fuels that led to the worst cost-of-living crisis in generations.' 'Family finances wrecked, business finances wrecked, public finances wrecked – and we're still paying the price. 'There is only one answer to that, which is homegrown energy that we control – and the security that you get from that homegrown clean energy is now essential for our energy security and national security. 'Any decision to say let's remain on fossil fuels, subject to a global market controlled by petro states and dictators, frankly surrenders our energy security and national security.' Mr Miliband was responding to comments made by Mr Farage during a BBC interview on Sunday, in which the Clacton MP argued: 'It is absolutely mindless for a country that produces less than 1% of global CO2 to beggar itself.' Pressed on whether he believed in man-made climate change, Mr Farage told Laura Kuenssberg: 'Do I believe there's climate change? Yes. 'Does man have an influence? Impossible to think we haven't got some influence – as to what proportion it is, I've no idea.' Mr Miliband said such arguments 'fly in the face of people's experience of what has happened to them and what they are still facing'. He also hit out at Reform deputy leader Richard Tice, accusing him of threatening investment in Britain's growing green economy. Mr Tice recently sent a formal letter to clean energy firms warning that Reform would seek to cancel net zero-related contracts if it wins power. 'The renewables agenda no longer enjoys cross-party support,' he wrote. 'As a result, your potential participation in AR7 – and any future auctions based on the Clean Power 2030 framework – carries significant political, financial and regulatory risk for your shareholders.' AR7 refers to the UK Government's upcoming seventh allocation round for Contracts for Difference (CfDs), the primary mechanism for supporting low-carbon electricity generation projects such as offshore wind farms. Winning bidders are guaranteed a set price for their energy, providing investment certainty for developers and helping drive down costs. Mr Tice argued that offshore wind farms, new pylons and energy storage infrastructure are driving up costs and threatening grid stability, adding: 'If you enter bids in AR7, you do so at your own risk. We will seek to strike down all contracts signed under AR7.' In response, Mr Miliband said: 'There are people that want to use their opposition to clean energy and climate action to say it is the fault of that – they are just wrong. 'The really irresponsible thing that Richard Tice is doing with that letter is he is almost deliberately putting at risk tens of thousands of jobs across our country.' He added: 'The net zero economy grew three times faster than the economy as a whole last year – he's sending a message to companies: don't come and invest in Britain. 'We're sending the message: come and invest in Britain.' Later in the session, Labour MP Mike Reader asked Mr Miliband: 'Do you think that your response has been tough enough?' The question prompted a wry smile from the Energy Secretary – a nod to his infamous 'tough enough' line during the 2015 general election campaign. 'I'm happy to be tougher,' he replied. 'It's deeply irresponsible what Richard Tice is doing. I think frankly it is playing politics with people's jobs and people's bills. 'It's deeply, deeply irresponsible – and when it has come into contact with reality, you've even got Reform mayors now saying, well, we're distancing ourselves from this. 'It's not where the British people are. I don't think the British people want a culture war on this.'
North Wales Chronicle
21-07-2025
- Business
- North Wales Chronicle
Miliband says Farage trying to ‘airbrush history' over UK's fossil fuel reliance
The Energy Secretary criticised the Reform UK leader's claim that it is 'mindless' for the UK to pursue climate action given its relatively small share of global emissions. Speaking to MPs on the Energy Security and Net Zero Committee on Monday, Mr Miliband said: 'Nigel Farage wants to airbrush history – he wants people to forget the fact it was our exposure to fossil fuels that led to the worst cost-of-living crisis in generations.' 'Family finances wrecked, business finances wrecked, public finances wrecked – and we're still paying the price. 'There is only one answer to that, which is homegrown energy that we control – and the security that you get from that homegrown clean energy is now essential for our energy security and national security. 'Any decision to say let's remain on fossil fuels, subject to a global market controlled by petro states and dictators, frankly surrenders our energy security and national security.' Mr Miliband was responding to comments made by Mr Farage during a BBC interview on Sunday, in which the Clacton MP argued: 'It is absolutely mindless for a country that produces less than 1% of global CO2 to beggar itself.' Pressed on whether he believed in man-made climate change, Mr Farage told Laura Kuenssberg: 'Do I believe there's climate change? Yes. 'Does man have an influence? Impossible to think we haven't got some influence – as to what proportion it is, I've no idea.' Mr Miliband said such arguments 'fly in the face of people's experience of what has happened to them and what they are still facing'. He also hit out at Reform deputy leader Richard Tice, accusing him of threatening investment in Britain's growing green economy. Mr Tice recently sent a formal letter to clean energy firms warning that Reform would seek to cancel net zero-related contracts if it wins power. 'The renewables agenda no longer enjoys cross-party support,' he wrote. 'As a result, your potential participation in AR7 – and any future auctions based on the Clean Power 2030 framework – carries significant political, financial and regulatory risk for your shareholders.' AR7 refers to the UK Government's upcoming seventh allocation round for Contracts for Difference (CfDs), the primary mechanism for supporting low-carbon electricity generation projects such as offshore wind farms. Winning bidders are guaranteed a set price for their energy, providing investment certainty for developers and helping drive down costs. Mr Tice argued that offshore wind farms, new pylons and energy storage infrastructure are driving up costs and threatening grid stability, adding: 'If you enter bids in AR7, you do so at your own risk. We will seek to strike down all contracts signed under AR7.' In response, Mr Miliband said: 'There are people that want to use their opposition to clean energy and climate action to say it is the fault of that – they are just wrong. 'The really irresponsible thing that Richard Tice is doing with that letter is he is almost deliberately putting at risk tens of thousands of jobs across our country.' He added: 'The net zero economy grew three times faster than the economy as a whole last year – he's sending a message to companies: don't come and invest in Britain. 'We're sending the message: come and invest in Britain.' Later in the session, Labour MP Mike Reader asked Mr Miliband: 'Do you think that your response has been tough enough?' The question prompted a wry smile from the Energy Secretary – a nod to his infamous 'tough enough' line during the 2015 general election campaign. 'I'm happy to be tougher,' he replied. 'It's deeply irresponsible what Richard Tice is doing. I think frankly it is playing politics with people's jobs and people's bills. 'It's deeply, deeply irresponsible – and when it has come into contact with reality, you've even got Reform mayors now saying, well, we're distancing ourselves from this. 'It's not where the British people are. I don't think the British people want a culture war on this.'
South Wales Guardian
21-07-2025
- Business
- South Wales Guardian
Miliband says Farage trying to ‘airbrush history' over UK's fossil fuel reliance
The Energy Secretary criticised the Reform UK leader's claim that it is 'mindless' for the UK to pursue climate action given its relatively small share of global emissions. Speaking to MPs on the Energy Security and Net Zero Committee on Monday, Mr Miliband said: 'Nigel Farage wants to airbrush history – he wants people to forget the fact it was our exposure to fossil fuels that led to the worst cost-of-living crisis in generations.' 'Family finances wrecked, business finances wrecked, public finances wrecked – and we're still paying the price. 'There is only one answer to that, which is homegrown energy that we control – and the security that you get from that homegrown clean energy is now essential for our energy security and national security. 'Any decision to say let's remain on fossil fuels, subject to a global market controlled by petro states and dictators, frankly surrenders our energy security and national security.' Mr Miliband was responding to comments made by Mr Farage during a BBC interview on Sunday, in which the Clacton MP argued: 'It is absolutely mindless for a country that produces less than 1% of global CO2 to beggar itself.' Pressed on whether he believed in man-made climate change, Mr Farage told Laura Kuenssberg: 'Do I believe there's climate change? Yes. 'Does man have an influence? Impossible to think we haven't got some influence – as to what proportion it is, I've no idea.' Mr Miliband said such arguments 'fly in the face of people's experience of what has happened to them and what they are still facing'. He also hit out at Reform deputy leader Richard Tice, accusing him of threatening investment in Britain's growing green economy. Mr Tice recently sent a formal letter to clean energy firms warning that Reform would seek to cancel net zero-related contracts if it wins power. 'The renewables agenda no longer enjoys cross-party support,' he wrote. 'As a result, your potential participation in AR7 – and any future auctions based on the Clean Power 2030 framework – carries significant political, financial and regulatory risk for your shareholders.' AR7 refers to the UK Government's upcoming seventh allocation round for Contracts for Difference (CfDs), the primary mechanism for supporting low-carbon electricity generation projects such as offshore wind farms. Winning bidders are guaranteed a set price for their energy, providing investment certainty for developers and helping drive down costs. Mr Tice argued that offshore wind farms, new pylons and energy storage infrastructure are driving up costs and threatening grid stability, adding: 'If you enter bids in AR7, you do so at your own risk. We will seek to strike down all contracts signed under AR7.' In response, Mr Miliband said: 'There are people that want to use their opposition to clean energy and climate action to say it is the fault of that – they are just wrong. 'The really irresponsible thing that Richard Tice is doing with that letter is he is almost deliberately putting at risk tens of thousands of jobs across our country.' He added: 'The net zero economy grew three times faster than the economy as a whole last year – he's sending a message to companies: don't come and invest in Britain. 'We're sending the message: come and invest in Britain.' Later in the session, Labour MP Mike Reader asked Mr Miliband: 'Do you think that your response has been tough enough?' The question prompted a wry smile from the Energy Secretary – a nod to his infamous 'tough enough' line during the 2015 general election campaign. 'I'm happy to be tougher,' he replied. 'It's deeply irresponsible what Richard Tice is doing. I think frankly it is playing politics with people's jobs and people's bills. 'It's deeply, deeply irresponsible – and when it has come into contact with reality, you've even got Reform mayors now saying, well, we're distancing ourselves from this. 'It's not where the British people are. I don't think the British people want a culture war on this.'
