The UK government has announced a record budget of £1.5 billion for renewable energy schemes, marking a significant increase aimed at boosting the sector.

This budget represents a 50% increase from the previous year, reflecting the Labour government's commitment to clean energy development.

Energy Secretary Ed Miliband confirmed the additional £500 million allocated for the upcoming renewable energy auction, which is critical for attracting bids.

This budget is seven times larger than the amount available at last year's auction, which failed to secure new offshore wind contracts.

The increased budget allows offshore wind projects to compete for up to £1.1 billion, potentially generating enough energy to power nearly 5 million homes.

Funding for emerging clean energy technologies, such as floating offshore wind and tidal power, has also been raised to £270 million.

The government aims to quickly expand renewable energy to reduce greenhouse gas emissions and enhance energy independence, especially following record gas prices due to the Ukraine conflict.

Miliband described last year’s auction as a 'catastrophe' and emphasized the need for a transition away from fossil fuels towards energy independence.

While the renewables industry has welcomed the extra funding, there are concerns that without additional changes, new projects may not be completed in time.

Concerns exist that guaranteed prices for renewable energy could exceed market prices in 2030, potentially costing taxpayers money.

Experts believe the auction scheme is likely to break even and could potentially save households £30-40 per year on energy bills during future gas crises.