Miliband approves rampion 2 offshore wind farm amid concerns

In early April 2025, Energy Secretary Ed Miliband approved the establishment of the Rampion 2 offshore wind farm, located off the Sussex coast of England. This ambitious project is set to have a generation capacity of 1,200 MW and will consist of up to 90 turbines, each taller than the Eiffel Tower. While this approval represents a significant step forward in renewable energy development, it faces challenges, particularly regarding the financial aspects of the project as it has yet to secure a government subsidy. This uncertainty arises due to delays in an important auction round associated with Contracts for Difference agreements, which incentivize renewable energy developers by guaranteeing a specific price for the electricity generated. The Contracts for Difference agreements are essential for protecting developers against market fluctuations—if electricity prices drop below a predetermined strike price, the government compensates the difference. Unfortunately, the previous auction round revealed that the strike prices cleared above the current market price for offshore wind, impacting the viability of projects like Rampion 2. The government is currently undergoing consultations to adjust these terms, which adds another layer of uncertainty to renewable energy prospects. This situation is particularly pressing as consumers in the UK are already burdened by £17 billion annually in environmental levies and energy taxes. To meet national energy goals by 2030, the UK must ramp up energy production dramatically: offshore wind projects need to increase outputs fourfold, onshore wind fivefold, and solar generation must go up seven times. Yet, despite these ambitious targets, the financial mechanisms to support them remain shaky. Miliband’s only feasible approach to secure such increased capacities involves offering larger subsidies to developers, convincing them to initiate new projects even as questions about financial sustainability linger. The existing electrical grid in Britain also presents significant challenges as the demand for renewable energy grows. The National Energy System Operator has mandated that network operators prioritize connecting renewable energy sources. However, this has resulted in many instances of curtailment, where energy generated from projects like the Seagreen wind farm cannot be distributed due to grid capacity limits. In the previous year, curtailment fees for Seagreen reached £65 million, as energy companies were forced to reduce output while compensating for the lost potential income. As Rampion 2 moves forward amidst some local opposition, it highlights the broader issues surrounding funding and infrastructure in the UK’s push for renewable energy solutions. Ultimately, consumers nationwide will likely bear the financial impacts of these developments, raising concerns about long-term affordability and sustainability of such large-scale projects.