Ed Miliband has increased the maximum price wind farms could receive for their energy to attract developers.
The Energy Secretary offered a higher price than last year and extended the contracts in a bid to meet his Net Zero goals.
An auction later this year will decide the price wind farm developers are paid for what they produce.
The maximum guaranteed price for offshore wind farms for the next 20 years will be £113 per megawatt-hour – an increase on last year when it was £102. The figure has climbed despite ministers extending the contracts, which they said would reduce prices.
While the price will be set later this year, it is likely to be far greater than the average wholesale price of electricity, which was £72MWh last year.
