The majority of UK homes could be powered by offshore wind by 2020.

New plans unveiled by Energy Secretary John Hutton could result in up to 7,000 turbines, per two mile of coast being installed to boost wind produced energy.

Speaking to the European energy industry in Berlin, Mr Hutton launched a Strategic Environmental Assessment of the seas surrounding the UK, paving the way for a possible 'third round' of wind energy development and beyond: "The draft plan I'm setting out today could allow companies to develop up to 25 gigawatts of offshore wind by 2020, in addition to the 8 gigawatts already planned.

"This potential major expansion will be subject to the outcome of a Strategic Environmental Assessment. But if we could manage to achieve this, by 2020 enough electricity could be generated off our shores to power the equivalent of all of the UK's homes. This could be a major contribution towards meeting the EU's target of 20 per cent of energy from renewable sources by 2020."

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Mr Hutton said the challenge for Government and for industry is to turn this potential - for our energy and economy - into a cost-effective reality.

"The UK is now the number one location for investment in offshore wind in the world and next year we will overtake Denmark as the country with the most offshore wind capacity. I want to ensure the UK remains one of the best places for renewable business.

"Our trajectory on renewables is beyond question. They are as central to our future low carbon economy as chimneys were to the industrial revolution and road building following the invention of the mass produced car." said Mr Hutton

The 'first round' of offshore wind farms, in 2001, comprised a number of small demonstration projects. The 'second round', in 2003, resulted in the award of options for leases for larger scale projects in three designated areas - the Thames Estuary, the Greater Wash and the North West. Based on current plans under the first and second leasing rounds, about 8GW of capacity could be operational by around 2014. This includes the 1GW London Array which is the largest planned offshore wind farm in the world.

The proposal for a possible 'third round', and further regular rounds, of offshore wind development announced today would open up the vast bulk of the UK's continental shelf to large scale development. It would allow for up to a further 25GW of offshore capacity on top of the planned 8GW. In total this could generate enough power for up to 25 million homes by 2020.

(GK/JM)