Funding for renewable electricity announced as Government sets out plans to upgrade UK energy infrastructure and increase clean energy investment.
The government has set out plans to upgrade UK energy infrastructure and increase clean energy investment, with the first £290M of Contracts for Difference funding for renewable electricity.
It has reaffirmed its commitment to spend £730M of annual support on renewable energy projects over this parliament, and revealed details for the next Contracts for Difference auction, where companies will compete for the first £290M worth of contracts for renewable electricity projects.
The second Contracts for Difference auction will result in enough renewable electricity to power around one million homes and reduce carbon emissions by around 2.5 million tonnes per year from 2021/22 onwards. Developers of innovative renewable technologies will also be able to deliver the best deal for bill payers.
The maximum price for offshore wind projects is now 25% lower than was set for the last auction, and with multiple bidders for the contract, the price could decrease further.
Within the next decade, the government plan to phase out electricity generation for unabated coal-fired power stations, which will provide confidence to investors that the UK is open to investors in new, cleaner energy capacity in a transition from coal to gas. The government hope to build a diverse energy system giving us greater security of supply, including record investments in renewable technology and the reliable electricity that new nuclear power investment will provide.
Business Secretary Greg Clark said: “We’re sending a clear signal that Britain is one of the best places in the world to invest in clean, flexible energy as we continue to upgrade our energy infrastructure.
“This is a key part of our upcoming Industrial Strategy, which will provide companies with the further support they need to innovate as we build a diverse energy system fit for the 21st century that is reliable while keeping bills down for our families and businesses.”
The application process for the Contracts for Difference allocation round will open in April 2017.
If you would like to read more articles like this then please click here