Government plans to increase clean energy investment
The Government says it will spend £730 million of annual funding on renewable electricity projects over this parliament, and has set out further details for the next Contracts for Difference auction, where companies will compete for the first £290 million worth of contracts for renewable electricity projects.
The second Contracts for Difference auction should 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. It should also allow developers of innovative renewable technologies 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 a competitive auction could bring that price down further.
In addition, ministers have set out proposals for the next steps to phase out electricity generation from unabated coal-fired power stations within the next decade. This long-term plan should send out a message that the UK is open to investors in new, cleaner energy capacity as the country transitions from coal to gas.