Government announces £290m boost for renewable energy in Britain

The Government has announced details for the second Contracts for Difference auction for renewable technologies, which launched on April 3rd.

Renewable energy developers will compete for £290m worth of contracts to support the growth of clean energy in Britain.

Contracts for Difference are won through a competitive process which drives down energy costs for consumers and guarantees companies a certain price for the low-carbon electricity they produce over 15 years.

This gives the developers the support they need to attract investment and commence work on different projects.

The contracts made available represent the first part of the Government’s commitment to provide up to £730m of annual support for renewable electricity projects over the course of this parliament.

Energy Minister Jesse Norman said: “This auction underlines that Britain is open for business to companies seeking to invest in low carbon energy.

“It is designed to deliver clean power to a million homes, create jobs in the energy industry and provide new supply chain opportunities, while reducing carbon emissions by some 2.5 million tonnes per year.”

The scheme is funded through a levy which forms a part of energy bills, and projects that only offer the best value for money will win contracts. There is no cost on energy bills until projects are operational and generating low-carbon energy.

The auction process is expected to draw to a close by the autumn, when the winners of the auction and final clearing prices will be announced.

There has been £52bn of investment in renewable energy in the UK since 2010, and for the first time ever exactly half of the UK’s electricity came from low carbon sources in the third quarter of 2016.

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