Government announces £290m of renewable energy contracts
The Government has announced £290m worth of contracts to support the growth of clean energy in Britain.
Renewable energy developers will now compete in the second Contracts for Difference auction.
They will be won through a competitive process which should drive down energy costs for consumers and guarantees companies a certain price for the low-carbon electricity they produce over 15 years.
This gives them the support and certainty they need to attract investment and get projects off the ground.
Energy minister Jesse Norman said: “This auction underlines that Britain is open for business to companies seeking to invest in low carbon energy.
Jesse Norman MP
“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 contracts 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.
They support a key pillar of the Industrial Strategy by ensuring a cleaner, more flexible energy supply.
The scheme is funded through a levy which forms a part of energy bills and only projects that offer the best value for money will win contracts.
There is no cost on energy bills until projects are up and running and generating low-carbon energy.
The auction process started yesterday, will continue over the coming months, and is expected to close by autumn.