Renewable-power projects in the UK will compete for guaranteed payments totaling more than £200million ($340million) a year of as part of its first auction of contracts to spur low-carbon electricity.
An auction of so-called contracts-for-difference will take place this year and an extra £50million a year will be offered at a sale next year, the Department for Energy and Climate Change said today in an e-mailed statement. By 2021 as much as £1billion a year may be available, it said.
The budget makes clear the level of funding for renewable energy projects as the UK seeks to meet European Union emission targets. It’s on top of funding already received under the Renewables Obligation and Feed-in-Tariff subsidy programs.
“These projects will create green jobs and green growth, reduce our reliance on foreign-controlled volatile energy markets and make sure bill payers get the best possible deal,” Energy Secretary Ed Davey said in the statement. “Average annual investment in renewables has doubled since 2010 – with a record breaking 8 billion pounds worth in 2013.”
According to the budget, the government is making available in this year’s auction £50million a year for projects starting in the 2015-16 tax year using technologies such as wind and solar power that it deems “established.” Another £155million a year of payments will be made available to projects that start in the 2016-17 tax year, and use less- developed technologies, such as wave and tidal power.
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