Additional investments of around £40 billion in renewable electricity generation projects are expected by the UK Department of Energy and Climate Change (DECC) following the department’s publication of updated contract terms and strike prices. However, support for onshore wind and solar will be reduced from 2015 while prices for offshore wind will increase.
According to UK Energy Secretary Ed Daveythe updated contract terms and strike prices will help build a low-carbon energy mix in order to reduce emissions and bring green jobs and growth to the UK. The additional investment will generate enough clean power for 10 million homes and reduce carbon dioxide emissions by over 20 million tonnes. An increase in the amount of home-grown renewable energy will boost energy security, reduce reliance on imported fossil fuels and support up to 200,000 jobs by 2020.
In total, the reforms will help to support up to £110 billion of additional investment across the electricity by 2020, helping to insulate the UK from future world gas price increases and boosting jobs and growth. They will give energy generators a sound, sustainable and long-term basis to invest in renewable energy, particularly offshore wind.
“This package will deliver record levels of investment in green energy by 2020” said Mr Davey. “Our reforms are succeeding in attracting investors from around the world so Britain can replace our ageing power station and keep the lights on. Investors are queuing up to express their interest in these contracts. This shows that we are providing the certainty they need, our reforms are working and we are delivering ahead of schedule and to plan.”
UK government introduces changes to renewable energy subsidies