The UK government has announced it will financially support eight renewable energy projects which could generate enough electricity to power more than three million homes.
The projects have been offered under Contracts for Difference (CfD), which form part of government’s Electricity Market Reform programme.
“These are the first investments from our reforms to build the world’s first low carbon electricity market – reforms which will see competition and markets attract tens of billions of pounds of vital energy investment whilst reducing the costs of clean energy to consumers, said Energy and Climate Change secretary Edward Davey.
“Record levels of energy investment are at the forefront of the government’s infrastructure programme and are filling the massive gap we inherited. It’s practical reforms like these that will keep the lights on and tackle climate change, by giving investors more certainty,” added Davey.
Commenting, RenewableUK’s deputy chief executive Maf Smith said today’s announcement by government will give the supply chain “confidence to invest in the UK, with costs falling as the clean energy industry develops and scales up”.
“However, we need far more onshore and offshore wind projects during the next decade if we’re not to find our energy security threatened, and the UK further exposed to price shocks from imported fossil fuels, so it’s important the Contracts for Difference regime works for all renewable energy projects, not just those that have secured early contracts,” added Smith.