Renewable Energy Projects to Bring Billions of Investment into the UK

Changes to subsidies for renewable electricity in Britain could accelerate up to £25 billion of new investment and create thousands of new jobs according to the Secretary of State for Energy and Climate Change, Edward Davey.

Bandings for renewable technologies were set last week under the Government’s Renewables Obligation which will support and create new green jobs whilst at the same time minimise energy cost to consumers.

Edward Davey, Secretary of State for Energy and Climate Change, welcomed the decision which will ensure rapid growth in the renewable energy and unlock further green investment.

Mr Davey said: “Renewable energy will create a multi-billion pound boom for the British economy, driving growth and supporting jobs across the country.

“Because value for money is vital, we will bring forward more renewable electricity while reducing the impact on consumer bills between 2013 and 2015, saving £6 off household energy bills next year and £5 the year after.”

The Banding Review (as set out by the DECC) includes:

  • Support for onshore wind from 2013-17 will be reduced by 10% to 0.9ROCs, as consulted on in autumn 2011. This level is guaranteed until at least 2014 but could change after then if there is a significant change in generation costs. A call for evidence on onshore wind industry costs will be launched this autumn and report in early 2013.
  • Rates of support for offshore wind will reduce as the cost of the technology comes down during the decade;
  • Support levels for certain marine energy technologies will more than double from 2ROCs to 5ROCs per MWh, subject to a 30MW limit per generating station;
  • There will be a new band to support existing coal plant converting to sustainable biomass fuels. This will increase the amount of renewable energy produced at less cost to consumers; and
  • There will be no immediate reduction in support for large-scale solar, but there will be a further consultation this year on reduced support levels given recent dramatic falls in costs.