Additional investments of around £40 billion are expected in the UK’s renewable electricity generation projects up to 2020, following updated contract terms and strike prices published today and wider reforms to the electricity market.
The strike prices and contracts reinforce the UK’s position as one of the world’s leading renewables markets, and the number one place for business to invest in offshore wind generation.
This will support the growth of the offshore wind industry, with modelling showing that deployment of 10GW by 2020 is achievable, in line with the previously stated range of 8-16GW. This is not a target and actual deployment will depend on technology costs.
Sixteen renewable generation projects also reached the next stage of Final Investment Decision Enabling for Renewables (FIDeR) process today, which could be supported either through investment contracts or the enduring Contracts for Difference (CfD) regime.
The additional investment will generate enough clean power for 10 million homes, and reduce carbon dioxide emissions by over 20 million tonnes.
Increasing 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, these reforms will help to support up to £110 billion of additional investment across the electricity sector by 2020,helping to insulate Britain from future world gas price increases and boosting jobs and growth in every region of the UK.
Energy and Climate Change Secretary Edward Davey said:
“This package will deliver record levels of investment in green energy by 2020. 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.
“With sixteen new major renewable projects progressing in our “go early” stage we are delivering ahead of schedule and are able to begin the move to the worlds first low carbon electricity market faster than expected.”
Press release, December 4, 2013; Image: DECC