Green projects to share £325m

Published: Thursday 26th February 2015 by The News Editor

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Green energy projects that have won a share of Government support worth a total of £325 million in their first year will be announced today.

Energy Secretary Ed Davey said the awarding of the green energy projects would be the “second biggest in British history”.

The winners of the auction will be awarded 15-year contracts which guarantee a price for the power generated as part of the Government’s plan to encourage renewable energy.

In a message on Twitter Mr Davey said last night: “Huge renewable electricity announcement tomorrow – 2nd biggest in British history (after 1st biggest last April!) #climateaction”

The “contracts for difference” pay an agreed ”strike price” for electricity generated by low-carbon technologies to give investors certainty on their returns.

There are £50 million of subsidies available for established technologies such as onshore wind farms and solar power for projects commissioning in 2015/16, with a further £15 million for schemes commissioning from 2016/17 onwards.

Less established technologies, such as offshore wind and biomass combined heat and power, will compete for a share of £260 million – £155 million for projects commissioning from 2016/17 and an additional £105 million for schemes commissioning from 2017/18 onwards.

The projects that win the auction will receive 15-year contracts – meaning that the total spend per year for contracts allocated in the first allocation round will be up to £325 million.

When the auctions were launched last month Mr Davey said: ” We are transforming the UK’s energy sector, dealing with a legacy of underinvestment to build a new generation of clean, secure power supplies that reduce our reliance on volatile foreign markets.

“The high demand for contracts shows that we’re one of the top places for renewables investment, and the best place in the world for investing in offshore wind.

“Renewable electricity generation and investment have both more than doubled since 2010. We attracted a record breaking £10 billion worth of investment in 2014 and by making projects compete for support, we’re ensuring consumers get the best possible deal as well as a secure and clean power sector.”

Published: Thursday 26th February 2015 by The News Editor

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