LONDON (Reuters) -The British government on Tuesday made changes to its main scheme for promoting clean energy projects, extending contract lengths and changing how auction budgets are set in a bid to accelerate the roll-out of renewable energy.
Offshore wind is at the heart of Britain’s plans to decarbonise its electricity sector by 2030. It aims to boost capacity to 43-50 gigawatts by the end of the decade, from around 15 GW now, although a government report in November said it would be a challenge to reach that goal.
Britain’s Contracts for Difference scheme is its main mechanism for securing clean energy projects and it holds annual auctions for subsidies, offering a guaranteed minimum price for the power produced to help spur investment in new projects.
Under the new rules, contracts for offshore wind, onshore wind, and solar projects will increase to 20 years from 15 years, the government said in a statement, adding the longer terms would spread costs over a longer period for consumers and provide greater certainty for investors.
The reforms will also change the way auction budgets are determined. The energy minister will now be able to view developer bids before setting the final budget, allowing for more accurate capacity procurement and ensuring better value for money for consumers.
“These reforms will give developers the certainty they need to build in Britain, helping deliver more clean power projects and supporting thousands of jobs,” Energy Secretary Ed Miliband said.
(Reporting by Marwa Rashad. Editing by Mark Potter)
