Energy security Grant Shapps has announced a £22 million increase in Government backing for renewables through the flagship “Contracts for Difference” scheme – taking the total budget to £227 million.
The government has increased the budget for solar and offshore wind technology from £170 million to £190 million and for emerging technology, such as floating offshore wind, from £35 million to £37 million.
A £10 million ring-fenced budged has also been announced for tidal stream projects.
Subscribe to Sustainability Beat for free
Sign up here to get the latest sustainability news sent straight to your inbox each morning
Deputy prime minister Oliver Dowden is also set to announce the installation of the first of over two hundred 260 meters tall wind turbines is installed at Dogger Bank – becoming the world’s largest offshore windfarm.
When complete, the 277 turbines will be capable of powering the equivalent of up to 6 million homes annually. Dogger Bank is being built in three phases – Dogger Bank A, B and C – by renewables developers SSE Renewables, Equinor and Vargronn.
Minister of state for energy security and net zero Graham Stuart said the boost in renewables will “improve energy security and maximise the potential of the Contracts for Difference scheme.”
The Contracts for Difference scheme – launched in 2014 – is the government’s main system for supporting low-carbon electricity generation.
Shapps said the scheme has been “the lifeblood of our renewables industry for nearly a decade” and it will “help grow our economy by making Britain the first choice for investors in renewable energy projects and secure skilled jobs for future generations.”
Earlier this week, prime minister Rishi Sunak announced his planned to “max out” the UK’s oil and gas reserves as he announced over 100 new licences for North Sea drilling.
But many questioned whether clean energy investors would want to put money into the UK.
UK Sustainable Investment and Finance Association (UKSIF) chief executive James Alexander said the decision to back the North Sea “sends entirely the wrong signals to investors on the credibility of the UK’s plans to reduce carbon emissions.”
