A multi-million-pound boost for cleaner, more secure energy will make Britain the ‘first choice’ for investors, says Energy Secretary Grant Shapps when he announced a £22million increase in Government backing for renewables through the flagship “Contracts for Difference” scheme.
The scheme – launched in 2014 – is the Government’s main system for supporting low-carbon electricity generation and has already led to an increase in the proportion of the UK’s energy coming from renewables.
In 2022, renewables fuelled around 42 per cent of the UK’s electricity generation – up from 7 per cent in 2010 – compared to around 21 per cent in the US and 23 per cent in Japan.
In the first quarter of 2023, renewables generated a record 48 per cent of our electricity, all making strong progress towards our targets to deliver a decarbonised power sector by 2035 and net zero by 2050.
Minister of State for Energy Security and Net Zero Graham Stuart, the MP for Beverley and Holderness, said: “Our successful, world-leading scheme has accelerated the roll-out of renewable, homegrown energy.
“Today’s increase will improve energy security and maximise the potential of the scheme. This will result in investment, a stronger renewables sector and growth to our economy.”
The increased funding combined with the introduction of annual auctions, will boost investments in Britain’s world-leading renewable industry, while strengthening the UK’s energy security, fostering growth in the country’s green industries and reducing exposure to volatile global gas prices.
Energy Security Secretary Grant Shapps said the Russian invasion of Ukraine had made it plan that the UK had to do whatever was necessary to bolster the country’s energy security. Funding through our flagship Contracts for Difference scheme – the lifeblood of our renewables industry for nearly a decade – will help grow our economy by making Britain the first choice for investors in renewable energy projects and secure skilled jobs for future generations.
“This will be the case for established technologies like solar, and new innovations like floating offshore wind and, alongside our backing for oil and gas, carbon capture and our revival in nuclear, will ensure we can help power more of Britain from Britain for decades to come.”
Today’s new funding for the current round (AR5) will mean:
- An increased budget for established technologies such as solar and offshore wind – from £170 million to £190 million;
- An increase in the budget for emerging technologies such as floating offshore wind – up from £35 million to £37 million; and
- Maintaining £10 million ring-fenced budget for tidal stream projects
This funding boost is expected to send a powerful signal to the industry, increasing developer confidence in the sector every year and enhancing the UK’s reputation as among the most attractive places to invest and grow the economy, with nearly 25,000 jobs directly supported by renewable electricity sectors in 2021.
