UK awards subsidy contracts to 4.5 GW of new renewables

• 10 years ago (2014-04-24)
• Junior Isles

Europe 1089 Renewables 776

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The UK government has awarded investment contracts to eight renewable energy projects, including five offshore wind farms and three biomass plants together worth £12 billion, under a new power subsidy regime.

The projects are expected to support 8500 jobs in Britain's renewable energy sector and add around 4.5 GW of new electricity generation capacity to the grid when complete, making up 5 per cent of the UK’s renewable energy supply.

The projects are being funded under the UK’s new ‘contracts-for-difference’ scheme which is aimed at giving income security to renewable generators through a set minimum electricity price over 15 years.

Projects given the go ahead include Beatrice offshore wind project (Outer Moray Firth), Burbo Bank offshore wind project (Liverpool Bay), Drax 2nd biomass conversion unit (Selby), Dudgeon offshore wind project (Cromer), Hornsea offshore wind project (East Yorkshire coast), Lynemouth biomass conversion (Ashington), Teesside biomass combined heat and power project (Middlesbrough) and the Walney offshore wind extension (Walney island).

The UK government received 57 original applications for support and Energy Secretary Ed Davey has said there were many companies waiting in the wings if projects fall through.

"We are confident that the eight will go ahead, but if a company decides not to go ahead... there will be another one queuing up behind," Mr Davey said. "These investments are critical to make sure we have got secure, clean energy," he said, pointing to energy supply issues arising from the Ukraine crisis.