The UK government has announced that it will allocate up to £ 557 million to several clean electricity auctions dedicated to less established renewable technologies as part of its Clean Growth Strategy, which will be unveiled this week.
UK Energy Minister Richard Harrington confirmed last Wednesday that up to £ 557 million will be allocated for electricity generation projects using less established renewable technologies. This decision is part of the Clean Growth Strategy to be launched by the British Government to boost a clean energy system and stimulate economic growth.
Since 1990, UK emissions have fallen by more than a third, while the economy has grown by two-thirds. Low-carbon generation has provided more than half (52%) of the country’s electricity this summer, according to National Grid, while according to a PwC analysis quoted by the UK government in a statement the UK decarbonizes faster than any other G20 country.
The Clean Growth Strategy, to be released this week, will build on these achievements and “will ensure that Britain remains a global leader in the progress towards a low carbon economy,” the Ministry of Business, Energy and Industrial Strategy says. “It will ensure that the whole country can benefit from new technologies, jobs and businesses that are good for consumers, the environment and the economy.”
As part of the strategy, project developers will compete in Contracts for Difference auctions that “reduce energy costs for consumers and increase business confidence,” the statement said.
557 million pounds
Indeed, the latest auction in the UK – more than 3 GW of new generation that could feed 3.6 million homes – unveiled record bids for offshore wind: it was no less that 57.50 pounds (about 63, 80 euros) per megawatt hour including costs of connection to the grid, a drop in the price of offshore wind energy by 50% compared to the first auction held in 2015.
Energy Minister Richard Harrington has pointed out that the Government’s Clean Growth Strategy will set the way for the UK as a whole to benefit from the global move towards a low carbon economy.
“We have demonstrated without a doubt that renewable energy projects are an effective way of reducing our emissions, while creating thousands of good jobs and attracting billions of pounds of investment,” he said.
The Strategy includes ambitious proposals on housing, business, transport and environment, as well as on the electricity sector. It will also show how actions taken to address emissions have helped reduce energy bills for households, the Ministry said.
The next auction of Contracts for Difference is scheduled for spring 2019.