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Clegg and Huhne set out government commitment to renewables

20 October 2011

Proposals to support renewable electricity and bring forward investment in the UK's energy infrastructure have been published by the Government. The consultation proposes new support levels for large scale renewable electricity from 2013-17 (2014-17 for offshore wind) under the Renewables Obligation (RO). These proposals are expected to cost between £0.4bn and £1.3bn less than retaining current bandings and drive a higher level of deployment than leaving bandings as they are.

Deputy Prime Minister Nick Clegg said: “Investing in green energy boosts growth and creates jobs - the offshore wind sector alone could provide up to 66,000 jobs in this country by 2020. Supporting clean, green, secure energy is the right thing to do for both the environment and the economy. Today’s announcement makes clear the Government’s commitment to supporting long-term investment in the UK’s renewables industries."

Chris Huhne, Secretary of State for Energy and Climate Change said: “The renewables industry can bring in billions of pounds of investment into the UK economy. Our ambitions for these technologies reflect our desire for the UK to be the number one place to invest. We have studied how much subsidy different technologies need. Where new technologies desperately need help to reach the market, such as wave and tidal, we’re increasing support. But where market costs have come down or will come down, we’re reducing the subsidy.”

By 2017, as a result of these proposals, the governmenr expects to see 70-75TWh of renewable electricity in the UK.  This is 70% of the UK’s 2020 renewable energy target of 108TWh.

The consultation on banding for the Renewables Obligation is available on the DECC website. The consultation runs to 12th January 2012.

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