UK’s Energy and Climate Change Secretary Ed Davey announced that renewable energy projects in the UK will compete over a £200 million budget annually as a part of the government’s reforms to the electricity market.
The funding is a part if the new Contracts for Difference, which will provide much needed long-term certainty and reduce risk for investors. The government is signalling that at least £50 million is planned for an auction round in 2015, with a total of £1 billion potentially being available for further projects, including Carbon Capture and Storage.
Mr Davey says: “These projects will create green jobs and green growth, reduce our reliance on foreign-controlled volatile energy markets and make sure bill payers get the best possible deal.”
These new available funds could mean a chance to develop more CCS projects in the UK, in addition to the projects financed by the CCS Commercialisation Programme.