Support for large-scale renewables announced

The government has today (20 October) announced its proposed new support levels for large-scale renewable electricity generation.

The Renewables Obligation payment rates will apply from 2013 to 2017 (2014-17 for offshore wind). It is predicted that the proposals will result in 70-75 TWh of renewable electricity in the UK by 2017, around 70% of the 2020 target.

“Today’s announcement makes clear the government’s commitment to supporting long-term investment in the UK’s renewables industries,” Deputy Prime Minister Nick Clegg said.

It is expected the proposed payments will cost between £0.4bn and £1.3bn less than retaining current bandings and drive a higher level of deployment.

Many renewable energy companies have been waiting on the outcome of this banding review before making investment decisions and it is hoped the announcement will give them the certainty to progress with plans.

“We have studied how much subsidy different technologies need,” Chris Huhne, secretary of state for energy and climate change said. “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.”

The proposed new payment rates can be found at http://www.decc.gov.uk/en/content/cms/news/pn11_85/pn11_85.aspx