The UK is to reduce payment support for large-scale solar pv and onshore wind installations in order to divert dwindling funds into tidal and wave energy schemes.
The switch was announced as the Department for Energy and Climate Change (DECC) revealed planned changes to the Renewables Obligation (RO) framework.
The announcement follows separate reports that ministers are looking to cut support for household solar pv in a review of the popular Feed-in Tariff scheme.
The programme of RO cuts will come into effect from next year following a consultation period that runs until the new year.
Ministers hope the new proposals will bring forward a surge of investment in the UK's renewable energy infrastructure.
The RO is currently the main financial mechanism by which the government incentivises the deployment of large-scale renewable electricity generation.
The government says banding reviews to the RO programme are needed to ensure that as market conditions and innovation within sectors change and evolve, renewables developers can continue to receive the appropriate level of support necessary to maintain investments.
Today's proposed changes focus on scalable lower-cost renewable technologies that will deliver the majority of the electricity the nation needs to meet its 2020 targets.
The government says it is reiterating its commitment to offshore wind and marine sectors where the UK has a rich natural resource, and can lead the way in driving down the costs of deployment.
Key changes to the Renewables Obligation announced today, include:
* The reduction of support payments to an average household annual electricity bill
* A cut in support for energy generated by anaerobic digestion from 2015/16
* A proposed new band for biomass conversion
* Hydro-electric support to be halved and microgeneration backing to be slashed
* Onshore wind support will be reduced from 2014/15, while support for offshore wind will be increased
* Tidal stream and wave power will have its support more than doubled up to a 5MW project cap.
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.”
Energy secretary Chris Huhne, added: “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.”
DECC claims that be 2017, as a result of these proposals, the UK will have an installed capacity of 70-75 TWh of renewable electricity. The department says this will be 70% of the way towards the 108TWh of electricity needed to meet the UK’s 2020 renewable energy target.
These proposals are expected to cost between £0.4 and £1.3bn less than retaining current bandings and drive a higher level of deployment than leaving bandings as they are.
DECC says the proposals also provide industry with the certainty needed to make investment decisions and will overall mean a lower impact on consumer bills, without reducing its level of ambition.
R Wides, Durham around 7 months ago