Renewables Obligation (RO) review to bring £25bn of investment into UK economy
The government has set its banding review for the Renewables Obligation (RO) which suggests renewable energy will bring £25bn of investment into the UK.
Changes to subsidies for renewable electricity could incentivise between £20bn and £25bn of new investment in the economy between 2013 and 2017.
The banding review will support jobs and deliver more clean power with a reduction in costs to consumers between 2013 and 2015, Ministers said.
The government said that support levels for certain marine energy technologies will more than double, while a new band to support existing coal plant converting to sustainable biomass fuels has been introuced. There will be no immediate reduction in support for large-scale solar.
Secretary of state for energy and climate change, Edward Davey said: "The support we're setting out today will unlock investment decisions, help ensure that rapid growth in renewable energy continues and shows the key role of renewables for our energy security."
However, support for onshore wind from 2013-17 will be reduced by 10%, as announced in 2011, and will stand until 2014 when the level will be reviewed. Rates of support for offshore wind will also reduce as the cost of the technology comes down during the decade.
Mr Davey added: "Renewable energy will create a multi-billion pound boom for the British economy, driving growth and supporting jobs across the country."
"The support we're setting out today will unlock investment decisions, help ensure that rapid growth in renewable energy continues and shows the key role of renewables for our energy security."
"Because value for money is vital, we will bring forward more renewable electricity while reducing the impact on consumer bills between 2013 and 2015, saving £6 off household energy bills next year and £5 the year after."
By 2017, the banding package could deliver as much as 79 TWh of renewable electricity per year in the UK, which is almost three-quarters (74%) of the way towards the 108TWh of electricity needed to meet the UK's 2020 renewable energy target, the government said.
On Tuesday July 17, the Department of Environment and Climate Change (DECC) delayed the ROC announcement, which had been expected before the start of Parliament's summer recess, citing that “the announcement was being finalised”.