Government and lottery give over £105 million to renewable energy

The Government has announced a further £55.5 million for renewable energy, with £50 million more being donated by the National Lottery, on top of the Prime Minister’s announcement of £100 million for renewables last week.


The Government’s £55.5 million fund, announced on 10 March by the Department of Trade and Industry (DTI), is for renewable energy research and development and will cover a wide range of technologies, including wind, hydro and solar energies, and biofuels. It also covers research and development into new technologies such as fuel cells, and will be available over three years.

The National Lottery’s funding is part of a £1.5 billion boost to sport, health and the environment. Of the share being donated to renewable energy, £33 million will go towards constructing plants that will use energy crops (see related story), £10 million will be in the form of capital grants for offshore wind energy, and £3 million will go to small scale biomass heating and combined heat and power (CHP). The remaining £4 million is designed to provide some flexibility in responding to proposals.

“Government is now proposing a very substantial injection of capital grants for offshore wind and energy crops projects,” said Peter Hain, Minister for Energy (see related story). “It will provide grants to green energy companies to help fund the cost of plant construction. The Government is determined to bring offshore wind and energy crops projects from the demonstration stage into full commercial development.”

“The Government is doing everything it can to help industry meet our target of supplying 10% of our electricity from renewable sources by 2010,” said Hain. “With the introduction of the Renewables Obligation, the Government will be establishing an assured market for renewables for the next 25 years.”

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