Energy Security Secretary Grant Shapps has announced a £22 million increase in government funding for renewables. The boost is set to solidify Britain’s position as the preferred choice for investors seeking opportunities in sustainable energy projects.
The additional funding will be directed towards the flagship “Contracts for Difference” scheme. It has been instrumental in supporting low-carbon electricity generation since its inception in 2014. This latest investment takes the total budget for the current auction to an impressive £227 million.
The Contracts for Difference scheme has already proven successful, contributing to a notable increase in the proportion of the UK’s electricity derived from renewable sources. In 2022, renewables accounted for approximately 42 per cent of the country’s electricity generation. A remarkable surge from the 7 per cent recorded in 2010. In comparison, the US and Japan had renewable energy contributions of around 21 per cent and 23 per cent, respectively.
Building on this progress, renewables made history in the first quarter of 2023 by generating a record-breaking 48 per cent of the UK’s electricity. These accomplishments align with the nation’s ambitious targets to achieve a decarbonized power sector by 2035. Moreover, reach net zero emissions by 2050.
Renewed Focus on Established Technologies: Solar and Offshore Wind
The infusion of additional funding, combined with the introduction of annual auctions this year. Aims to bolster investments in the UK’s world-leading renewable energy industry. This move not only strengthens the country’s energy security but also fosters growth in the green sector and reduces reliance on volatile global gas prices.
Highlighting the urgency to enhance energy security, Energy Security Secretary Grant Shapps pointed to Russia’s actions against Ukraine as a wake-up call. He stressed the need to bolster energy resilience and emphasized the pivotal role of renewable energy in achieving this goal.
The increased budget allocation for established technologies, including solar and offshore wind, will rise from £170 million to £190 million. Furthermore, emerging technologies like floating offshore wind will receive a significant boost, with the budget increasing from £35 million to £37 million. The government will also maintain a ring-fenced budget of £10 million for tidal stream projects, ensuring continued support for this promising technology.