Renewable energy dealers will contest in a Government of United Kingdom auction, that will boast a GBP 265 million subsidy pot. The UK Government is targeting to sustain a vast number of projects in the renewable energy sector through this subsidy scheme in the latter part of 2021. Renewable energy projects like wind, tidal, and solar energy projects will contest in an auction for this contract. The funds are also included for onshore schemes.
UK Government auction pot for renewable energy projects is valued at GBP 265 million
Under the scheme, wind energy developers (offshore) will contest for contracts that are up to GBP 200 million in worth, per year. Wind and solar energy farms established onshore will follow, with their foremost subsidies to be issued in over 5 years.
In conjunction with the GBP 200 million subsidy pot for offshore wind farms, there is an additional GBP 55 million made accessible to the developing renewable technologies like tidal energy, out of which GBP 24 million will be reserved for floating wind farms.
Chief Executive of Renewable UK, Dan McGrail, stated that the government-funded scheme would encourage private investment of more than GBP 20 billion. This would provide an essential boost to the UK supply chain and the employment rate in the country. It would also facilitate a reduction in energy bills, thus helping the UK to achieve its climate goals.
Energy Minister, Anne Marie Trevelyan, stated that the newest round of the scheme would aid the subsequent generation of renewable energy projects that are required to generate power in the UK houses.
Boris Johnson, the Prime Minister of the United Kingdom, has drafted plans in 2020 to support offshore wind farms of 40GW capacity by the end of this decade. This plan will be a part of the government’s agenda to ‘build back greener’ from the ongoing pandemic.
Prime Minister Johnson’s ’10-point-plan’ is also inclusive of finances for millions of electric vehicles on the British streets, low-carbon hydrogen, and a replacement of gas boilers with 600,000 electric heat pumps by 2028.
These plans envisioned by the UK government will play as an important tool in reducing carbon emissions from the United Kingdom.