A record pipeline of investments of around £40 billion is expected in renewable electricity generation projects up to 2020, following updated contract terms and strike prices and wider reforms to the electricity market announced by the UK government.
The UK is now on track to meet that target, and will have doubled the amount of electricity generated from renewables from 15% to over 30% by 2020.
And Energy and Climate Change Secretary Edward Davey said that there is currently over 20GW of renewables capacity operational in the UK – a figure that could double by 2020 as a result of the Government’s reforms.
He added; “We have a very healthy pipeline in key technologies, with a total of almost 11GW of offshore and onshore wind with planning consent and awaiting construction. And if all the 8GW of projects which are proceeding under FIDeR are built through investment contracts or under the enduring CfD regime they could contribute around 30% of the new renewables generation we need by 2020.
Energy makes up 58% of the total infrastructure pipeline in Government’s National Infrastructure Plan. Investment in renewables, Carbon Capture and Storage technology, new nuclear and gas is required to replace 10-12% of current power generating capacity, which is due to close over the coming decade.
Davey said: “The updated contract terms and strike prices will help to build a low-carbon energy mix to keep the lights on, reduce emissions and bring green jobs and growth to the UK.
“The additional investment will generate enough clean power for 10 million homes, and reduce carbon dioxide emissions by over 20 million tonnes.
“Increasing the amount of home-grown renewable energy will boost energy security, reduce reliance on imported fossil fuels, and support up to 200,000 jobs by 2020 – boosting employment and growth in every region of the UK”.