LONDON: British government support for low-carbon electricity generation will triple by 2020 after the energy and finance ministries reached a deal to end months of wrangling over costly reforms.
The move is expected to boost the share of renewables in Britain's energy mix to 30 percent by 2020, outpacing European Union targets of 20 percent, while creating tens of thousands of new jobs.
Under the agreed Levy Control Framework, spending on renewable power generation will increase to 7.6 billion pounds ($12.12 billion) a year in real terms by 2020, from the current 2.35 billion pounds, to reduce dependence on gas.
The renewable spending plans will be funded through further rises in household energy bills which are increasingly unaffordable for many consumers.
""Bills are going to rise, the proposals are very negative for consumers," Liberium Capital, a London-based investment bank said.
"At face value a 7.5 billion pounds nominal rise in low carbon support could equate to an 80 pounds (20 percent) per household bill increase," it said.
Renewable spending will be focused on rewarding low-carbon power producers like renewables, nuclear and fossil fuel plants fitted with carbon capture and storage technology, a Department of Energy and Climate Change (DECC) spokesman said.
Divisions over spending plans between energy minister Ed Davey and finance minister George Osborne have delayed key agreements over energy policy at a time of painful austerity measures introduced by the government.
Industry group RenewableUK said the spending plans would create tens of thousands of jobs, bring forward at least 40 billion pounds of private sector investment and allow for a massive expansion of the UK's renewable energy sector.
The extra investment announced on Friday will see renewables' share of the energy mix rise from 11 percent now, driven primarily by the 31 gigawatts of wind energy to be installed by 2020.
Britain's renewable energy targets are more ambitious than that of its European neighbours, including Germany, which is on track to meet its 18 percent target by 2020, despite deciding to phase out nuclear power last year, Eurostat data shows.
France already produces the vast majority of its electricity from low-carbon nuclear power plants.
The spending increase will also help to support new nuclear power and the commercial use of untested carbon capture and storage technologies, the government said.
indiatimes.com
The move is expected to boost the share of renewables in Britain's energy mix to 30 percent by 2020, outpacing European Union targets of 20 percent, while creating tens of thousands of new jobs.
Under the agreed Levy Control Framework, spending on renewable power generation will increase to 7.6 billion pounds ($12.12 billion) a year in real terms by 2020, from the current 2.35 billion pounds, to reduce dependence on gas.
The renewable spending plans will be funded through further rises in household energy bills which are increasingly unaffordable for many consumers.
""Bills are going to rise, the proposals are very negative for consumers," Liberium Capital, a London-based investment bank said.
"At face value a 7.5 billion pounds nominal rise in low carbon support could equate to an 80 pounds (20 percent) per household bill increase," it said.
Renewable spending will be focused on rewarding low-carbon power producers like renewables, nuclear and fossil fuel plants fitted with carbon capture and storage technology, a Department of Energy and Climate Change (DECC) spokesman said.
Divisions over spending plans between energy minister Ed Davey and finance minister George Osborne have delayed key agreements over energy policy at a time of painful austerity measures introduced by the government.
Industry group RenewableUK said the spending plans would create tens of thousands of jobs, bring forward at least 40 billion pounds of private sector investment and allow for a massive expansion of the UK's renewable energy sector.
The extra investment announced on Friday will see renewables' share of the energy mix rise from 11 percent now, driven primarily by the 31 gigawatts of wind energy to be installed by 2020.
Britain's renewable energy targets are more ambitious than that of its European neighbours, including Germany, which is on track to meet its 18 percent target by 2020, despite deciding to phase out nuclear power last year, Eurostat data shows.
France already produces the vast majority of its electricity from low-carbon nuclear power plants.
The spending increase will also help to support new nuclear power and the commercial use of untested carbon capture and storage technologies, the government said.
indiatimes.com
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