Britain’s government has set the preliminary annual budget for the Contract for Difference support structure for their renewable set at £205 million. Funding for the first allocation rounds starting in the 4th quarter will be providing long-term clarity and a reduction for additional risks for investors.
The Energy Secretary said that since the renewable energy projects will be bidding competitively for new contracts which will later guarantee a newer and cleaner electricity generation that will be constructed at the lowest possible cost to energy consumer.
The initial and preliminary funding round will be supporting £50 million of established technologies such as onshore wind, 5MW-plus hydro and solar PV. An additional £155 million will be allotted to less established sectors such as offshore marine, wind and island wind.
At least £50 million for well established technologies will provided with the second allocation round by October of 2015. Budgets for less established technologies in that round has not reached its finality and has yet to be decided in its merits.
The total expenditures and costs to 2021 could amount to £1 billion, including carbon capture and storage. Budgets are considered supplementary to Renewable Obligations support and funding for the eight FID Enabling contracts awarded earlier for this year. Figures are indicative and subject to change when final budgets are authenticated.
The plan is to empower the expansion of employment as it will be building cleaner and more secure electricity infrastructure for the future. Bt drastically reforming the electricity markets, the company is making sure that curbing the carbon emission sector will come out as the lowest possible cost to the general consumer.
The average yearly annual investment in terms of renewables has doubled in the past four years with a record breaking £8 billion worth last year. Funding was managed under Levy Control Framework which caps the expenditures to consumers of renewable energy policies.
With the Solar Trade Association making allegations that the government is supporting nuclear and similar expensive renewables over value for-money solar sustaining energy, the Renewable Energy Association is likewise contesting the said limited funding for key technologies namely solar, biomass and onshore wind, it will consequently send grave repercussions throughout the industry.