Britain accelerates clean energy projects through a new energy reform scheme

The British government made changes on Tuesday to its main scheme to promote clean energy projects. Contract lengths were extended and auction budgets were changed in an effort to speed up the rollout of renewable energy.

Britain's plans for decarbonising its electricity sector are centered around offshore wind. The aim is to increase capacity from 15 GW to 43-50 Gigawatts (GW) by the end decade. A government report published in November warned that it would be difficult to achieve this goal.

The Contracts for Different scheme in Britain is the main way to secure clean energy projects. It holds annual auctions, which offer a minimum guaranteed price for power produced. This helps spur investment into new projects.

The government announced that contracts for onshore, offshore, and solar power projects would be increased to 20 years instead of 15 years. It added that the longer term would allow consumers to spread their costs over a greater period and give investors more certainty.

Reforms will also affect the way budgets for auctions are calculated. Energy ministers will be able view developer bids prior to setting the budget. This will allow for more accurate capacity procurement, and ensure better value for consumers.

Ed Miliband, Energy Secretary, said: "These reforms give developers the confidence they need to build projects in Britain. They will help deliver more clean energy projects and support thousands of jobs." Reporting by Marwa Rashed. Mark Potter (Editing)

(source: Reuters)