Government add fuel to renewable energy

Energy Secretary Ed Davey has announced that eight major renewable energy projects have been given Government approval. The contracts are the first awarded under the Government's energy market reforms and, as Mr Davey explained, will help to power up to three million homes.

The projects will be given one of the Government's Contracts for Difference, which guarantee prices for renewable energy suppliers.

The eight projects are:

• Beatrice offshore wind, Outer Moray Firth;
• Burbo Bank offshore wind, Liverpool Bay;
• Drax 2nd biomass conversion unit, Selby;
• Dudgeon offshore wind, off the East Yorkshire coast;
• Hornsea 1 offshore wind, North Sea, off the Yorkshire coast;
• Lynemouth biomass conversion, Ashington, Northumberland;
• Teesside biomass with combined heat and power, Middlesbrough;
• Walney extension offshore wind, off Walney island.

There were originally 57 applications, each bidding for the Government's approval. However, should one of the approved eight projects not go ahead, My Davey has said that another project will take its place. He also said that the projects would add almost 5% to the UK clean energy supply.

Mr Davey said, "These are the first wave of our reforms, designed to stimulate investment in low carbon energy, but in a more affordable way than previously." However, Mr Davey also said that the measures would add 2% to household energy bills by 2020, by which time it is hoped up to 30% of electricity will come from renewable sources.

The Department of Energy and Climate Change (DECC) said it expected the investment contracts for the projects would gain Parliamentary approval in May 2014. At that point, they would take legal effect.