Onshore wind, solar, hydro and energy-from-waste projects will have to compete against each other for renewables subsidies in future, according to DECC.
The department intends “to move to immediate competition” for well-established renewable electricity technologies following consultation.
DECC is keen on this because it would encourage development of the cheapest renewables, so lowering subsidies’ impacts on energy bills.
The move to competition was first floated in December’s electricity market reform (EMR) delivery plan and later confirmed in a DECC consultation on 16 January.1,2 The EMR plan confirms renewable electricity subsidy levels under the government’s forthcoming ‘contracts for difference’ scheme, due to start in April 2015 (endsreport.com/41957). Under this, renewables will sign contracts guaranteeing them a price for their electricity for 15 years.