23rd Apr 2014 13:20
LONDON (Alliance News) - Eight major renewable energy projects have been given the go-ahead by the UK government as part of its ongoing electricity reforms.
The Department of Energy & Climate announced on Wednesday that the new projects should support 8,500 jobs and could add a further 4.5 gigawatts of low-carbon electricity to Britain's energy mix.
The projects are expected to provide up to GBP12 million of private sector investment by 2020 and once built the projects should contribute around 15 terrawatt hours, or 14% of the renewable energy expected to by part of the UK's energy mix by 2020.
?These contracts for major renewable electricity projects mark a new stage in Britain?s green energy investment boom," Energy and Climate Change Secretary Ed Davey said in a statement. ?These are the first investments from our reforms to build the world?s first low carbon electricity market - reforms which will see competition and markets attract tens of billions of pounds of vital energy investment whilst reducing the costs of clean energy to consumers."
The projects have been offered under the Contracts for Difference scheme, where long-term contracts, to support the development of low carbon electricity generation are awarded as part of the government's market reform programme.
The winning projects include offshore wind farms, coal to biomass conversions and a dedicated biomass plant with combined heat and power.
The successful projects include the Drax Unit #1 biomass conversion site owned by Drax Group PLC, which has a capacity of 645 megawatts and is located in North Yorkshire.
Drax announced separately on Wednesday that it has commenced legal proceedings against the UK government after it overturned a decision advising that two generating units at its Drax Power Station were eligible for investment contracts under the contracts for difference scheme.
The company said it was notified by the UK government that the second unit conversion at the Drax Power Station is no longer eligible for an investment contract and began legal proceedings over the exclusion.
Drax shares were down 11.1% to 665.00 putting it top of the FTSE 250 fallers Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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