Electricity sector 'to receive private sector boost'

23 December 2013

Posted by Michelle Devonshire

The electricity sector is set to benefit from significant private sector investment thanks to the publication of the Electricity Market Reform Delivery Plan.

Up to £110 billion is expected to flow into the industry as the government seeks to secure the long-term future of the UK's electricity supply. Since 2010, over £31 billion of investment has been announced in renewable energy schemes and this latest fillip will see this figure more than double by the end of this decade.

It is hoped enough power for ten million homes will be generated, while carbon emissions look set to be reduced by 20 million tonnes. Around one million jobs will also be created, 200,000 of which will be in the renewable sector.

Energy minister Ed Davey is delighted with the move, as he thinks it sends a "clear signal to investors and industry" that Britain is "one of the most attractive countries in the world to invest in energy generation".

"We are now able to build on the measures already in place to deliver cleaner energy, affordable bills, energy security and the creation of thousands of skilled green jobs across the UK," he added.

On top of the new delivery plan, a series of other announcements have been made, including a revised version of Contracts for Difference. The changes to the agreement support the ability of developers to bring forward investment.

The government is also looking in to whether or not it should introduce further competition for more established low carbon technologies, with a final decision expected in early 2014. So far, ten projects have been told they are provisionally affordable enough, yet contracts will not be awarded for a few months.

These include four offshore wind projects, two onshore schemes, three biomass conversions and a dedicated biomass facility with combined heat and power.

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