United Kingdom to conduct next clean energy auctions worth GBP557m in 2019


"The importance of positive government messaging on the low carbon agenda for investment confidence is often overlooked and today's clear cross-government commitment to deliver on the UK's climate targets will be welcomed by businesses", said Nick Molho, executive director of the Aldersgate Group.

"The impact of the Paris agreement and the unstoppable global shift towards low carbon technologies gives the United Kingdom an unparalleled opportunity", added Climate Change and Industry Minister Claire Perry.

They said "the Clean Growth Strategy is a positive signal that the Government understand the significant opportunities for the United Kingdom that moving to a low carbon economy can bring".

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The policies in the plan put the United Kingdom on track to meet the fourth carbon budget, and "reduce significantly" the current shortfall against the fifth carbon budget. As part of the announcement, the government confirmed up to £557 million ($738.91 million) for the next Contracts for Difference (CfD) auction, which is planned for the spring of 2019.

The £2.5 billion of existing government spending includes up to £505 million from the BEIS's Energy Innovation Program, which aims to accelerate the commercialization of innovative clean energy technologies and progresses. The offshore wind industry has helped create thousands of highly skilled jobs at factories in Hull and the Isle of Wight, and a burgeoning local supply chain across the country.

As widely expected, the plan includes significant focus on cutting greenhouse gases from Britain's built environment, pledging to invest £3.6bn in upgrading around a million homes through the Energy Company Obligation (ECO) scheme. This wonderful cost reduction is a reminder of what innovative industry can deliver when backed by competitive auctions. Funding is also earmarked for low emission taxis and buses, as well as walking and cycling.

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"Recent announcements in the offshore wind and vehicle manufacturing industries have highlighted how a clear vision, supported by detailed policies, enable the private sector to drive innovation, cut the costs of clean technologies and invest in United Kingdom jobs and supply chains".

The highly anticipated strategy comes nine months after it was promised, having been beset by delays from political events such as last year's European Union membership referendum, subsequent Brexit negotiations and June's General Election.

The Clean Growth Strategy will look across the whole of the economy and the country. The UK Government has much more work to do in putting forward credible policies to close a carbon gap of almost 10% by 2032. However, much of the Carbon dioxide reduction so far has been secured by phasing out coal-fired power plants, and as such facilities fall off the United Kingdom grid more new policies are needed to ensure continued decarbonisation into the 2020s and beyond.

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