£40bn Investment In Renewables Expected By 2020

£40bn of investments are expected in renewable electricity generation up to 2020, according to the government.

The news follows updated contract terms and strike prices published today.

Over 20GW of renewables capacity is currently operational in the UK. The government expects this to double by 2020 as a result of new reforms.

Energy makes up 58 per cent of the total infrastructure pipeline in Government’s National Infrastructure Plan.

Investment in renewables, new nuclear and gas would be required to replace 10-12 per cent of current power generating capacity, according to the government.

"The updated contract terms and strike prices will help to build a low-carbon energy mix to keep the lights on, reduce emissions and bring green jobs and growth to the UK," a statement from the Department of Energy and Climate Change said.

"The additional investment will generate enough clean power for 10m homes, and reduce carbon dioxide emissions by over 20m tonnes.

"Increasing the amount of home-grown renewable energy will boost energy security, reduce reliance on imported fossil fuels, and support up to 200,000 jobs by 2020."

Energy and Climate Change Secretary Edward Davey said: "This package will deliver record levels of investment in green energy by 2020. Our reforms are succeeding in attracting investors from around the world so Britain can replace our ageing power station and keep the lights on.

"Investors are queuing up to express their interest in these contracts. This shows that we are providing the certainty they need, our reforms are working and we are delivering ahead of schedule and to plan.

"With sixteen new major renewable projects progressing in our 'go early' stage we are delivering ahead of schedule and are able to begin the move to the worlds first low carbon electricity market faster than expected."

(IT/CD)