Britain announces plan to encourage the development of clean energy projects

The UK launched on Friday a plan that will make it easier for developers and investors to build clean energy project, which they hope will help them meet their climate targets as well as create jobs.

The UK has set a goal to decarbonise the power sector largely by 2030. This will reduce its dependence on gas-fired plants and increase its renewable energy capacity rapidly.

Last month, the National Energy System Operator said that a new system of connecting projects to the grid and a restructured planning process would be required to meet the target.

The Department for Energy Security and Net Zero said that "billions of pounds worth of clean energy projects are being held up by an overloaded planning system and a dysfunctional grid queue, which means renewables cannot be brought online."

The new plan will place onshore wind projects in England that are over 100 megawatts under the Nationally Important Infrastructure Project regime, which makes it easier to obtain planning permission.

The system will be changed for new projects that want to connect to the grid. Slow-moving projects or those in a stall will be removed to make way for more viable projects.

Contracts for Differences (CfDs) are used to encourage investment in renewable energy projects. They invite developers to bid for price guarantees backed by the government for electricity produced.

The government announced new plans on Friday that would expand these auctions to allow projects to receive funding before finalising their planning permission. This, it claimed, would enable more projects to be built.

(source: Reuters)