Scheme could see up to £750m directed to support energy schemes
The government is set to use its own buying power to unlock up to 150 stalled energy construction projects.
Yesterday, the Cabinet Office launched a pilot investment scheme, which if successful will begin to jump start the 150 stalled biomass and energy from waste projects across the county.
Under the scheme, called Energy for Growth, the Government Procurement Service (GPS) will ask energy providers to diversify their generating sources into energy from waste and biomass in return for a guarantee to buy a set proportion of their capacity from those generators for the next 25 years.
Currently the GPS buys 3% of the UK’s total energy.
The pilot scheme will see £25m set aside to fund schemes but Energy for Growth could eventually see the GPS use £750m of its £1.5bn energy portfolio on such deals.
Cabinet minister Francis Maude said he was using the governments buying “clout” to “change the market for the good of the country”.
“The UK is in a global race and that’s why we are working to attract investment into our energy industry to create jobs, develop technology and secure clean and diverse supplies for the future,” he added.