Renewables funding package 'too low to spur investment in UK' - The Times

Renewables funding package ‘too low to spur investment in UK’

A £205 million annual funding package announced yesterday for the next batch of renewable power projects will be insufficient to spur required investment, the government has been told.

Proposed wind, solar, tidal and geothermal electricity projects are expected to compete in this year’s auction for contracts that guarantee them a fixed price for electricity.

When the market price is lower, consumers pay subsidies to top up the difference and when the market price is higher, developers pay back the difference.

The £205 million budget is the government’s estimate of the maximum subsidies that will be required for the contracts in any year based on its electricity price forecasts.

Renewable UK, the industry body, said: “The budget and parameters set for this year’s auction are too