Renewable energy projects to push up bills

23rd April 2014
Renewable energy projects to push up bills

Consumers have been warned their bills could rise as a result of a series of renewable energy projects that the government has authorised, which could cost as much as £1 billion in subsidies.

However, energy secretary Ed Davey has suggested that buying energy-efficient products could be one way to offset this projected two per cent hike. 

It is thought these eight deals, five of which are offshore wind farms, will help to power up three million homes, create 8,500 jobs and attract £12 billion in private investment.

However, a two per cent increase in consumers' bills is expected as a result by 2020, by which time it is hoped as much as 30 per cent of energy will be renewable. By this year, these projects alone will provide five per cent of the UK's electricity supply. 

The offshore wind farms will be based in Outer Moray Firth, Liverpool Bay, Dudgeon, Hornsea and Walney. The other projects are coal to biomass conversions in Selby and Ashington, and a dedicated biomass plant with combined heat and power in Teesside.

Mr Davey said: "These contracts for major renewable electricity projects mark a new stage in Britain's green energy investment boom. By themselves, they will bring green jobs and growth across the UK." 

Speaking to the Today programme, he said: "You've got, for example, energy efficiency, product standards, which are all reducing the amounts of energy that people need and therefore cutting their bills."

He added that, while ostensibly these contracts may be responsible for an increase in monthly outgoings, it was important to look at the bigger picture of how secure and clean energy was being produced.  

The government hopes these projects will offer a secure supply of electricity that is affordable, while also bolstering skilled jobs, growth, supply chains and business nationwide. 

Posted by The EnerGenie

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