The Energy Bill had been the focus of an on-going debate between the Conservatives and the Liberal Democrats recently but Davey said “The decisions we’ve reached are true to the Coalition Agreement and we can have essential electricity market reforms up and running by 2014 as planned.”
If the reforms do indeed go ahead they will allow the government to meet the carbon reduction and renewable energy obligations, as well as supporting up to 250,000 jobs in the renewable energy industry. The changes will involve the creation of a Government company which will attempt to maintain confidence in low-carbon electricity projects, thus hoping to encourage investment.
Ed Davey also announced that market support for the low-carbon sector will begin at £7.6 billion – in line with current 2012 prices – a figure which is expected to rise to £9.8 billion in 2020, making solar power technologies a crucial element to meeting renewable-energy and carbon-reduction targets.
According to the British Photovoltaic Association, the government’s new Energy Bill “will help diversify our energy mix”. With sharp price hikes in the oil and gas markets – British Gas is to increase prices again in 2013, adding further to the average energy bill. Furthermore, it is expected that electricity from renewables will rise from the current level of 11% to 30% by 2020, and a significant part of this will be solar PV that creates clean electricity.
In November the government also officially opened the Green Investment Bank, a scheme which hopes to increase investment in renewable energies, including solar PV.
Gary Brandwood, Sales and Marketing Director at Renewables 4 Business said: “Renewable energy is increasingly powering U.K. businesses and the economy too. Knowing that the government’s fixed tariff ensures a minimum investment return will be a relief to those with solar PV systems, as oil and gas prices continue to rise indefinitely, causing energy insecurity and financial uncertainty for many people in the UK.”
For more information about the new Energy Bill, please contact Renewables 4 Business on 01925 764586 .