The UK government has revealed the details of its revised Energy Bill this November but a decision on carbon emission targets will be delayed.
Energy companies will be allowed to charge households an extra £7.6 billion ($12.1 billion) to go towards low-carbon electricity infrastructure by 2020.
Chancellor George Osborne, who is in favour of gas-powered generation, has not enjoyed a smooth ride during this process as the Liberal Democrats wanted to see gas removed from the electricity system completely.
It has been reported that Osborne is adamant gas will help keep power bills low in the future however.
Professional and trade body RenewableUK welcomed this announcement as it feels it will provide the right level of financial support to allow the renewable energy sector to expand, generating thousands of jobs in the process.
‘The news that there is rock solid support across government for renewable energy provides the industry with exactly the kind of assurances we’ve been calling for. This blows the last few months of political infighting completely out of the water,’ says RenewableUK CEO Maria McCaffery.
“This is proof that the Treasury really does get that the renewable energy industry offers one of our best hopes for economic recovery. This will stimulate billions of pounds worth of investment in renewables, creating more than 88,000 jobs in wind, wave and tidal energy alone by 2021.
“The government is sending a clear message that 30% of our electricity will be from renewable sources by 2020. This will give investors the confidence they seek for the long-term. Those investors put £2.5 billion into the industry this year and this will now increase exponentially. It is full steam ahead, so let’s get on with it.’
Carbon emission targets for 2030 have been delayed until after the next general election in 2016.