Davey

The government has allocated an extra £25m starting in 2017-18 to so-called Pot 2 funding, which is mean for offshore wind and biomass projects.

The original £300m funding has now been increased to £325m for the projects, which will receive 15 year contracts after winning the auction.

Technologies such as onshore wind and solar that were earlier funded at £50m in the first year and £65m in following years will not receive new funding.

UK Energy and Climate Change Secretary Edward Davey said: "We are transforming the UK’s energy sector, dealing with a legacy of underinvestment to build a new generation of clean, secure power supplies that reduce our reliance on volatile foreign markets.

"Renewable electricity generation and investment have both more than doubled since 2010. We attracted a record breaking £10 billion worth of investment in 2014 and by making projects compete for support, we’re ensuring consumers get the best possible deal as well as a secure and clean power sector."

The government will confirm the budgets for next year’s auction this autumn, but £50m more has already been allocated for established technologies.

Additional funding is planned to be available for CfDs for renewables and carbon capture and storage in future years, increasing to more than £1bn in 2020/21.

Commenting on the extra funding, Renewable Energy Association policy analyst Frank Gordon said: "We welcome an increase in the CfD budget, and await with interest the outcome of the first allocation round.

"However, there remain concerns around CfD policy particularly for independent generators and other established and cost effective technologies such as solar and biomass which must be addressed by the next Government following the election."

Image: UK Energy and Climate Change Secretary Edward Davey. Photo: Courtesy of Business, Innovation and Skills Office.