Government launch investigation into renewable energy generation
The Government has issued a call for evidence to assess and address barriers independent renewable generators may be experiencing.
Prior to raising debt to build their project, independent generators require long term contracts which guarantee that the power they generate will be purchased.
The Government is concerned as some generators are reporting a decline in terms they are being offered for these Power Purchase Agreements (PPAs) - which could result in a decline in renewable energy investment.
Over the next 10 years the Government needs to attract £100 billion of investment in low-carbon power generation to meet consumer demand, meet climate targets and make consumer bills more affordable.
The Government is also keen to diversify the electricity market with reduced barriers for new entrants, and an independent review would be an integral part of this.
Within the call for evidence the Government there are a number of high level options for what could be done to improve competition within the PPA market.
These responses will be used to develop the Government’s understanding of the PPA market, and also to refine proposals set out in the draft Energy Bill.
The call for evidence period will run from 5th July to 16th August 2012.
This was posted in Bdaily's Members' News section by Ruth Mitchell .
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