The Energy Bill has been granted Royal Assent paving the way for a £110bn investment in the UK’s power infrastructure.
The Bill, which has now officially passed into law, contains incentives designed to encourage new investment in the UK’s energy sector to meet the twin goals of keeping the lights on and delivering the transition to a low-carbon economy, while keeping the costs to consumers as low as possible.
Following the announcement, the Department for Energy and Climate Change will tomorrow unveil its delivery plan for the reforms, including details on which projects will be prioritised for early support under the new Contract for Difference support mechanism that guarantees renewable energy producers a minimum electricity price.
Maria McCaffery, chief executive of industry body RenewableUK, said: “This has been a long and sometimes arduous process for everyone involved but we recognise that the Energy Bill has now become legislation and the framework for development beyond 2017 is known.
“There are issues still outstanding to be resolved through secondary legislation, and in the face of very challenging strike prices there is still much work to be done between government and industry to ensure that obstacles are removed and much needed clean and domestic sources of energy can come forward over the next decade.
“Developing our domestic energy sources protects us from fluctuating fossil fuel prices, and could create tens of thousands of highly-skilled jobs over the next decade.”