Government provides draft regulations for green energy investors

The UK Government has decided to shed some light on its plans for supporting low-carbon energy investors by revealing draft terms for the contracts it will offer.

According to a news report on the matter, the new contract terms revealed that the government plans to introduce a new support mechanism via long-term contracts for difference (CfD), designed to help incentivise up to £110 billion of private sector investment to 2020 to renew the UK's energy infrastructure.

Government officials revealed the fact that CFD are vital to give investors in low-carbon generation the confidence they need to pay the up-front costs of major new energy infrastructure project. Using this official information, the industry will be able to provide feedback on the draft contract terms over the summer and these views will be considered before Government publishes final terms which is expected in December 2013.

Energy Minister Michael Fallon, said: "No other sector is equal in scale to the British power market, in terms of the opportunity that it offers to investors, and the scale of the infrastructure challenge. The key contract terms have been published in detail to provide the energy sector and investment community with further certainty, so they can get on and invest."

"When compared to the existing system of support, the Renewables Obligation, this new support mechanism will make it cheaper to deliver low-carbon generation by around £5 billion up to 2030" Mr. Fallon concluded.