New UK Prime Minister Liz Truss has confirmed her government will introduce new fixed price contracts for existing renewables generators.
Truss said today wind and solar projects will be able to move to Contracts for Difference in a bid to split green energy prices from soaring gas rates.
A new Energy Supply Taskforce, led by Madelaine McTernan who headed up the UK’s successful Vaccine Taskforce, has begun negotiations with domestic and international suppliers to agree long-term contracts that reduce the price they charge for energy and increase the security of its supply.
The Taskforce and Department for Business, Energy and Industrial Strategy will negotiate with renewable producers to reduce the prices they charge as well.
Responding to the Prime Minister’s landmark announcements on energy policy in the House of Commons today, RenewableUK CEO Dan McGrail said: “Everyone will benefit from the new Prime Minister’s clear commitment to speed up the roll-out of renewables.
“We’re already working closely with Ministers and our member companies on proposals to break the link between the unaffordable cost of gas and the price of electricity.
“Renewable projects which have gone live since 2015 are already on these ultra-low cost contracts which actually pay money back to consumers.
“A new scheme would see older renewable energy projects moving onto new fixed-price contracts, and this would be open to include as many generators as possible.”
Truss, whose new government has also confirmed green levies will be temporarily suspended, said regulatory structures have “failed” given there is a price cap for retail but not for wholesale power.
“Schemes previously funded by green levies will also continue to be funded by the Government during this two year period to ensure the UK’s investment in home-grown, secure renewable technologies continues,” said the government.
Truss said energy policy has not focused on securing supply over the last decade.
She added the government will drive forward the acceleration of new sources of energy supply from wind and solar.
She added that the government will launch two energy reviews.
One will focus on looking at supply and affordability in the long term.
A second will review the government’s plan to deliver net zero by 2050 “in a way that is pro-business and affordable”, said Truss.
BEIS Secretary Jacob Rees-Mogg will meanwhile set out a plan within two months to make the UK a net energy exporter by 2040.
The measures are all part of a wider response outlined by the government to deal with the energy crisis, including a capping of electricity bills.
Truss also confirmed today that London will lift a moratorium on fracking for gas, launch a new oil and gas licensing round in the North Sea and continue support for nuclear expansion