Renewable energy generators will be able to compete for guaranteed payments of more than £200 million a year from October, the Government has announced.
It is for the first allocation round for the new Contracts for Difference, which was approved by the European Commission yesterday.
The budget will be split into three groups – “more established technologies” like onshore wind, solar and energy from waste with combined heat and power (CHP), “less established technologies” like offshore wind and the third for biomass conversions.
A further £50 million will be auctioned next year and as much as £1 billion could be made available by 2021, according to DECC.
Energy Secretary Ed Davey said: “These projects will create green jobs and green growth, reduce our reliance on foreign-controlled volatile energy markets and make sure bill payers get the best possible deal.”