Ed Miliband will commission hundreds more wind turbines and solar panels after launching a subsidy scheme to companies building renewable energy.
A new round of annual grants for developers opens on Monday that will guarantee them a minimum price for their power, inflation-linked and baked in for up to 20 years.
The process, known formally as the eighth renewables Allocation Round (AR8), is designed to persuade companies to build giant wind turbines and thousands of acres of solar panels – with the subsidy costs added to energy bills.
The move could be among Mr Miliband’s last act as Energy Secretary as he races to cement his legacy of decarbonising the UK power system.
Andy Burnham, the presumptive prime minister, could potentially move Mr Miliband to a new job when he takes power later this month, ending his tenure as Energy Secretary.
The AR8 auction will mean securing a massive amount of new wind and solar generation despite criticism from the Conservatives and Reform that the subsidies should be scrapped.
However, the Department for Energy Security and Net Zero (DESNZ) made clear there would be no let-up on the expansion of renewables.
Chris Stark, from the DESNZ, recently told industry journal reNews that AR8 was Mr Miliband’s last chance to secure large-scale renewables capacity before the end of the decade.
“In terms of our ability to bring on large-scale stuff by 2030 then AR8 is the last roll of the dice.”
He predicted it would be as big or bigger than the last round, AR7, announced in January which saw offshore wind developers awarded an estimated £1.8bn in yearly subsidies.
“I think AR8 has the prospect of being just as big as AR7, and I guess we are going to go big on it.”
Under the auction system, the Government invites developers to bid for contracts, putting forward the minimum price they need for their electricity.
The price for power from most renewables is typically well above the market price so the difference is made up by subsidies paid for from a levy on all energy bills.
Each developer gets a Contract for Difference (CfD) guaranteeing such payments for up to two decades.
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