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Speaking at the launch of the new strategy, which sets out how the U.K. plans to meet its target of generating 15 percent of energy from renewable sources by 2020, Prime Minister Gordon Brown said that the "green revolution" would result in a tenfold increase in the U.K.'s current renewable energy capacity.
Business Secretary John Hutton added that such a large-scale increase in renewables would not only help cut U.K. carbon emissions by 20 million tonnes but would also bolster U.K. competitiveness and lead to the creation of 160,000 new jobs.
"We will… maximize the economic benefit for the U.K. by creating a new generation of green collar jobs and making the most of our strengths as one of the world's largest manufacturing economies; a world-class center of energy expertise and a leading location for inward investment," he said.
Central to the new strategy, which is subject to consultation until September 26, is a huge extension of renewable energy incentives designed to encourage up to £100 billion in investment from the private sector.
Under the proposals, the existing Renewables Obligation (RO) incentive scheme for large-scale energy projects would be increased and its end date would be extended. Renewable energy firms had been lobbying for the change, claiming that if the government is to meet its target of building 4,000 offshore and 3,000 onshore wind turbines investors need to have confidence that incentives will continue beyond the scheduled end date of 2027.
The strategy also outlines plans for a huge overhaul of the financial incentives offered to households and businesses that install onsite renewable energy technologies, including the possible introduction of a feed-in tariff that would guarantee them an above market price for any power they sell back to the grid.
Similarly, it details plans for a new incentive scheme to encourage a significant increase in the use of renewable heat systems for both homes and other buildings.
Speaking to BusinessGreen.com, Andy Lee, chairman of the Renewable Energy Association and manager of electronics giant Sharp's solar division, said that the changes heralded a " new maturity" in the government's approach to renewables. "The proposals appear to cover every aspect and they are taking a much wider view of the issues than has been the case in the past," he said. " The proposal for a simple feed-in tariff for onsite technologies is very welcome."
