The Government released last week that it’s going to change its approach to energy and will adapt a new model that will help boost renewable generators as well as helping create more contract opportunities for domestic businesses.
This new model the ‘Energy for Growth’ scheme will be piloted in the new year, the plan is for the Government to tender for generators to supply 2% of the energy bought by the Government Procurement Services (GPS) which is worth up to £25 million each year.
The Government Procurement Services currently buys energy for 75% of the public sector so if this pilot is successful it will mean that the GPS will be able to diversify up to half if its entire energy portfolio over the next five years.
Power purchase agreements will be much easier to come by and will be offered to generators enabling them to attract investment from banks. And probably the best news… the tax payer will save around £155 million over the next 15 years.
The Energy for Growth scheme aims to provide a real boost for the green energy sector through Government investment, creating more jobs, opportunities and projects as well as getting some of the 150 stalled renewable energy projects up and running again in this economic climate.
So it seems like a win-win situation for everyone involved. And with solar energy companies providing more affordable systems it will hopefully push gas and electricity suppliers to lower their prices in order to compete… so watch this space.
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