The new UK Low Carbon Strategy released this week shows offshore wind and marine energy are the UK Governments’ favoured renewable energy technologies when it comes to financial support.
The Low Carbon Industrial Strategy is the UK Government’s first Low Carbon Strategy document. The document includes details of how the UK budget is to be allocated to renewable energy. £405 million (US $668m) has been allocated to renewable energy technologies with offshore wind and wave & tidal energy being the technologies set to see the biggest incentives.
The Government wants to spend £120 (US $198) million on offshore wind energy manufacturing together with investment in the development of – not yet commercially viable offshore wind technologies e.g. floating turbines by supporting demonstration trials. Testing facilities are envisaged in UK hostile waters . The low carbon strategy was released in conjunction with The UK Renewable Energy Strategy.
The Government recognises that there are financing issues and have set up the UK Innovation Investment Fund, to incentivise businesses that develop new technology through providing equity finance. The stimulus will provide £150m (US $247m) support to new start-ups and also aims to bring in private sector investment of up to £1 billion (US $1.65bn) over the next 10 years.
UK energy regulator Ofgem is proposing to step up financial incentives for smart grid via the Innovation Funding Incentive (IFI). The UK government wants to spend £6 million (US $8 million) on smart gird development trials.
