The government’s electricity market reform moved a step closer today when secondary legislation came into force.
The Low Carbon Contracts Company, which will pay power generators the new form of subsidy for investing in renewable sources of energy, became operational.
Under the much-heralded new system, renewable energy providers will sign contracts for difference, securing them payments from the LCCC to cover the gap between the average price of electricity and an agreed strike price.
The first such contracts will be awarded this autumn.
The government believes £100bn of investment in the energy sector could be needed in the next five years alone.