Additional investments of around £40 billion are expected in renewable electricity generation projects up to 2020, following updated contract terms and strike prices published today and wider reforms to the electricity market.

Sixteen renewable generation projects also reached the next stage of Final Investment Decision Enabling for Renewables (FIDeR) process today, which could be supported either through investment contracts or the enduring Contracts for Difference (CfD) regime.

There is currently over 20GW of renewables capacity operational in the UK – a figure that could double by 2020 as a result of the Government’s reforms. We have a very healthy pipeline in key technologies, with a total of almost 11GW of offshore and onshore wind with planning consent and awaiting construction. And if all the 8GW of projects which are proceeding under FIDeR are built through investment contracts or under the enduring CfD regime they could contribute around 30% of the new renewables generation we need by 2020.

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The UK is now on track to meet that target, and will have doubled the amount of electricity generated from renewables from 15 per cent to over 30 per cent by 2020.

The updated contract terms and strike prices will help to build a low-carbon energy mix to keep the lights on, reduce emissions and bring green jobs and growth to the UK.

The additional investment will generate enough clean power for 10 million homes, and reduce carbon dioxide emissions by over 20 million tonnes.

Energy and Climate Change Secretary Edward Davey said: "This package will deliver record levels of investment in green energy by 2020. Our reforms are succeeding in attracting investors from around the world so Britain can replace our ageing power station and keep the lights on.

"Investors are queuing up to express their interest in these contracts. This shows that we are providing the certainty they need, our reforms are working and we are delivering ahead of schedule and to plan."

(CD/IT)