Renewable energy projects are to compete over a £200 million budget as part of the government's reforms to the electricity sector.

The funding is for the first allocation round for the new Contracts for Difference, which provide long-term certainty and reduce risk for investors. The government’s reforms to the electricity market will reduce emissions from the power sector much more cheaply than through existing policies – around 6% (£41) lower on the average domestic electricity bill up to 2030.

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Energy and Climate Change Secretary Mr Ed Davey said: "Our plan is powering growth and jobs as we build clean, secure electricity infrastructure for the future. By radically reforming the electricity markets, we’re making sure that decarbonising the power sector will come at the lowest possible cost to consumers.

"Average annual investment in renewables has doubled since 2010 - with a record breaking £8billion worth in 2013.

"These projects will create green jobs and green growth, reduce our reliance on foreign-controlled volatile energy markets and make sure billpayers get the best possible deal."

(CD/IT)