The cash, part of the additional £4 billion of EIB lending to support UK energy projects announced in the UK Budget, will help kick start onshore wind projects, particularly small and mid-sized wind farms, hit by the credit crunch. “The development of the UK’s wind energy capacity will support the European Union’s and national targets for renewable energy generation. This initiative underlines the EIB’s long involvement, as the EU’s financing arm, in the UK’s energy sector and reinforces efforts to reduce the impact of climate change”, stated EIB Vice President, Simon Brooks.
The three banks – RBS, Lloyds and BNP Paribas Fortis – have been teamed up with the EIB by the UK’s Department of Energy and Climate Change (DECC) and HM Treasury, following the announcement in April’s Budget Statement that the Government wanted to channel more EIB lending into UK renewables.
Firms can now also apply for DECC cash to develop offshore wind technology, with up to £10 million in grants being earmarked as part of the £120 million announced in the renewable energy strategy last week to support offshore wind. This is the second round of cash for development of offshore wind technology. Energy and Climate Change Secretary Ed Miliband said: “Earlier this month we laid out a transition plan to a low carbon economy that included a massive expansion of green wind energy. The resources we are announcing back up our plans with clear actions to ensure we deliver.”
DECC has also confirmed that, subject to agreement on suitable grant offer conditions, it also intends to make an award under the first round of this programme for Vestas Technology UK Ltd’s research and development centre on the Isle of Wight. This proposed award – more than £6 million - would include over £3 million of funding from the South East England Development Agency (SEEDA).
“The money for the development of offshore wind manufacturing will help us generate green jobs on top of our success as the leading country in the world for the generation of offshore wind,” declared Miliband. “Alongside these proposals, we are reforming planning laws, finding new ways of working with local communities and are determined to persuade people that we need a significant increase in onshore wind as part of the UK's future energy mix”, he added.
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