The UK Government will invest up to £1bn in the Green Investment Bank from the sale of infrastructure-related assets, and seeks to match this with at least £1bn of private sector investment.
A consultation on the establishment of the Green Investment Bank will be published this summer by Infrastructure UK.
Other measures affecting renewable energy and energy in general in the Budget include:
- Launching UK Finance for Growth to streamline £4bn of existing financial support for small and medium-sized businesses, which will include support encouraging businesses to commercialize low-carbon and renewable energy technologies;
- £60 million for the development of UK port sites to support offshore wind turbine manufacturers looking to locate new facilities in the UK;
- Halving the rate of company car tax for ultra-low carbon cars;
- A commitment to reduce Government departments' carbon emissions by at least 30% by 2020; and
- A commitment to reform the energy market to provide clean, secure and affordable energy in the long-term.
The competition of up to £60m of funds to develop sites will support manufacturing for the offshore wind industry. Bids are expected to include contributions from local supply chain partners.
The Department of Energy and Climate Change (DECC) says the competition will help the UK secure major operations in offshore wind manufacture and assembly – something that could create hundreds of direct jobs with potentially thousands more in the supply chain.
The UK government says the current energy market will be fine up to 2020, but beyond that, pressures could be felt.