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Capital Grants Scheme

BERR’s Capital Grants Scheme funds a number of demonstration projects that help reduce the costs and risks involved in such developments, and to maximise the contribution to the Government’s target for renewable electricity supply within the UK.

• Offshore wind capital grants scheme. (1020KB)

A significant amount of funding for capital grants has already been allocated for:

Offshore wind

Three rounds of offshore wind grants totalling £97 million have been allocated to 11 projects. The aim was to stimulate early development of a significant number of offshore wind farms The projects are critical in promoting the necessary learning (in turbine maintenance, installation, financing, wind characteristics, contracting etc) and supply chain development which will allow the Round 2 offshore wind projects (which will be major contributors to targets to reduce carbon emissions and supply 7% of total UK electricity demand) to go ahead.

Five projects with a combined capacity of 390MW are complete and operating – North Hoyle, Scroby Sands, Kentish Flats, Barrow and Burbo Bank (funded by the Big Lottery Fund).

Construction is underway at a further five projects (Robin Rigg x 2, Lynn Offshore, Inner Dowsing and Rhyl Flats) and construction at Gunfleet Sands will start in 2008.

The scheme is now closed.

Biomass

Approximately £66 million has been provided to help encourage the efficient use of biomass, particularly energy crops, for energy production by stimulating the early deployment of biomass-fuelled heat and electricity-generation projects. Of this, the New Opportunities Fund provided approximately £33 million for energy crops power generation and around £3 million for small-scale biomass/combined heat and power projects.

The Government’s recent spending review brought total funding for new and renewable energy to approximately £500 million from 2002 to 2008. Following the review, BERR is currently analysing the case for further funding of offshore wind and biomass.

Other areas receiving funding

BERR provides funding through the Low Carbon Buildings Programme (LCBP), which is our £86 million grant programme launched in April 2006. The LCBP will run until 2009, and sets out to help with the upfront costs of installing microgeneration technologies - including solar technologies, heat pumps, micro-wind turbines, micro-hydro systems and biomass boilers. The programme aims to use the available funds to help achieve economies of scale, demonstrate the potential of combining energy efficiency measures with microgeneration in a range of buildings, building a sustainable market in the longer term.

Low Carbon Buildings Programme Phase 1 provides grants to householders.

Low Carbon Buildings Programme Phase 2 provides grants to community groups, public sector organisations and charitable bodies.

LCBP Phase 1 has also provided grants to community groups, businesses, public sector organisations and charitable bodies. Although these funding streams are now closed to new applicants, information on the projects that have been awarded grants is available through the website.

BERR have also provided funding through other capital grant programmes to support the development of the microgeneration industry since 2002. This includes the Clear Skies and Solar PV Major Demonstration Programmes that, prior to closing in 2006, have provided £36 million in Government funding to over 8,500 successfully completed microgeneration installations on domestic, community, public, private and non-profit sector buildings.