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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.

A number of other areas have already received additional or new funding in light of the results of the spending review:

Solar photo-voltaics

Funding under the Major PV Demonstration Programme has recently been increased by £6 million, taking total funding to £31 million. Visit the Energy Saving Trust's Solar PV Grants website for more details.

The Clear Skies Programme

This programme provides grants for a number of technologies for domestic and community schemes. It has had its funding increased by £2.5 million to £12.5 million. Visit Clear Skies website  for more details.