The UK government has set the initial budget for the Contracts For Difference budget, which will be £205 million for the coming year.
The support regime funding will come into play later this year, with the first round of funding coming in October, providing long term clarity whilst reducing risk for investors.
Renewable energy projects will bid competitively for the contracts, with the scheme looking to ensure that new, clean electricity generation will be built at the lowest possible cost to energy consumers.
The initial funding round will support £50 million of established technologies such as onshore wind, solar PV and 5MW-plus hydro. A further £155 million of funding will invested into less established forms of renewables, such as offshore wind and marine and island wind.
The total spend by 2021 could reach as high as £1 billion, showing a dedication to funding renewables projects for the foreseeable future and beyond.