Matt Osborne, principal risk manager at energy consultancy Inenco comments:
“This announcement is positive news – it confirms that the UK is one of the world leaders in renewable generation, and that we are committed to carbon reduction and sustainable energy generation.
“Initially, the development of renewables depended on attractive subsidies, however, the cost of these technologies has been driven down, and new projects can be built with much lower subsidies, providing better value for money. The falling cost of PV and wind turbine technologies will encourage further capacity, and should provide pressure to further reduce subsidies going forward. This could potentially have an impact on energy bills, but not until the 2030s.
“While the increase in renewable generation is great news, it obviously presents certain challenges, which need to be addressed. Renewables inevitably bring intermittency, as, of course, our weather is so changeable, which in turn can also have an impact on price volatility.
“It’s also important to remember that alongside renewable electricity generation, the UK also has targets to decarbonise heating and transport – potentially having an impact on the grid.
“However, new technology such as battery storage should help to smooth these effects, as does Demand Side Response (DSR) – which is likely to become widely used in homes as well as in businesses. And in the future, things like artificial intelligence and the Internet of Things (IoT) will enable consumers to use energy more effectively and efficiently, which should help to balance supply and demand.”