Britain increases renewable subsidy budget to 300 million pounds

LONDON (Reuters) - Britain has increased its budget to subsidise electricity projects that use renewable sources by 95 million pounds to 300 million pounds, the Department of Energy and Climate Change (DECC) said on Thursday. Britain plans to reduce its greenhouse gas emissions by at least 80 percent from a 1990 baseline by 2050, and is handing out subsidies as an incentive to power generators to shift from fossil fuels to low carbon power generation technologies. "Renewable electricity projects will compete for 300 million pounds in support this autumn – an increase of 95 million pounds from the indicative budget published in July," DECC said. "We are transforming the UK's energy sector, dealing with a legacy of underinvestment to build a new generation of clean, secure power supplies that reduce our reliance on volatile foreign markets," said Energy and Climate Change Secretary Ed Davey. DECC said that low-carbon electricity projects will compete at auction for the subsidies. "Established technologies, such as onshore wind and solar, will compete for up to 65 million pounds in support, reflecting the fact that these technologies are already more competitive," DECC said. "Less established technologies, such as offshore wind and marine, will share in up to 235 million pounds, ...helping these technologies become as competitive as the more established low carbon generation sources," it added. The projects that win the auction will receive 15 year contracts, DECC said. (Reporting by Henning Gloystein, editing by William Hardy)