New incentives for green electricity to avoid blackouts

Whitehall has unveiled new plans to encourage the use of renewable electricity to avoid blackouts.

The changes will give more financial incentives to generation companies using greener methods instead of burning fossil fuels.

The capacity market ensures there is enough to safeguard against blackouts if intermittent sources, including some renewables, stop working.

Auctions of electricity ensure there is enough supply to meet peak electricity demand. The Business Department plans new contracts that will incentivise the use of low-carbon generation capacity in the market.

Energy companies will also face tougher penalties if they fail to deliver the required supply.