Renewable energy to cost £600m

Electricity bills are set to rise by around £600m a year after the Government yesterday gave the go-ahead for a major expansion of renewable energy.

Under the Renewables Obligation announced by the Energy Minister Brian Wilson, 10 per cent of Britain's electricity will be generated from sources such as wind, hydro and vegetable waste by 2010.

The scheme, expected to begin next year, will require electricity suppliers to buy special "green" certificates showing they are using renewable energy. They can then pass the cost on to consumers.

The £1bn renewables programme will be met largely through an expansion in offshore wind farms like the one pictured left in Copenhagen harbour, which began production last December. Electricity produced from waste incineration will not be eligible but biomass stations which generate power from crops will qualify.