OVO will invest £1 million to support new solar and wind farms through power purchase agreements (PPAs).
The funding will specifically be focused on supporting subsidy-free Renewable Energy Guarantees of Origins (REGOs), offering an above market price for the electricity generated by small-scale and independent solar and wind farms.
The retail energy supplier’s initiative designed to incentivise new investments in renewable assets in the UK for projects that have not secured any government subsidy or industry scheme.
Raman Bhatia, CEO of OVO, said: “Going forward, we're open to working with government and regulators to develop the Retail Energy Market, and the Green Certificate Markets, to ensure that they work effectively to encourage investment in new renewable generation here in the UK, supporting the industry and moving the UK further away from reliance on fossil fuels.”
OVO expects to have its first subsidy free REGO PPA contracts signed by the end of the year.