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Potential £750m investment for energy from renewable generators

The Cabinet Office has revealed plans for the Government Procurement Service (GPS), which oversees public buying of goods and services, to start proposing contracts to non-intermittent renewable energy producers such as biomass plants next year.

If the trial is successful, the GPS may spend as much as £750m on gas and power to renewables in the next five years.

The Cabinet Office is expecting to save taxpayers about £155m in 15 years. This is due to the GPS buying energy for 75 per cent of the public sector, enabling them to access better deals.

The GPS will offer 2 per cent of its energy demand worth £25m a year to renewable generators in contracts lasting as long as 25 years.

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