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.