Its other recommendations include a new commitment to creating low carbon homes, and the creation of a new body called Energy for the North, which would oversee the strategy and take legal responsibility for cutting carbon emissions.
In a 164-page document crammed with 50 low-carbon policies and plans, the Government has planted the seeds for a new era of green economic growth which replicates the offshore wind model and offers major opportunities for United Kingdom plc.
"If it's serious about spreading growth across the country, while meeting decarbonisation goals, the government must take this issue seriously and give the North of England real powers to kickstart a local energy revolution".
The £2.5 billion of existing government spending includes up to £505 million from the BEIS's Energy Innovation Program, which aims to accelerate the commercialization of innovative clean energy technologies and progresses.
Ministers also said they wanted all fuel-poor homes to be upgraded to at least a "C" energy performance level by 2030, with as many homes as possible reaching the standard by 2035.
Scottish Renewables and the Renewable Energy Association (REA) have both welcomed the United Kingdom government's Clean Growth Strategy but expressed disappointment there is no commitment to allow onshore wind and solar to compete for price support with other renewables.
The UK Government has announced an ambitious new Clean Growth Strategy to drastically cut carbon emissions and combat climate change, including £557 million for the country's third renewable energy Contracts for Difference auction set for spring of 2019. "It's as big a change as the move from the age of steam to the age of oil and Britain is showing the way". It is particularly welcome that the low-carbon transition is seen as a cross-government priority as part of the Industrial Strategy.
Climate Change and Industry Minister Claire Perry said: "By focusing on clean growth, we can cut the cost of energy, drive economic prosperity, create high value jobs and improve our quality of life".
"The impact of the Paris agreement and the unstoppable global shift towards low carbon technologies gives the United Kingdom an unparalleled opportunity", added Climate Change and Industry Minister Claire Perry.
The support for offshore wind in the strategy was widely welcomed.
"It is now critical that business and the Government work together to ensure this strategy translates into action".