Ministers confirmed a commitment made last year to phase out the use of coal-fired power stations by the middle of the next decade, in a consultation on how best to implement the move.
Analysis found there would be no risk to the security of electricity supplies from cutting out coal, which will save 124 million tonnes of carbon dioxide between 2016 and 2030, the consultation said.
The Government said it wants to give investors certainty over replacement capacity such as gas power, which is a fossil fuel but produces lower emissions than coal.
It also confirmed its commitment to spend £730 million a year on renewable electricity projects this parliament and announced a new auction of subsidy contracts worth £290 million a year.
The funding will result in enough renewable power from sources such as offshore wind to power a million homes and reduce carbon emissions by around 2.5 million tonnes a year from 2021/2022 onwards, ministers said.
Business and Energy Secretary Greg Clark said: “We’re sending a clear signal that Britain is one of the best places in the world to invest in clean, flexible energy as we continue to upgrade our energy infrastructure.
“This is a key part of our upcoming industrial strategy, which will provide companies with the further support they need to innovate as we build a diverse energy system fit for the 21st century that is reliable while keeping bills down for our families and businesses.”