The Liberal Democrats have lost a key battle with the Conservatives over renewable energy.

Ed Davey, the LibDem Energy Secretary, will today announce a target to decarbonise energy production by 2030 will not be included in next week's Energy Bill.

There will be a clause which means ministers can introduce the measure after the next General Election.

The LibDems have long campaigned for such a target which they see as vital to the environment. But the Conservative Chancellor George Osborne is implacably opposed.

Mr Davey will say the Bill will allow ministers to give long term guarantees to investors about how much they will receive for electricity generation.

Ministers estimate that the move could attract £110 billion to the sector, which by 2020 could support as many as 250,000 jobs.

A LibDem source said the party would continue to campaign for the target, adding: "Industry needs to persuade the Conservatives". But Labour said it was "outrageous" that Mr Davey and Mr Osborne had abandoned their target.

Ed Miliband also warned householders face another decade of rising energy bills. Speaking at Whitelee wind farm in Renfrewshire, he said David Cameron could not guarantee cheaper bills, and tackling climate change would cost now to have cheaper renewable energy for future generations.