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Released June 22, 2015 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The U.K. government has granted a brief stay of execution on plans to cut subsidies for onshore wind projects.
The Conservative-led government, which won a majority in Parliament in May's general election, had pledged to end financing for onshore windfarms. It was expected that the government would begin consultations on its onshore wind plans with Scotland and other relevant green energy institutions weeks ago, but so far it has announced nothing.
The industry is anxiously waiting to see if the government will stop the Renewable Obligation (RO) support scheme in 2016, a year earlier than originally planned. If so, hundreds of millions of pounds worth of onshore projects may be cancelled.
Industry observers have attributed the delay to the government's desire to avoid a costly legal clash with renewable energy companies--and with Scotland, where most of the U.K.'s existing onshore windfarms and future onshore projects are located.
Before the election, the Conservative Party claimed that it "will halt the spread of onshore windfarms," arguing that they often fail to win public support and are unable by themselves to provide the firm capacity that a stable energy system requires. For additional information, see April 20, 2015, article - Onshore Wind Faces U.K. Block.
Amber Rudd, the energy secretary, told news media last week that the Department of Energy and Climate Change (DECC) had started the consultation process with Scotland.
"Our manifesto said that we would be removing subsidies for onshore wind, and we will be acting on that manifesto pledge," she said. "We also said that we will be consulting with the devolved administrations, a process I have begun, and I will continue to do that until we have arrived at a firm policy."
A spokesperson for DECC confirmed: "We are driving forward plans to end new public subsidy for onshore windfarms. We will shortly be publishing our plans to reform the Renewables Obligation and Feed-in-Tariff scheme to implement this commitment. With the cost of supplying onshore wind falling, government subsidy is no longer appropriate."
Maf Smith, deputy chief executive of wind industry body Renewable UK, warned: "The industry will fight against any attempts to bring in drastic and unfair changes, utilizing the full range of options open, including legal means if appropriate."
Energy utility ScottishPower Renewables (SPR) (Glasgow, Scotland), part of energy giant Iberdrola S.A. (MCE:IBE) (Bilbao, Spain), opposes subsidy cuts.
Keith Anderson, chief executive officer of SPR, told news media: "Onshore wind is clearly still the most cost-effective large-scale way of deploying renewable technology in the U.K. Economically, you would therefore question, why in God's name would you want to bring that to a premature halt? Our calculations are that if you prematurely bring onshore wind, to a halt you will end up costing consumers £2 billion to £3 billion. You will end up having to deploy offshore wind or other more expensive technologies".
Whitelee, the U.K's largest onshore windfarm, is located on Eaglesham Moor just outside Glasgow in Scotland. With 215 turbines, it generates up to 539 megawatts, enough for approximately 300,000 homes.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
The Conservative-led government, which won a majority in Parliament in May's general election, had pledged to end financing for onshore windfarms. It was expected that the government would begin consultations on its onshore wind plans with Scotland and other relevant green energy institutions weeks ago, but so far it has announced nothing.
The industry is anxiously waiting to see if the government will stop the Renewable Obligation (RO) support scheme in 2016, a year earlier than originally planned. If so, hundreds of millions of pounds worth of onshore projects may be cancelled.
Industry observers have attributed the delay to the government's desire to avoid a costly legal clash with renewable energy companies--and with Scotland, where most of the U.K.'s existing onshore windfarms and future onshore projects are located.
Before the election, the Conservative Party claimed that it "will halt the spread of onshore windfarms," arguing that they often fail to win public support and are unable by themselves to provide the firm capacity that a stable energy system requires. For additional information, see April 20, 2015, article - Onshore Wind Faces U.K. Block.
Amber Rudd, the energy secretary, told news media last week that the Department of Energy and Climate Change (DECC) had started the consultation process with Scotland.
"Our manifesto said that we would be removing subsidies for onshore wind, and we will be acting on that manifesto pledge," she said. "We also said that we will be consulting with the devolved administrations, a process I have begun, and I will continue to do that until we have arrived at a firm policy."
A spokesperson for DECC confirmed: "We are driving forward plans to end new public subsidy for onshore windfarms. We will shortly be publishing our plans to reform the Renewables Obligation and Feed-in-Tariff scheme to implement this commitment. With the cost of supplying onshore wind falling, government subsidy is no longer appropriate."
Maf Smith, deputy chief executive of wind industry body Renewable UK, warned: "The industry will fight against any attempts to bring in drastic and unfair changes, utilizing the full range of options open, including legal means if appropriate."
Energy utility ScottishPower Renewables (SPR) (Glasgow, Scotland), part of energy giant Iberdrola S.A. (MCE:IBE) (Bilbao, Spain), opposes subsidy cuts.
Keith Anderson, chief executive officer of SPR, told news media: "Onshore wind is clearly still the most cost-effective large-scale way of deploying renewable technology in the U.K. Economically, you would therefore question, why in God's name would you want to bring that to a premature halt? Our calculations are that if you prematurely bring onshore wind, to a halt you will end up costing consumers £2 billion to £3 billion. You will end up having to deploy offshore wind or other more expensive technologies".
Whitelee, the U.K's largest onshore windfarm, is located on Eaglesham Moor just outside Glasgow in Scotland. With 215 turbines, it generates up to 539 megawatts, enough for approximately 300,000 homes.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
