黑洞社区

The Department of Energy and Climate Change has decided to keep subsidies for onshore wind farms at 90% of current levels despite pressure from the Treasury to make deeper cuts.

Liberal Democrat energy secretary Ed Davey said the results of a review of the Renewable Obligations scheme, the government鈥檚 main subsidy for supporting large scale low carbon electricity generation, would stimulate up to 拢25bn of new investment in the UK by 2017.

However, there will be a further review of costs in the onshore wind sector over the autumn.

In this Wednesday鈥檚 announcement DECC also decided to keep support for large scale solar farms at its current level although this will be reviewed later this year.

The rate of support for offshore wind will decrease more slowly than had been expected to 1.8ROCs from 2016 rather than 1.5ROCs from 2014.

Davey said: 鈥淭he support we鈥檙e setting out today will unlock investment decisions, help ensure that rapid growth in renewable energy continues and shows the key role of renewables for our energy security.鈥�

But Seb Berry, head of public affairs for solar firm Solarcentury, said: 鈥淭he consultation response confirms that solar photovoltaics are already a more cost-effective technology than offshore wind and yet investors in the cheaper technology are now in limbo land awaiting yet another consultation and unable to commit to projects beyond March 2013.鈥�

Martin Wright, chair of the Renewable Energy Association said the review would 鈥渋nhibit investment鈥� in solar and onshore wind.

Chancellor George Osborne had been lobbying for deeper cuts to ROC subsidies, especially for onshore wind, which he had argued should be reduced by 25%.

But it emerged this week that he was prepared to accept support close to current levels if the UK gave great priority to new gas fired power stations, a move many commentators have said would make it very difficult for the UK to meet its carbon emission reduction targets.

Davey said: 鈥淭here has been a misunderstanding that we don鈥檛 see a very positive role for gas both as a back-up [to renewables] and in a strong role on its own.鈥�

鈥淩enewables need gas and gas needs renewables, we are many years from a situation where that isn鈥檛 the case,鈥� he said.