UK looks to scrap funding of inefficient onshore wind turbines
The UK Government is to embark on a new approach to onshore wind generation as it is set to announce an overhaul of funding and planning frameworks.Energy Minister Charles Hendry will lay out plans to scrap full subsidies to locate wind turbines in unsuitable locations and provide more democratic accountability for communities affected by windfarm proposals.
The Government says it must address public concerns about onshore wind turbines and tackle negative opinion.
Ahead of a Westminster debate on onshore wind today, the DECC minister said the Government was determined to revise its entire approach.
In a statement, he said: The Government believes windpower has an important contribution to make both to our energy security and to our low carbon goals, but it should not be imposed on unwilling communities outside of a full and proper democratic process. These changes will address the democratic deficit in wind power.
Wind turbines should be positioned where the wind resource is strongest. So this year we are bringing forward a full review of the funding mechanism, so we can ensure that subsidies will not make it attractive to put windfarms in unsuitable locations. Onshore wind is by far the cheapest large-scale renewable energy source and without it, our electricity bills would have to go up.
"But the funding mechanism must reflect reductions in costs."
Solar Tariff Review Shocks Green Investors
The surprise decision by the British government to review its subsidy system for solar and green energy projects is causing shock waves among investors in the renewables sector.
The bedrock of infrastructure investment is regulatory certainty. Change damages confidence in established assets and for fledgling industries such as solar it could be fatal, commented one longstanding investor in the renewables sector. The decision to announce a review now is crazy.
At dispute is the decision announced by the Department of Energy and Climate Change to launch a comprehensive review of its Feed-in Tariff (FIT) programme which provides subsidies to self-generate solar, wind and other renewable forms of power.
Investors fear that any changes could ruin investment in the solar energy sector, where over $1bn in earmarked funds was raised in 2010 alone, according to data provider Prequin.