Wind Farm Subsidies To End

It's been confirmed subsidies for on-shore wind farms are going to be axed by the UK government.

Last year £800 million was given to land wind energy, the payments will end by April next year. Environmental campaigners have criticised the Conservatives for attacking the cheapest form of clean energy.

Wind farms that already have planning permission will still get the subsidy. The Scottish Government has described the decision as 'regrettable'. 

Energy Minister Fergus Ewing said: “The decision by the UK Government to end the Renewables Obligation next year is deeply regrettable and will have a disproportionate impact on Scotland as around 70 per cent of onshore wind projects in the UK planning system are here.

“This announcement goes further than what had been previously indicated. It is not the scrapping of a ‘new’ subsidy that was promised but a reduction of an existing regime - and one under which companies and communities have already planned investment.

“Onshore wind is already the lowest cost of all low carbon options, as well the vital contribution it makes towards tackling climate change, which means it should be the last one to be scrapped, curtailed or restricted.

“The UK Government has ignored the concerns of businesses and organisations who are integral to the future energy security of both Scotland and the UK, as well as to environmental organisations who recognise the importance of renewable energy in helping reduce emissions. The UK Government have chosen to place at risk a huge investment pipeline, conceived in good faith by developers based on statements from the UK Government.

“The decision will cause huge uncertainty for investors not just in onshore but across the renewables sector as a whole - especially as there is no information as to other onshore wind schemes under Electricity Market Reform Contracts for Difference or those smaller than 5 MW under the Feed in Tariff.

“Moreover, the decision will prevent onshore schemes proceeding whilst offshore wind will go ahead despite receiving far more generous subsidies. This, the industry claim, will lead to extra costs for consumers of possibly around £2-3 billion.; and must be irrational in that respect.

“Therefore we have warned the UK Government that the decision, which appears irrational, may well be the subject of a Judicial Review.

“The Scottish Government remains ambitious for the renewable energy industry and aims to maximise the vital contribution it makes towards tackling climate change. We will continue to work together with the industry as we continue to support the growth of renewables in Scotland.”