Library filed under Taxes & Subsidies from UK
The concession could smooth the way for a second coalition with the Conservatives. Energy and the environment has been a key battleground over the last five years, in particular over onshore wind. The Lib Dems have until now been vocal critics of Conservative plans to end subsidies for new onshore wind farms.
The cost of environmental levies to support projects such as wind farms, solar panels and biomass plants will rise from £3.1billion last year to £9.4billion by the end of the decade, according tothe Office for Budget Responsibility.
Keith Anderson says company's East Anglia project is being scaled back and claims Government budget limits mean wind farms that do get built will be unnecessarily expensive
Following UK lobbying, the deal does not impose binding national targets for renewable energy or energy efficiency. Current legally-binding targets require the UK to generate 15 per cent of its energy from renewable sources by 2020 - in practice requiring about 30 per cent of the power sector to come from renewable sources.
On Tuesday, the day the former hurricane struck, operators across Britain were paid £2.1million, money that will come from household bills. Campaigners said £440,000 of it was paid to ScottishPower Renewables for shutting down or slowing the turbines at Whitelee, near East Kilbride – Europe’s second biggest wind farm.
Taxpayers’ handouts to massive ‘ugly’ solar farms which scar the countryside are to be axed by Environment Secretary Liz Truss. She will tell farmers tomorrow to stop pocketing public funds by carpeting large parts of the landscape with the black panels.
Former environment secretary, Owen Paterson, will argue that the 2008 Climate Change Act, which ties Britain into stringent targets to reduce the use of fossil fuels, should be suspended until other countries agree to take similar measures. If they refuse, the legislation should be scrapped altogether, he will say.
RenewableUK has issued a stark warning to the government over the future of the offshore wind industry, after RWE added another project to the growing list of schemes that have fallen victim to policy uncertainty. RWE on Friday announced it had shelved plans to invest in the Galloper offshore wind farm
Britain's energy ministry awarded too much in subsidies to eight renewable energy projects in April - 16.6 billion pounds in total - meaning that consumers will pay over the odds for the electricity the projects produce, a parliamentary watchdog said. The report, by the National Audit Office (NAO), comes amid mounting pressure on politicians to try to keep energy bills down.
Today’s NAO report finds that, by awarding these early contracts, the Department has provided certainty of support to the contractors at least five months earlier than they could have achieved under the full Contract for Difference regime. ...However, the scale of early contracts for renewables, awarded without competition, may have increased costs to consumers.
Michael Fallon, a Conservative energy minister, said that onshore wind still had a role to play in helping Britain meet its energy needs and renewable energy targets but that the industry no longer required government subsidies.
Green power generators in Scotland raked in more than £600million in public subsidies last year, with 91.5 per cent coming from electricity bills in the rest of the UK. However, the drive to become the “Saudi Arabia of renewables” is expected to push that figure to about £3billion a year by 2020.
George Osborne quietly moved to kill off Britain's renewable revolution in Wednesday's budget as he stealthily enacted David Cameron's rumoured call to his cabinet to kill off the "green crap". ...Osborne at a stroke abolished a key tax break that has attracted hundreds of millions of pounds of private money to help build Britain's green energy future.
Europe’s renewable energy investors are facing a harsh reality – that the promises from politicians can be taken away at any moment. Canada’s renewable energy investors may soon face that same reality. ...Governments across Europe, regretting the over-generous deals doled out to the renewable energy sector, have begun reneging on them. To slow ruinous power bills hikes, governments are unilaterally rewriting contracts and clawing back unseemly profits.
The door appears to be shutting on a popular means of lower risk tax-efficient investment as the government clamps down on vehicles that benefit from both public subsidies and tax breaks. Investment schemes that benefit from Renewables Obligation Certificates are set to lose their tax relief status upon the passage of the Finance Bill, scheduled for July.
Under the new scheme, companies will have to sell their electricity to the national grid under a competitive bidding system. The new scheme will limit the total amount of subsidies available for green energy; previously the subsidy budget was effectively limitless. The change has led to developers scrapping wind farm schemes amid claims that the new system will make future wind farms unprofitable.
Critics say it has not attracted investment, but has handed windfall profits to green plants built before it was introduced. Most damagingly, they say, it makes UK manufacturers uncompetitive and pushes up consumer energy bills.
Wind farm firms have been accused of building huge, ineffective turbines to exploit a lucrative loophole funded by the taxpayer. Labour MP Sir Tony Cunningham, who represents Workington in Cumbria, recently quizzed the Westminster Government to find out what action it was taking. In response to his parliamentary question Energy Minister Michael Fallon revealed he was aware that eight of 110 turbines installed at the higher 100kw to 500kw FIT rate up to September 2013 had been de-rated.
"One risk is that other countries copy what Spain is doing," the European Wind Associaiton (EWEA) policy department told Windpower Monthly in a statement. "Already we see renewable-energy support systems being changed or threatened with change, scaring off investors in several countries," it added, citing Poland, Bulgaria and "even Germany".
The report concludes that Britain’s wind industry receives more generous subsidies than schemes in France, Germany, the United States, Spain and Denmark, among others. Only six countries paid more and none are considered big players in the wind industry.