Library filed under Taxes & Subsidies from UK
Companies hoping to build new windfarms, solar plants and tidal lagoons, have been dealt a blow after the government said there would be no new subsidies for clean power projects until 2025 at the earliest.
Sixty nine wind farms were paid to stop transmitting in last weekend of October. Payments have risen from £200,000 in 2010 to £85.4million in 2016. National Grid compensates energy providers if it asks them to switch off to prevent the grid becoming overloaded.
The move was announced as part of Theresa May's new industrial strategy; She said green subsidies should be slashed to help steel plants compete abroad
The Court of Appeal recently upheld the government’s right to cancel the Climate Change Levy (CCL) exemption for renewable generators. In effect this is a retrospective removal of subsidy entitlement, and should remind investors that even a seemingly secure economic rent will collapse when push comes to shove.
Oil and gas entrepreneur Algy Cluff has said the Government could provide a multi-billion pound boost to the hard-pressed North Sea industry by cutting the subsidies provided for offshore wind farms.
The delay follows the decision by Theresa May to abolish the energy department and fold it into a new Business Energy and Industrial Strategy department after she became prime minister following the Brexit vote.
Siemens has warned its plans to eventually export wind turbine blades from the UK will have to be put on hold because of last week’s Brexit vote.
The Low Carbon Contracts Company (LCCC) had sent a notice to the developer, Mainstream Renewable Power, effectively withdrawing the subsidy. Mainstream Renewable Power has taken legal action over the notice and said it “strongly disputed the validity of the termination notice”.
Plans for a huge wind farm in the outer Forth estuary are in doubt after the project hit a series of delays and lost a vital subsidy deal. The Neart na Gaoithe wind farm is the subject of a legal challenge by RSPB Scotland, which argues the scheme is an unacceptable threat to seabirds.
Opposition peers sought to extend the government's grace period criteria until 31 March 2017 for wind farms that had secured planning permission before 18 June 2015 and issued legal agreements by 18 September 2015. But a final vote on the amendment was defeated by 204 votes to 109, and the amendment was subsequently withdrawn.
Opposition peers successfully argued for an amendment to the bill, tabled by Liberal Democrat Baroness Kate Parminter, that would extend the grace period for projects that command local support and were at an advanced stage of development.
This short story has been written to counter the shameless wind propaganda that is allowed into our schools to influence young minds with no effort to show the other side.
The idea to end the renewables obligation (RO) early is a key part of the Bill, which has been backed by MPs and also seeks to give people the final say on new onshore wind development applications in their area.
The idea to end the renewables obligation (RO) early is included within the Energy Bill, which received an unopposed third reading from MPs and will return to the Lords for further scrutiny. ...Alongside changes to subsidies, the Bill also seeks to give people the final say on new onshore wind development applications in their area.
Ministers last night faced fresh accusations of reneging on their manifesto commitment, which made no mention of any exemption for Scottish islands and simply vowed to “halt the spread of onshore windfarms” and to “end any new public subsidy for them”.
Conservative MP and former Environment Secretary Owen Paterson said: “There is no place for subsidising wind – a failed medieval technology which during the coldest day of the year so far produced only 0.75 per cent of the electricity load.” A spokesman for the Department of Energy and Climate Change said: “To be absolutely clear, there is no change whatsoever to our commitment to end new onshore wind subsidies.”
Strong wind conditions in the early hours of Monday and Tuesday morning threatened to overwhelm the grid with more subsidised power than needed, forcing National Grid to offer lucrative payouts of between £58 and £115 per MWh to turn the turbines off.
Any visitor to our picturesque countryside around Yorkshire can see for themselves that we have taken more than our fair share of wind turbines. I have first-hand experience of fighting plans for entirely inappropriate wind farms around York. Every single time it was the developers who were trying to impose their turbines on local communities who simply did not want them.
The Government’s original Energy Bill set out provisions to get rid of the subsidies from April of this year - a year earlier than planned. However, that element of the proposed legislation was successfully scrapped by peers. But introducing the Bill for its second reading in the House of Commons, the Energy Secretary said it will be put back in.
UK onshore wind farm projects worth £1bn have now been scrapped or put on hold by RWE Innogy following recent policy changes, the German energy giant has disclosed.