Articles filed under Taxes & Subsidies from UK
Wind farm operators are being paid millions for "wasted" electricity under a complex system known as constraint payments. Since 2011 over £26.5million has been paid out under the constraint payments
Speculation the project could end up “dead in the water” intensified when Swedish company Vattenfall – Europe’s sixth-largest generator of electricity – announced plans to put its 75 per cent stake in the venture up for sale.
Energy Secretary insisted households will be better off due to initiatives but families will only benefit if they buy more efficient domestic appliances. Average bill is now £1,267 with £112 of that amount going on green taxes. By 2020 green taxes will have risen by over 150 per cent - £286 per family. Charity said government 'embarrassed by terrifying cost of green policies'. Claimed it is 'covering up' with a 'whitewash of wildly optimistic assumptions'.
"We're seeing in Scotland the biggest transfer of money from the poor to the rich that we've ever seen in our history," he told a press conference in Edinburgh. "In parts of the Highlands now tourism is being effectively destroyed and people are leaving the Highlands because tourists no longer want to go there with the landscape bristling with wind factories and industrial wind turbines.
He suggested the wealthiest Scots are benefiting from the spread of wind farms at the expense of consumers, who have to heavily subsidise the technology in their energy bills. Among the landowners named in the book is the Duke of Roxburghe, who, he estimated, could earn £1.5 million a year from turbines erected in the Lammermuir Hills.
"The UK's wind power deployment on and offshore is way ahead of the learning curve, and needs to slow down to a rational pace to avoid insupportable burdens on the consumer and the risk of major malinvestment the unwinding of which will be painful and embarrassing."
In the report, released on Monday, the authors say wind energy "will never be suited as the lone or primary source of grid electricity due to its variable nature and will not deliver the environmental benefits expected".
Scottish Conservatives are calling for tough new measures to control the spead of windfarms. In their energy policy paper, ‘Power With Responsibility', they set out their position on energy provision for Scotland; and this includes substantially reducing the number of planned onshore wind farms due to be completed, and cutting the subsidy that turbines receive by 50%.
"This study confirms suspicions that decades of generous subsidies to the wind industry have failed to encourage the innovation needed to make the sector competitive. Bluntly, wind turbines, onshore and offshore, still cost too much and wear out far too quickly to offer the developing world a realistic alternative to coal."
As Scottish households struggle to pay for rising heating bills, it is revealed that more than £18million has been paid out to the owners of Scotland's 19 windfarms to stop them producing electricity when demand is low.
The economic inefficiency of subsidies compounds the electrical inefficiency of wind farms. The U.K. should end its 200-percent subsidies for offshore wind farms, too - and the U.S. should follow suit by ending its own wind-power boondoggles.
"There are significant impacts on the rural economy and the rural environment, all of which probably weren't intended when these things were thought up," he told an event at the Conservative Party conference. "It is not very green to be blighting the economy in one area." His comments came as Greg Barker promised that the Government was dealing with the "never-ending gravy train of green subsidies".
"Giving tax breaks to wind farm companies is a horrifying idea. These firms are already raking in massive subsidies, which end up on everyone's electricity bills. "Wind farm developers are already piling into places like the Borders," said Professor Ponton, who has worked in the renewable energy field since the 1970s.
Every time electricity bills rise, supporters of wind point the finger at fossil-fuel prices, insisting wind subsidies can't be to blame because all forms of electricity generation are subsidised. This is a blatant untruth. Oil and gas receive no meaningful subsidy, while wind will cost consumers more than £1.8bn in covert subsidy by the end of the year.
A senior Whitehall source disclosed that the government was effectively railroaded into making its decision by foreign companies which make hundreds of millions of pounds a year in wind subsidies, which are added to household bills. Company chiefs were alarmed by claims that the coalition dispute was set to drag on into the autumn, sparking uncertainty across the industry.
Mr Osborne said he was “content” to accept a reduction in subsidies of just 10 per cent in the short term. ...some in the Treasury had been pressing for cuts of up to 25%. ...But the compromise offer came with a list of demands aimed at securing a big role for natural gas in Britain’s energy mix.
Ms Wallace's departure comes at a time when the Department of Energy and Climate Change (DECC) is involved in fighting the Treasury over reductions in subsidies for on-shore wind farms.
The chancellor fears overgenerous support for wind power and other renewable sources will deter investment in gas-fired power stations, which he believes offer businesses and consumers the prospect of lower bills in future.
Ministers had been due to announce revised subsidy levels for renewable energy technologies yesterday - a decision originally due in the spring but delayed amid political infighting over the scale of cuts for onshore wind farms.
The Conservatives argue that wind turbines are a blight on the countryside and were built only because the energy market was unfairly rigged in their favour by subsidies. Mr Osborne is understood to have supported the backbench demands. The Chancellor was confident yesterday of securing a deal to cut the subsidies sharply over several years.