From 2014-15, offshore wind support will be 2 ROCs/MWh. This figure will reduce to 1.9ROCs in 2015-16 and 1.8ROCs from 2016-17. The subsidy for onshore wind is less generous; until March 2014, support will be reduced to 0.9ROCs.
Edward Davey, secretary of state for energy and climate change, said: “The support we’re setting out today will unlock investment decisions, help ensure that rapid growth in renewable energy continues and shows the key role of renewables for our energy security.”
Since 2002, the RO has helped to create a 500% increase in renewable electricity generation, from 1.8% of total usage to 9.7% at the end of last year. Since April 2011, the industry invested £11.3bn in the sector.
Consumers’ energy bills fund the RO and the government was naturally keen to reduce the burden on voters: the new deal reduces the lifetime subsidy cost by 11% per MWh. In real terms, this is around £11 per consumer for the remainder of this parliament.
Industry has welcomed the news. Gordon MacDougall, chief operating officer at RES said: “The government has sent a clear signal that Britain is open to investment and that vital investment in the low carbon economy will not be undermined by short-term, political interests.
He added: “The timescales associated with planning and developing much needed infrastructure projects such as wind farms require stable, long-term policies to ensure investor confidence and engagement.”
Jack Hardisty, Neptune Renewable Energy’s technical director, said that the changes were the answer to securing certainty and stability for the market.
He said: “Naturally we fully endorse the new banding level. Our business model is based on commercial viability and this is a tremendous boost…The UK has great potential in tidal stream energy and today’s announcement demonstrates that the government recognises this.”
For further information, visit DECC’s website.
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