Government cuts wind subsidies

Government cuts wind subsidies

The UK Government has cut subsidies for offshore wind farms, forcing projects to seek cost cutting measures to help push their proposals forward.

Energy minister Claire Perry announced, in May, subsidy contracts worth up to £60 million a year for new projects – one third of the value of subsidies in the 2017 auction for projects with a capacity of 3.2 gigawatts.

Offshore wind farms will receive 40% less, for the electricity they generate, than that generated at the Hinkley Point C nuclear power plant.

Government said offshore projects commencing in 2023-24 would be entitled to a maximum price of £56 per megawatt-hour, which will fall to £53 per MWh for those in 2024-25 and compares to the cheapest offshore subsidy last year at £57.50.

The move to reduce subsidies comes following increased criticism over the significant level of subsidies the renewable industry relies on, as well as the impact it has on the environment.

Organisations across Scotland have called out against plans to increase the size of wind turbines, arguing they would have significant implications on the country’s peatland, which has carbon cutting properties.

 

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