You are:

Press Releases

RenewableUK reaction to Treasury's key announcement on financial support for wind energy

4 December 2013

 

RenewableUK has welcomed the publication of the National Infrastructure Plan 2013 by the Treasury, which confirms the levels of financial support for onshore and offshore wind between 2015 and 2019.

The reduction in financial support for offshore wind is less steep than had been mooted in the draft strike prices which were published in the summer – for the financial year 2018/19, the level of support has been increased by £5 per megawatt hour, from £135/MWh to £140/MWh.

Financial support for onshore wind has been reduced by £5/MWh from 2015 onwards compared to the draft strike prices, e.g. £100/MWh in 2015/16 has fallen to £95/MWh, and £95/MWh in 2017/18 has dropped to £90/MWh.

RenewableUK’s Deputy Chief Executive Maf Smith said: “We welcome the fact that the Government has heeded the wind industry’s call for a more realistic level of financial support for offshore wind. It sends an important political signal that the Government recognises the need to back this sector, if we are to attract big wind turbine manufacturers to the UK to open up factories creating tens of thousands of jobs. The Chief Secretary to the Treasury Danny Alexander said today he wants at least 10 gigawatts of offshore wind installed by 2020, trebling current capacity. Industry can deliver this and more.

“Obviously any reduction in support for onshore wind is unwelcome, and the Government had promised that any drop would be based purely on economic evidence. Onshore wind is the most cost-effective form of renewable energy we have, so if we want to keep energy bills as low as possible, we need to ensure the level of support is right. Our challenge to Government is that it must work with industry to help us to reduce costs and support the right projects. The reduction means that some smaller projects such as community led schemes will be lost.

“If this cut has been made for political reasons rather than economic ones that would be a worry. All politicians need to understand that uncertainty spooks investors and it is the consumer who bears that cost. Voters support the development of on and offshore wind, so we now need a period of calm and consistency from Government.”

Notes

Published strike prices

£/MWh

2015-16

2016-17

2017-18

2018-19

Onshore Wind

95

95

90

90

Offshore Wind

155

150

140

140

         
         

 

Return to news listings

Recent Tweets

  1. RenewableUK

    RenewableUK: Read RenewableUK's letter to the @guardian on the public's support for onshore wind over fracking: http://t.co/gihCsf9TzL

  2. RenewableUK

    RenewableUK: @Namurian1 It relates to the strike price, which protects against price fluctations, and will decrease from 2017 See: http://t.co/1gVS0lwBGn

  3. RenewableUK

    RenewableUK: New UK record: nearly 15% of electricity from renewables – more than half from wind - media release: http://t.co/mwcpGpGKnG

Media Contacts:

RenewableUK is the UK’s leading renewable energy trade association, specialising in onshore wind, offshore wind and wave & tidal energy. Formed in 1978, we have an established, large corporate membership ranging from small independent companies, to large international corporations and manufacturers. Acting as a central point of information and a united, representative voice for our membership, we conduct research; find solutions; organise events, facilitate business development, and promote wind and marine renewables to government, industry, the media and the public. Our vision is for renewable energy to play a leading role in powering the UK.