Government inaction leads to wind turbine factory liquidation
14 March 2018
Posted by: Rob Norris
RenewableUK says the Government’s failure to set out how it intends to deliver small-scale renewable energy in the future has been a key factor in one of the small wind sector’s best-known and most iconic companies going into liquidation.
Gaia-Wind opened its factory in Glasgow in 2011 and has manufactured nearly 2,000 small wind turbines - not only for the UK market, but also exporting hundreds of the them to other parts of Europe, the USA, Japan, and as far afield as Tonga in Polynesia – including the kingdom’s first wind turbine.
For over a year, the wind industry has been urging Government to start a long-promised consultation on the future of the Feed-in Tariff, which supports small-scale renewables. This is currently due to close to new applicants in March 2019, and the absence of any clarity on future policy is now having a serious impact on wind and solar companies and their investors. . Another factor is difficulties with the international export markets.
The renewable energy sector has been calling for a support mechanism which allows small-scale renewables to make the transition to becoming subsidy-free. Small-scale local energy projects create economic benefits across the country, engaging communities who often use innovative business models to finance their plans.
RenewableUK’s Executive Director Emma Pinchbeck said “Inaction by Government has real consequences for small businesses and the communities they work with. We have warned officials time and again that a failure to treat this issue as urgent puts jobs at risk. These are local jobs created by British entrepreneurs. We need clarity on the future of small-scale renewables as soon as possible for the sake of other flagship firms and innovative community energy projects nationwide”.
The provisional liquidators are now looking for potential buyers for the factory which employs 12 people in Glasgow.
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RenewableUK is the trade and professional body for the wind, wave and tidal energy industries. Formed in 1978, and with more than 400 corporate members, RenewableUK is the country’s leading renewable energy trade association. We are celebrating our 40th anniversary this year.
More on Gaia-Wind can be found here