Onshore wind farm developers will receive a 10pc cut in their subsidies from next year, the coalition government announced today.

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Energy Secretary Ed Davey said the changes to subsidies for renewables, which also include reducing offshore wind payments and more than doubling support for tidal, stream and wave power, would boost clean electricity while curbing the cost to consumers.

The announcement from the Liberal Democrat minister comes after Conservative MPs within the coalition had been calling for a much bigger cut to the subsidies that companies receive for wind energy.

The Department of Energy and Climate Change confirmed that subsidies, which are paid for from consumer energy bills, would be reduced by 10pc as planned from 2013.

The decision to cut wind payouts and increase support for tidal, stream and wave power could prompt investment of between £20 billion and £25 billion in the economy between 2013 and 2017, the department claimed.

The government said rates of support for offshore wind will reduce as the cost of the technology comes down during the decade.

Mr Davey said: “Renewable energy will create a multi billion-pound boom for the British economy, driving growth and supporting jobs across the country.

“The support we’re setting out today will unlock investment decisions, help ensure that rapid growth in renewable energy continues and show the key role of renewables for our energy security.

“Because value for money is vital, we will bring forward more renewable electricity while reducing the impact on consumer bills between 2013 and 2015, saving £6 off household energy bills next year and £5 the year after.”

But today’s announcement also set out the government’s backing for gas, including £500 million tax breaks for shallow water gas fields to boost investment in economically-marginal gas fields.

The Government said gas would continue to play an important part in the energy mix beyond 2030, to complement “intermittent” renewables.

12 comments

  • I think people who don't like wind turbines should be forced to live underneath a massive cooling tower - for lols

    Report this comment

    Callum Ringer

    Thursday, July 26, 2012

  • Who remembers the promise of the "greenest government ever"? U-turn after u-turn and broken promise after broken promise that has completely fallen apart.

    Report this comment

    Jeffrey Osborne

    Wednesday, July 25, 2012

  • At the end of the day they will never produce enough power to pay for themselves so why did we even bother with them? Oh yeah the EU! Don`t even get me started on that lot. Nuclear power produces about 87% of electricity used in the UK and it`s reasonably clean except for a small amount of waste. Surely that`s where the investments should be going. Then hopefully we can all start enjoying cheep electricity. Also for those who don`t know British Energy are a French company which should never have been allowed. They own Sizewell. The EU once more!

    Report this comment

    BigSean

    Wednesday, July 25, 2012

  • Bigsean, nuke power only accounts for 14% of electric production in the UK...not forgetting that lethal legacy of forever waste. The new normal in the near future will be rolling brown outs, , when all these old fashioned wind mill thingamabobs are all up and sort of running.

    Report this comment

    nrg

    Wednesday, July 25, 2012

  • Useless contarptions that are a monumental eyesore where ever they are sighted.Why should they get any subsidies at all?. It should have been a far bigger cut then we'd be forced into developing ther forms of energy,maybe some that unlike that ludicrous eyesore at Mess Point ,actually work.

    Report this comment

    kevin bacon

    Thursday, July 26, 2012

  • It should have been a 100% cut, then we'd have no more of them!

    Report this comment

    windup

    Wednesday, July 25, 2012

  • The climate change deniers are out in force again,all paid for by the oil and gas lobby who are taking a day off from arms sales.

    Report this comment

    Peter Watson

    Thursday, July 26, 2012

  • It's still a scam - just slightly less money being transferred from the poor to the rich. Bring back a good old socialist Government - it would never allow this to happen. Are you disillusioned by rising electricity prices, over dependence on the “green” dream [especially uneconomical and inefficient wind farms] and the destruction of our countryside then please object to the Government by GOOGLING “E-PETITION 22958″ and following the link.

    Report this comment

    David Ramsbotham

    Thursday, July 26, 2012

  • Why any subsidy? Just another payout for landowners, and we all know around here who that means

    Report this comment

    weaversway

    Thursday, July 26, 2012

  • Just wait for the announcement from the boss of the outer disaster saying that tidal, stream and wave power is the way forward for the disaster, in yet another 'U' turn.

    Report this comment

    "V"

    Wednesday, July 25, 2012

  • no wonder my fuel bills are so high.stupid ugly wind farms.

    Report this comment

    bookworm

    Wednesday, July 25, 2012

  • They told us there is not much oil left and brought the prices up, now they discovered loads more and want to return to the middle ages via smog alley. I'm looking forward to the plans for a Wash barrier being revived and two nuclear power stations cancelled. But I'm also looking out for[pigs flying by.

    Report this comment

    ingo wagenknecht

    Thursday, July 26, 2012

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