Reports that the Government’s commitment to wind power has waned were quashed by Energy Secretary Ed Davey today after reports subsidies to the renewable source could be cut.
Earlier today the Guardian newspaper claimed several wind firms had put their investments “on hold” over concerns the UK Government may change its mind over levels of subsidy Mr Davey told the paper: “A responsible energy policy for this country is one that rules IN all of the key low carbon technologies to help us keep the lights on and emissions down.
“Ruling any of them OUT would be folly. It would mean one less way of cutting our dependence on imported gas, one less way of cutting our carbon emissions.”
Earlier this month more than 100 MPs wrote to Prime Minister David Cameron demanding cuts to the large subsidies received by the wind sector.
Magued Eldaief, the managing director of General Electric Energy, told the Guardian GE’s £100m proposed investment was now up in the air: “Our investment is on hold until we have certainty and clarity regarding the policy environment that we are in… One of the most important things for us is political certainty, so we can justify the business and investment case for a facility in the UK.”
The new Secretary of State said the subsidy reduction case was a sign of wind’s growing competitiveness: “Onshore wind is the cheapest of the renewables – in fact we’ve already proposed cutting the subsidy to reflect falling costs.”