The deep geothermal power industry has been left feeling slighted after the Government decided to freeze the level of subsidy it will get in future.
Energy Secretary Ed Davey announced new levels for the renewables obligation (RO) yesterday, confirming the subsidy will be frozen at 2 ROCs for deep geothermal.
Dr Ryan Law, Chair of renewable trade group REA’s Deep Geothermal Group said UK firms will now be left “watching from the side-lines” while other countries take advantage of an industry predicted to be worth $40 billion by 2020.
Dr Law said: “We are shocked by this announcement. We should be at the forefront of this industry, given the strength of British engineering skills. If the UK wants to seize a share of the booming global market for geothermal development we must prove our competence at home. The message today’s announcement sends to the outside world is that the UK is closed for geothermal business.”
Members of the industry say they will be strongly pressing for the Government to hold to its promise of supporting deep geothermal in other ways.