Energy: Wind Generation

House of Lords written question – answered on 4th June 2009.

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Photo of Lord Reay Lord Reay Conservative

To ask Her Majesty's Government what the additional financial support set out in the Budget for offshore wind farms will add to electricity consumers' bills.

Photo of Lord Hunt of Kings Heath Lord Hunt of Kings Heath Minister of State (Sustainable Development, Climate Change Adaptation and Air Quality), Department for Environment, Food and Rural Affairs, Minister of State (Sustainable Development, Climate Change Adaptation and Air Quality), Department for Energy and Climate Change, Minister of State (Department of Energy and Climate Change), Minister of State (Department for Environment, Food and Rural Affairs) (Sustainable Development, Climate Change Adaptation and Air Quality) (also in the Department for Energy and Climate Change), Deputy Leader of the House of Lords

If a higher level of support as set out in the Budget for offshore wind under the renewables obligation were to go ahead, it would have no cost in the short term before the projects start generating electricity. It will have an impact on electricity bills in the longer term. The final cost would depend on how many projects proceed and meet the criteria and the effect that this has on the electricity market.

Our expectation is that this proposal could be worth some £2 billion to £3 billion of additional support over the twenty years' lifetime of the projects. Officials are currently undertaking work to assess the longer-term impact of renewables policy measures on consumer energy bills, as part of the renewable energy strategy.

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