Renewables Obligation

Energy and Climate Change written question – answered on 4th March 2014.

Alert me about debates like this

Photo of Stephen O'Brien Stephen O'Brien Conservative, Eddisbury

To ask the Secretary of State for Energy and Climate Change

(1) when his Department will next review Renewables Obligation scheme banding levels under the Energy Act 2008; and when the outcome of this review will be published;

(2) whether there will be a reduction for further subsidies for onshore wind.

Photo of Michael Fallon Michael Fallon The Minister of State, Department for Business, Innovation and Skills , Minister of State, Department of Energy and Climate Change, Minister of State for Portsmouth

There is no further comprehensive banding review planned for the Renewables Obligation (RO) scheme before it closes to new generation on 31 March 2017. Support for large-scale onshore wind generating stations was reduced by 10% from 1 April 2013 following the last comprehensive review of RO banded support. This review, which reported in July 2012, set support rates for 2013-17. UK onshore wind costs were further examined during the call for evidence on onshore wind. The results were published on 6 June 20131 and confirmed that RO support for onshore wind would be maintained at the levels set through the banding review.

Later this year, we will be introducing a new support mechanism—Contracts for Difference (CFD)—designed to support new investment in low carbon energy. Under the CFD, it is our intention that established technologies (such as onshore wind) will have to compete on price in an auction in order to secure a contract for support. This means that only the most cost-effective projects will be built and will represent better value for money for bill-payers, while continuing to deliver the investment we need in secure, low-carbon electricity generation.

1https://www.gov.uk/government/consultations/onshore-wind-call-for-evidence

Does this answer the above question?

Yes0 people think so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.