UK proposes a ceiling of £200m for renewable energy subsidies. Those receiving the subsidies are angry. The proposed budget ceiling of £200m is paid for by levies on the rate payers and affects all large scale, low carbon energy such as wind, solar and biomass. ” The money will be available under the coalition’s new “contracts for difference”, which subsidise renewable energy companies who offer electricity at a lower rate of carbon emissions than fossil fuel generators, and are paid for by levies on household energy bills.”
The renewable energy industry believes this to be a large reduction in the subsidy and plays favorites.
From Click Green:
Leonie Greene, Head of External Affairs at the Solar Trade Association, commented: “The message the Government is sending out today is clear. It is backing nuclear and other more expensive renewables over value for money solar.”
“This is an absurd decision that will ultimately hit energy bill payers across Britain. Solar is already cheaper than offshore wind; it will soon be cheaper than onshore wind, and it stands a realistic chance of being cheaper than gas by the end of the decade. But this is only achievable with stable Government support and a level playing field.
“Today’s decision shows the Government is stacking the deck against solar, the most popular form of local energy, by starving the industry of resources. The sheer complexity of the new Contracts for Difference policy mechanism disadvantages small and medium sized solar businesses who are entering a game of three dimensional chess against multi-national utilities. Critical requirements for small and medium businesses have been ignored.
“The point is that only large scale solar, which was on track to being subsidy-free, is being exposed to this new Contracts for Difference system without having the back-up of the old scheme. The Government needs to fix that by guaranteeing a minimum amount of funds for solar.
“The solar industry is not asking for special treatment – just a level playing field for solar and for small businesses, who provide much needed competition.”
I suppose the idea that these low-carbon energy sources compete without subsidies is foreign. Sounds like the in-fighting for subsidies ought to be interesting. Renewable energy tax subsidies in the US were about $7.3 billion in 2013.