George Osborne is pushing for onshore wind energy payment rate cuts despite renewable industry pleas.
Wind farm companies say it does not make sense to kill the deployment of the cheapest renewable energy technology if politicians are genuinely are worried about the cost of green energy.
Onshore wind energy is currently the cheapest and most effective form of renewable energy in the UK but new wind farms are unlikely to be brought on stream in England if prices are slashed by 25%.
According to the Independent over the weekend, Tory MP Tim Yeo, chairman of the Energy and Climate Change Select Committee said: “This is an example of where the Department of Energy and Climate Change’s attempts to stimulate renewable energy are being hampered by Treasury intervention.
“The way to deal with this – and realise the savings the Treasury wants to achieve – is to have more onshore renewable energy, which requires lower levels of subsidy, and less offshore, which requires more. We need to change the balance.”
Juliet Davenport, chief executive of the renewable electricity supplier Good Energy, said the move was “a reckless act of political opportunism” designed to boost Mr Osborne’s popularity among his own MPs.
Post by Vicky Portwain