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Renewable sector welcomes assurances on green subsidies

Organisations working in the green energy sector have welcomed assurances that the green levies are here to stay for the foreseeable future

Green subsides are here to stay for the foreseeable future

Green subsides are here to stay for the foreseeable future

In recent weeks, green subsidies have been under severe scrutiny after a number of the biggest energy providers in the UK blamed them for the rises in energy prices they have introduced ahead of winter.

However, earlier this week in the House of Lords, Energy Minister Baroness Verma said that the review of green levies due to take place would not take the subsidies paid to renewable energy investors into account.

“No one is talking about changing support for large-scale renewables or feed-in tariffs,” she said.

Government reaffirms support for subsidies

This stance is one that has also been backed by the government this week, with the Department for Energy and Climate Change (DECC) confirming via a statement that it will continue to support renewables.

“Between now and 2020, the support we give to low carbon electricity will increase year-on-year to £7.6bn – a tripling of the support for renewable energy,” it said.

The government department added that since 2010, the levies had helped to bring in some £29 billion in investment for the UK renewables sector, potentially creating some 30,000 jobs along the way.

Renewables industry sentiment to improve

Supporters of renewables plans said that this assurance from the government was good news for the sector, and would go a long way to improving the sentiment toward investment in the UK.

Jennifer Webber, director of external affairs for trade association RenewableUK, said: “Moving forward we need to put this issue to bed once and for all so that we can get on with decarbonising our energy mix and investing in the green economy, and wind is one of the most cost effective ways of doing this.”

She also added that it was refreshing to see a government minister go on record as giving support for the scheme, even though it has been slated in recent weeks from a number of different angles.

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