Research from the Policy Exchange has shown that the way subsides for the creation of additional wind farms work in the UK, means that a higher proportion of household bills go towards these than in other countries.
The findings from the Policy Exchange showed that the cost of wind farm subsidies in the UK is currently £95 per megawatt hour for onshore wind farms. This is nearly four times as much as the £27 per megawatt hour that is added to bills in Brazil, where they are the cheapest in the world.
The news comes at a time when the UK government has just announced changes to its green policy, that mean onshore farms will receive less money, as it looks to promote offshore farms as the way forward.
On top of this, Energy Minister Michael Fallon also looks set to unveil plans that will look to make subsidies far more competitive, according to the Daily Mail.
Government ‘must be ruthless’
The Policy Exchange said that in order to reduce the subsidies that are affecting household bills in this way, the government must adopt a more ruthless approach to renewable energy technology that is not performing in a way that benefits the nation.
“Cutting state support for renewable technologies that do not come down in price,” is the way forward, according to the author of its newest report, Simon Moore.
Offshore wind may play an important role in our future energy mix. But it should not be given favourable treatment at the expense of other low carbon technologies which could reduce our carbon emissions at a much cheaper price,” he added.
The report went further to say that in their current guise, offshore wind farms are simply not a long-term viable option because they are just not affordable – they generally cost 50% more than onshore alternatives to build and run, the report stated.
Policy Exchange wants to see the government get rid of the EU Renewable Energy Target, because, it said, it imposes “unnecessary costs” on the price of energy in the UK.