• Backs £4bn EIB deal
• Welcomes review of Renewables Obligation
• Supports long-term funding for new technologies
UK renewables industry leaders today welcomed Alistair Darling’s Budget announcement of a package of measures to build a low carbon economy and further decarbonise electricity generation. The proposals include a potential £525m of new money through a review of the support mechanism for offshore wind.
The Chancellor also announced a new deal with the European Investment Bank to provide a package of up to £4 billion for investment in renewable infrastructure projects, as well as a one year across the board doubling of capital allowances from 20% to 40%.
Adam Bruce BWEA Chairman said:
“This package of measures deserves a welcome from our industry, and is in line with proposals that we have been working through with government. It addresses the short-term economic hurdles we faced due to the fall of the £ against the €, and the post-Lehman collapse in project finance.
It also restates the Government’s long-term commitment to the renewable energy sector, and should enable us to unlock up to £10bn of private sector investment in wind and marine energy projects over the coming few years.”
The Budget proposes to review the support given to the offshore wind from Renewables Obligation Certificates by £525m. Electricity supply companies currently receive 1.5 ROCs for every megawatt hour (MWh) of energy they buy from offshore wind farms, which they can then sell on. Under the Chancellor’s plans this will rise to 2 ROCs for the financial year 2009-2010, and fall back to 1.75 ROCS in 2010-11.