Saturday, August 29, 2015

Where now with Renewables subsidies.

I've never enjoyed saying "I told you so". Actually, the thought usually annoys me. That's how I feel reading through DECC's newly published 'Consultation on Feed-in-Tariffs'. Arising out of my noisy opposition to National Grid's Mid Wales Connection Project, I've warned about cost of subsidies for renewables running out of control for years. So let's start with this aspect of the debate.

In 2010, the Coalition Govt decided to go big on promoting renewables. It put in place two major schemes to subsidise it - Renewables Obligations and Feed-in-Tariffs (for small scale dev'ts). A generous budget was granted, paid for by energy users. This budget (or Levy Control Framework) was to protect consumers - set at what was thought a very generous £7.6bn up to 2020/21. The OBR claim that £9.1bn is already committed. Amber Rudd, has an office with a big desk and an empty cupboard. Wasn't  difficult to see coming. Irresponsible is understatement.

Now we are faced with potential massive disruption of all the technologies dependent on Feed-in-Tariffs. Huge reduction in subsidy levels are proposed, until scheme is ended in 2018/19. A cap of £75m-£100m is being put on the FiTs total over those three yrs. Daresay that much has been spent on the idiotic proposals to cover mid Wales in wind farms. And if it looks as if this cap is too small, (which it will be) the scheme be completely ended in January. I was quite shocked to read the consultation document, even it was giving voice to the warnings of some of us over recent years. 

Its not good news in those areas where new businesses have developed to supply the renewables sector. Parts of my constituency, Montgomeryshire will inevitably see loss of business and jobs. I've always been a fan of PV solar in particular, which is now to suffer a major setback. Grieves me to think of all the money committed to wind farms. I'm bound to be criticised, despite all of my warnings of what would happen - the inevitable collision when DECC ran into the buffers of financial reality.


Pam Williams said...

Why are there no caps on fossil fuel subsidies and why are we paying any fossil fuel companies anything? According to the IMF the subsidies to the fossil fuel industry in the UK is over seven times those for renewables.
It makes me wonder if all Tories are climate change deniers.

Donovan950 said...

Why do you not mention the HUGE subsidies on nuclear energy? It seems you are only against subsidies on new technologies, wind in particular? Why is is this?

You do not seem to think it necessary for this country to be have an independent energy resource. You completely ignore the climate change issue, do you think it is a huge science-conspiracy against billion dollar multi-nationals and governments?

Your/my generation were diners stuffing ourselves senseless at the Restaurant of the Earth’s Riches knowing — while denying — that we’d be leaving our grandchildren a tab that can never be repaid. But at least you got a nice back-drop for your azaleas.