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Energy: Wind Power

Answer

The renewables obligation (RO) is currently the Government's main mechanism for incentivising the deployment of large-scale renewable electricity. Between its introduction in April 2002 and March 2010 approximately £1.8 billion has been awarded to wind power, both onshore and onshore, under this mechanism. This figure uses the nominal value (equal to the buyout price + recycle value) of a renewable obligation certificate (ROC) in each year. The nominal value represents the maximum worth of a ROC to a generator but is not necessarily the amount paid by a supplier, which is dependent on bi-lateral negotiations between supplier and generator. The feed-in tariffs (FITs) scheme is the mechanism for incentivising the deployment of small-scale low-carbon electricity. The total net subsidy cost of wind power to be incentivised through FITs is estimated at around £1.5 billion, cumulative to 2030 (real 2008 prices, discounted). This estimate is based on the FITs model for the 2010 final impact assessment, updated for energy demand and fossil fuel prices in March 2011. Estimates are for FITs uptake and costs over and above that expected to occur under the RO. The analysis will be updated for the FITs comprehensive review. Regarding future support, the Government do not set targets for individual technologies. The amount of support provided for wind power—through these mechanisms or the feed-in tariffs with contracts for difference being introduced through the Government's electricity market reform—will be dependent on the contribution wind power makes to the renewable and low carbon electricity mix.

Secondary information

Type

Written question

Reference

13227; 732 c154-5WA

Session

2010-12

Subjects

Wind power Subsidies

Link

View this Written question on www.publications.parliament.uk