22nd Jun 2015 14:07
LONDON (Alliance News) - Renewable Energy Generation Ltd Monday said its five new onshore UK wind farms "should comply" with the changes made by the government last week to onshore wind farm subsidies.
Last week, UK Secretary of State for Climate Change Amber Rudd said the government, a year ahead of schedule, had scrapped the Renewables Obligation which is the primary of three subsidies for onshore wind farms, claiming the country has enough onshore wind in the pipeline.
The Renewables Obligation was introduced in 2002, and places an obligation on UK electricity suppliers to source an increasing proportion of the electricity they provide to businesses and households from renewable sources.
However, Rudd also said there would be a grace period until April 1, 2016, to "protect investor confidence", which would continue to give access to support under the Renewables Obligation to those projects which already have planning consent, a grid connection offer and acceptance, and evidence of land rights for the site on which their project will be built.
On Monday, Renewable Energy Generation said its five new onshore projects "should comply" with the grace period as they are all "currently moving into construction," it said.
The five wind farms are French Farm, Rodbaston, Brackagh Quarry, Mynydd Portref and Hallburn Farm, and together they will have a capacity of 38 megawatts. Their combined annual output, once operational, will be approximately 92,000 megwatt hours, which will increase the company's total annual wind energy production to approximately 183,000 megwatt hours from 91,000 megawatt hours.
Renewable Energy Generation also said the Renewables Obligation will remain available to any new bio-power projects until 2017. Currently, the company has 26 megawatts of bio-power capacity.
"Onshore wind remains the lowest cost, readily deployable renewable energy technology, embraced by over two thirds of the UK public. We continue to believe it should play an important role in decarbonising energy generation at the lowest cost to the consumer. REG is a diversified energy business and remains well placed to participate in the continued growth of the UK renewable energy sector," said Chief Executive Andrew Whalley.
Rudd justified scrapping the Renewables Obligation last week because onshore wind development using the Obligation has a capacity of around 11.6 gigwatts in the UK. Rudd said, when combined with the 0.75 gigawatts of onshore wind under the Contracts-For-Difference scheme, the country has sufficient wind power to meet its 2020 targets.
Renewable Energy Generation shares were up 0.2% to 54.35 pence per share Monday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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