Decision on Renewable Energy Subsidies will be Made Soon

Ed Davey, the Energy and Climate Change Secretary, has stated that we will not have to wait until after Parliament returns from summer recess in order to know the changes that will be made to the Renewable Obligation subsidy scheme. In order to give renewable energy developers the peace of mind they have been looking for he will make the announcement as soon as possible, sometime before the 30th of September.

He also took the time to deny rumours that the Treasury is stuck in a row with the Department of Energy and Climate Change which is delaying the decision making process. It has been said that the Treasury wants to cut onshore wind subsidies by as much as 25%, a cut which would cripple the industry according to wind farm developers.

“I can say on the record there's no one arguing for the sort of cuts we've seen in the newspapers. The fact is that we have a very busy schedule in government and the Treasury has been working very well with the department to analyse our findings.”

Negotiations over the subsidy scheme are on-going, and the Lib Dems have promised that cuts will only be made if they can be reasonable justified using credible evidence.

By. Charles Kennedy of Oilprice.com