It was announced earlier today that the UK will reintroduce support for onshore windfarms, four years after deciding to end support for new projects. It is believed that the policy reversal reflects a view that onshore wind will be crucial to the UK’s chances of delivering on its target of net zero carbon emissions by 2050. Policy advisers to the government, briefed environmental campaigners outside No. 10 Downing Street earlier today and, according to a report by the Guardian, an official announcement will follow later today from the Department for Business, Energy and Industrial Strategy (BEIS).
The block enacted four years ago meant that new projects were unable to bid for guaranteed prices from the power generated. Local protesters were also able to largely veto new projects, based on complaints that included the aesthetic impact of onshore farms. However, it is understood that onshore wind projects will be able to compete for contracts with other renewable sources, such as onshore solar and offshore wind.
2019 saw lowest increase in new onshore wind capacity since 2011
Reflecting the impact felt from the removal of government support, 2019 saw the lowest increase in onshore windfarm capacity since 2011.
Over recent years onshore wind has cemented its position as a low-cost producer of non-carbon energy, ahead of other technologies such as nuclear power. This has put pressure on the government to reverse the decision taken in 2016 under David Cameron.
Projects likely to be able to apply for new CFDs by 2021
It is thought that onshore wind projects will be able to apply for contracts for differences (CFDs) by 2021. Government CFDs allow renewable power generators to benefit from a fixed price for power sold to the grid. This is important given the high fixed upfront costs involved in delivering renewable energy infrastructure.
Renewable energy infrastructure investment companies with UK onshore windfarm exposure include: Greencoat UK Wind, Renewables Infrastructure Group, JLEN Environmental Assets.
TRIG/UKW/JLEN: Report: UK government to renew support for onshore windfarms