Making a statement to the Commons yesterday, Amber Rudd said this means around 250 projects are unlikely to be built because they will fall outside of the grace period announced as part of the government’s plan to end the RO a year earlier than planned for onshore wind.
The statement is the clearest indication yet from the Secretary of State that she also intends to block further onshore wind participation through the Contracts for Difference mechanism. Previously Rudd said that she “has the tools” to drive the Conservative Party’s anti-wind manifesto through the CfD mechanism but stopped short of giving details on how this would be done.
However, Rudd said that an estimated 4GW of new onshore wind will still be developed by 2020, bringing the UK’s capacity up to 12.3GW.
The majority of the new capacity will be supported by the RO, with about 0.7GW supported by contracts for difference. This would allow up to 750 projects that are currently in the planning system to be developed.
This would bring the total UK onshore wind generating capacity to “above the middle of the deployment range set out in the EMR delivery plan” whilst “remaining within the limits of what is affordable”.
She told MPs: “I believe this draws the line in the right place.”
Hitting back at the government’s plans, shadow energy secretary Caroline Flint said Rudd had been “forced” to make the statement to the Commons “because of the confusion and concern that she has caused”.
Flint added: “The cheapest form of renewable energy is already under attack and other renewable investors are worried that they will be next.
“I want our country to go forwards, not backwards. This debate is not about hot air; it is about jobs, manufacturing and investment opportunities at risk across the sector.”
Rudd intends to set out how she will reform the CfD mechanism in relation to onshore wind when announcing plans for wider CfD allocations in the next few weeks.