The conservative head of the Energy and Climate Change committee has said that turning away from onshore wind would prove to be “an expensive mistake” because it offers consumers good value whilst helping to decarbonize the energy system.
In a Westminster debate on Thursday afternoon Yeo acknowledged that the development of onshore projects is “extremely controversial”, particularly within his own political party, but argued that offshore wind remains expensive by comparison.
In addition offshore wind cannot be expected to reduce its costs to the extent that solar technologies have managed.
“I don’t see a dramatic collapse in cost,” said Yeo of offshore wind projects.
Although solar power has seen “a rapid and considerable” fall in technology costs, it has largely been driven by development in China, he said.
Yeo added that although offshore wind can expect costs to decline in coming years there is “a limit” to what can be achieved.
In the same debate Yeo argued in favour of demand side response (DSR) options, which he said are too often misunderstood.
“The lowest carbon energy is the energy we don’t use,” he said, and urged a greater inclusion of DSR in the government’s future capacity auctions following the “shaming outcome” of its “pitiful” allocation the first round held late last year.
By technology type DSR was the biggest loser in the auction with 70 per cent of pre-qualified capacity failing to secure a contract. DSR will make up less than half a per cent of the capacity market while gas-fired power stands at 45 per cent and with coal and nuclear capacity at 18.7 per cent and 16 per cent respectively.