Huhne's review of energy subsidies under attack

AN UNEXPECTED announcement earlier this week by the UK government of a review into subsidies for renewable energy has been accused of putting a great deal of uncertainty into the market.

While Energy Secretary Chris Huhne's main target in the review appears to be focused on large-scale photo voltaic schemes, all other energy sources eligible for feed in tariffs, including wind power, are included.

North of the Border, most of the enthusiasm is for wind energy projects and Alistair Fell, of land agents H & H Bowe, said those contemplating such projects should be aware of possible changes to payment rates.

"Anyone considering bringing in a medium to large wind turbine project now needs to realise that there is no guarantee as to what they are going to receive for their electricity," he said.

"This is hugely concerning. It is now not possible to carry out a forward business plan because there is no confirmed future income. I don't see how people are meant to look at any renewables project seriously in the next year until this is resolved."

Those in the industry were aware the government were reviewing feed in tariffs in 2012 with a view to implementing changes in 2013 but the move this week has moved the whole process forward a year.

The abrupt advance in the review appears to have been triggered by large-scale commercial interest in solar energy. Fell said he was dealing with a number of sites where the plan has been to cover 40 acres of land creating solar energy farms.

Most of those were in the south-west of Scotland and Cumbria but he was aware that companies were also looking at sites in the east of Scotland as far north as Aberdeen.

"The main aim the government say is to stop the 'threat' of large-scale solar PV sites. I don't understand what the problem is. It may be fair enough not to put these on good agricultural sites but there is no problem on brownfield sites

"I don't see the harm. They want to focus the money on paying for domestic systems but the green electricity these systems will produce is nothing compared to solar farms - if we're looking for value for money then this seems daft."

His views were echoed by the NFU of England and Wales with their energy advisor, Dr Jonathon Scurlock, saying the review was contrary to the main aim of producing more renewable energy in the country.

The one positive point from the review would appear to be the promise to fast-track a decision on feed in tariff rates for anaerobic digesters.

Scurlock reckoned that improved tariffs for this system of creating energy would solve many of the issues currently concerning those looking at AD energy.

However even if a decision was fast tracked, he believed this week's announcement would temporarily put a stop on any development.