Pushing Up Profits

Plans to restrict wind farms to seas around Britain will need much larger subsidies from consumers, experts say.

Newspaper reports suggest that the Conservative Party will include a pledge to limit onshore turbines in next year's election manifesto.

But a member of a working group reviewing UK wind energy said this would require increased subsidies of around £300,000 per turbine per year.

Prof Richard Green said this would have a knock-on effect on electricity bills.

Long unpopular among some Conservative MPs from rural constituencies, onshore wind turbines appear to have incurred the wrath of the Prime Minister as well.

Reports suggest that he wants next year's election manifesto to include a promise to limit subsidies and toughen planning laws to make wind farms unviable in the countryside.

Increased emphasis is to be placed on offshore farms, although it is known that these are more expensive to build and run.

Speaking at the launch of a new report from the Royal Academy of Engineering (RAEng) on wind energy in the UK, Prof Green said that strategy would come at a significant cost in increased subsidies.

Under government plans, onshore wind turbines will receive £90 per megawatt hour of electricity generated from 2017. But offshore turbines get more aid, around £140 per megawatt hour.

"That's about £300,000 per year per turbine that is moved from onshore to offshore," said Prof Green who is an economist.

"That is the cost in additional subsidy, at the rates the government is planning to pay in about 2017. Those subsidies are recovered through electricity bills."

According to the RAEng review, there are around 4,800 onshore turbines either operational or under construction in the UK as of February this year. Another 1,800 have received planning permission.

Offshore there are 1,400 either operational or under construction with another 700 having permission to build.

The report points out that onshore wind energy is more expensive than electricity from coal or gas, but wind is one of the cheapest sources of low carbon power.