Energy secretary Ed Davey has insisted that the government remains committed to renewable energy, after ministers agreed a deal on cuts to wind farm subsidies.
Conservative ministers including chancellor George Osborne had reportedly been pushing for a 25 per cent reduction in government funding for wind power, but Liberal Democrats would only support a 10 per cent cut. A deal was finally agreed this week.
“The support we're setting out today will unlock investment decisions, help ensure that rapid growth in renewable energy continues and shows the key role of renewables for our energy security,” Mr Davey explained. “Because value for money is vital, we will bring forward more renewable electricity while reducing the impact on consumer bills.”
The Department of Energy and Climate Change claimed that the new arrangement would attract between £20bn and £25bn worth of investment in Britain’s renewable energy sector over the next four years.
Earlier this week, energy group Centrica announced it was to invest £1.4bn in a new North Sea gas project after the industry was handed a £500m tax break by the coalition.