Revised Funding to Help Offshore Wind Businesses in Humber

New funding levels for renewables technology will support the Humber’s ambitions to be a world-class centre for green energy, according to an industry leader.

Sam Pick, of the Renewables Network, has broadly welcomed the Government’s long-awaited announcement on clean energy subsidy levels.

For the Humber region, Mr. Pick said the revised funding – which includes an increase for marine renewables – have to be seen as progress and should help stimulate the local market.

Mr. Pick, who is business development director of the Renewables Network – a Humber-based organisation that helps companies enter the green energy market – said: “The subsidy announcement is broadly positive for the Humber and provides continued support for its target of becoming a leading centre for renewable energy.

“Marine renewables and offshore wind power are two of the major focuses for the Humber region and so the level of funding outlined by the Government will help the region’s businesses and ambitions.

“I hope this long-awaited announcement will now provide some confidence and support for the various renewables projects planned and already being worked on across Yorkshire and Lincolnshire.

“The decision should help firms plan for the long-term and will help unlock millions of pounds of intended investment.”

The Department of Energy and Climate Change has said subsidy levels – known as Renewables Obligation Certificates (ROCs) – will be cut by 10 per cent for onshore wind power, yet this is only guaranteed until 2014, with a further review expected next year.

However, support for offshore wind will decrease gradually, reducing from 2 ROCs per megawatt hour of electricity to 1.9 ROCs in 2015 and 1.8 ROCs in 2016.

Meanwhile, funding for marine energy, such as wave and tidal power, will rise from 2 ROCs to 5 ROCs per megawatt hour.

On the issue of subsidies, Mr. Pick said the renewables industry was aware of the need to cut costs and be able to operate without state support.

He said: “The industry accepts and understands the need to reduce subsidy over time and become self-sustaining.

“But a key way of doing this is through research and development and establishing new technology.

“And although the private sector – which will drive much of this innovation – needs help to get this work moving, the return on investment will be tens of billions of pounds and contribute positively to the economy for decades to come.”

Ahead of the subsidy announcement, reports had emerged of significant disagreements and delays, with compromises having to be made within the Coalition government.

Chancellor George Osborne was said to favour options focusing on gas power, while Energy and Climate Change Secretary Ed Davey is understood to have wanted to limit the extent of subsidy cuts to onshore wind.

Mr. Pick said: “The subsidy decision illustrates the danger of allowing politics to interfere with sound judgement and the future of renewable energy in the UK.”

The Renewables Network has more than 200 member organisations, from energy companies and engineering businesses to training providers and law firms.

It is based in the Humber, which is aiming to be the UK’s renewables capital and is set to become home to major offshore wind power companies.

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Offshore Nieuws  Staff, July 26, 2012; Image: