Question

To ask Her Majesty’s Government whether they are planning to review the current rate of subsidy offered to suppliers of energy generated from wind farms.

There are currently three mechanisms through which wind farms can seek support: the renewables obligation (RO), contracts for difference (CFD) and the small-scale feed-in tariff (FIT).

No further comprehensive banding review is planned for the RO scheme. The last review, which reported in July 2012, set support rates through to the RO’s closure to new generation on 31 March 2017. The first allocation round for CFDs is currently underway. It is our intention that established technologies (such as onshore wind) will have to compete on price in an auction in order to secure a contract for support, meaning that only the most cost-effective projects will be built and so CFDs will represent better value for money than the RO. EU state aid clearance for the FIT requires a review of the scheme every three years. The next periodic review is scheduled to take place later this year.