Government winds energy subsidies in earlier than expected

From 1 April 2016, new onshore windfarms will be excluded from a subsidy scheme, the Department of Energy and Climate Change said.

Subsidies to energy groups were expected to be brought to an end in 2017 but with the decision anticipated by 12 months, the 3,000 wind turbines still awaiting planning permission could be put in jeopardy.

Fergus Ewing, the Scottish minister for business said scraping the decision to scrape the subsidy, which is funded by levies added to household fuel bills, could be the subject of a judicial review.

"The decision by the UK government to end the Renewables Obligation next year is deeply regrettable and will have a disproportionate impact on Scotland, as around 70% of onshore wind projects in the UK planning system are here,” he said.

However, the Conservatives defended the move, claiming onshore turbines often fail to win public support and are unable by themselves to provide the firm capacity that a stable energy system requires.

"We are driving forward our commitment to end new onshore wind subsidies and give local communities the final say over any new wind farms," said Energy and Climate Change Secretary Amber Rudd.

However, the decision to scrape the subsidies a year earlier than planned was criticised by the Confederation of British Industry (CBI).

“Cutting the Renewables Obligation scheme early sends a worrying signal about the stability of the UK’s energy policy framework,” said CBI deputy director general Katja Hall.

“This is a blow, not just to the industry, and could damage our reputation as a good place to invest in energy infrastructure.

“It is right that an appropriate grace period is put in place to account for projects where significant investments have already been made.

“The government must now work closely with industry to get the details right.”