Now that the Fullabrook wind farm has been approved, many people are asking how much subsidy its developer will receive from our taxes.The answer is “none” – the subsidies will come from our electricity bills. As to how much the subsidies will be, the answer is “enormous”.
Renewable energy generating companies receive one Renewable Obligation Certificate from the Government for every megawatt-hour of electricity they produce. These certificates have no value until sold at auction to other energy generating companies so that these companies can meet their “green” targets, which increase each year.
Historically each certificate has sold for an average of £40, so one megawatt-hour is worth about £40. So how much are the subsidies each year? If we take the Fullabrook inspector’s agreed figures, it will produce around 150,000 megawatt-hours each year. Multiply that by £40 and you arrive at £6 million a year. Over the projected 25-year lifespan of the scheme that adds up to £150 million. Then you have the sale of the electricity on top of that.
It’s no wonder that international investors are flooding into the UK to invest in wind power. And still the developers insist they are purely trying to save the planet.
6 November 2007
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