UK pushes gas, cuts support to wind in energy mix

The UK's Energy Department has opposed significant cuts to subsidies given to onshore wind farms, even as it announced a reduction of 10 per cent in payments for new farms.

However, the government's move to support future gas power outlined yesterday in what appeared to be a compromise between the Liberal Democrat-led department and Chancellor George Osborne drew sharp reaction from environmental groups.

In a compromise formula, Osborne had offered to drop his demands for deeper cuts in subsidies for onshore wind farms if the Lib Dems allowed natural gas to retain a big role in the power sector, rather than commit to its virtual decarbonisation by 2030.

It had been suggested in a number of media reports that the chancellor, with backing from 100 Tory backbenchers was demanding cuts to subsidies for the technology of 25 per cent.

However, according to the Department of Energy and Climate Change (DECC), the subsidies, which were paid for from consumer energy bills, would be cut by 10 per cent as planned from 2013.

Energy secretary Ed Davey said, the changes to subsidies for renewables, which also include reduction in offshore wind payments and more than doubling support for tidal stream and wave power, would boost clean electricity even as it curbed the cost to consumers.