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Subsidy Cut Deals Blow To UK Wind Farms

Emily Gosden, The Times

The government has slashed the financial support on offer for new offshore wind farms, forcing developers to find further cost savings if their projects are to proceed.

Claire Perry, the energy minister, said that the government aimed to “secure more energy from renewables for less” after announcing that it would award subsidy contracts worth up to £60 million a year to new projects through an auction in May.

The budget is barely a third of the value of subsidies awarded via the last auction in 2017, when wind farms with a capacity of 3.2 gigawatts got the go-ahead. The government said that it expected the reduced budget to be able to deliver more wind farm capacity than last time, of about four gigawatts.

The maximum price that new offshore wind farms will receive for the electricity they generate will be at least 40 per cent lower than the price for power from the Hinkley Point C nuclear plant.

Writing for The Times website, Ms Perry said the auctions would “make the UK a beacon for inward investment and provide the private sector with the certainty it needs to invest”.

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