Coalition Government not to cut feed-in tariff
After much speculation that the Coalition government would amend the feed-in tariff it was finally announced by Chancellor George Osborne (pictured) that: “The efficiency of feed-in tariffs will be improved at the next formal review… This will save £40 million in 2014-15.
Therefore feed-in tariffs will be refocused on the most cost-effective tech-nologies in 2014-15. The review also outlined that over one billion pounds will be set aside for the Green Investment Bank, however the Chancellor said that he hopes much more will be invested from private sector and future government asset sales. By injecting such an amount into this bank, the coalition hopes to create jobs and reduce carbon emissions in order to meet the country’s target of 80% reduction in emissions by 2050. The government will also go ahead with the planned Green Deal, which has no upfront cost to homeowners, thus scrapping Warm jameshallison casino Front, which spent £280m a year on im-proving energy efficiency for poorer households.
The Department of Energy and Climate Change (DECC) settlement includes:
Up to £1 billion of investment to create one of the world’s first commercial scale carbon capture and stor-age (CCS) demonstration plants;
Over £200 million for the development of low carbon technologies including offshore wind technology and manufacturing at port sites;
Increased incentives for low carbon energy generation through the Renewable
Enabling households to improve the energy efficiency of their homes at no upfront cost through a Green Deal; and
Overall savings within DECC’s core resource budget of 30% in real terms by 2014-15, including through cutting lower value projects and focusing on key priorities.
The Spending Review settlement enables DECC to prioritise spending in areas where it can have most impact. For example, new low carbon technologies have the potential to contribute to growth as well as to emissions reductions.