The Welsh Government and campaigners have called for renewable energy policy to be devolved following the cut in wind power subsidies.
UK government plans announced to cut subsidies to wind power ended “potentially damaging uncertainty” for the sector, industry leaders said, but means a 10 per cent slashing of subsidy support for onshore wind and a further review in 2014.
The Department of Energy and Climate Change confirmed the cut to support from 2013 in its Banding Review for the Renewables Obligation – endings months of speculation on the support for Wales’ swelling offering of windfarms.
But the Welsh Government and green campaigners called again for devolution of powers over renewable energy subsidies to Wales in response to the announcement.
The cut was a compromise figure, down on the previously-mooted 25 per cent, but came with the caveat of a further review of subsidies in 2014, which could preempt further cuts.
Energy secretary Ed Davey also confirmed rates of support for offshore wind will fall as the cost of the technology comes down during the decade, while some marine technologies will see support increase by as much as 150 per cent.
The UK government said changes to subsidies for renewable electricity could incentivise between £20bn and £25bn of new investment in the economy between 2013 and 2017.