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UK govt may cut prices for renewable energy feed in tariffs

The county of Cornwall in southwest England said it anticipated a “gold rush” that could lead to 1 billion pounds ($1.6 billion) of investment in England’s poorest region.

U.K. Signals It May Cut Prices Paid for Renewable Energy Sources February 07, 2011,  By Alex MoralesFeb. 7 (Bloomberg) –– The U.K. government signaled it may cut the prices paid for electricity from renewable energy sources, saying it began a “comprehensive review” of feed-in tariffs introduced last year.

Evidence that larger-scale solar farms may “soak up” money meant for roof-top solar panels, small wind turbines and smaller hydropower facilities prompted the study, the Department of Energy and Climate Change said today in an statement. A review was originally planned to start next year.

The move will allow the government to change the above- market prices paid for wind and solar electricity by more than already planned when the new prices come into force in April 2012. The department said it will speed up an analysis of solar projects bigger than 50 kilowatts and that new tariffs may be mandated “as soon as practical.”

“This is going to put the jitters into some market segments,” Dave Sowden, chief executive officer of the Solihull, England-based trade group Micropower Council, said today in a phone interview. “It’s the fast-track threshold of 50 kilowatts that is of concern, because that’s going to catch a lot of rooftop installations. That’s come as a surprise.”………….

Record Installations

U.K. installations of solar panels last year were a record 33 megawatts, doubling the previous installed total, after the feed-in tariffs were introduced in April guaranteeing as much as 12 times the market rate for power from renewable sources.

In the wake of the program, Sharp announced a doubling of production of panels at its plant in Wrexham, Wales. Companies from the German utility E.ON AG to Tesco Plc entered the market, offering to sell and install panels for their customers. ….The county of Cornwall in southwest England said it anticipated a “gold rush” that could lead to 1 billion pounds ($1.6 billion) of investment in England’s poorest region.

U.K. Signals It May Cut Prices Paid for Renewable Energy Sources – Businessweek

February 8, 2011 - Posted by Christina Macpherson | renewable, UK