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News Release

London

JLL responds to government announcement to scrap the Renewables Obligation for onshore wind

Head of Renewable Energy Capital comments on the impact of the decision


Following today’s announcement by the government that the Department of Energy and Climate Change (DECC) will close the Renewables Obligation (RO) to onshore wind farms from 1 April 2016, a year earlier than previously agreed, Dane Wilkins, head of Renewable Energy Capital, JLL, said: “Energy and Climate Change Secretary Amber Rudd’s statement today that the UK now has enough subsidised projects in the pipeline to meet its renewable energy commitments directly contradicts the latest progress report from the European Commission, which projected that the UK is set to fall short of its 2020 EU renewable energy target. It seems odd that the government would decide to end the RO early for onshore wind, which is by far the cheapest utility-scale renewable source of energy generation.”

Dane Wilkins, continued: “This action is actually more likely to increase consumer bills, as more expensive technologies will need to be used to meet these binding EU targets. The UK renewables market has always been seen as a safe haven because of the government’s historic approach to the grandfathering of projects where significant financial investment has been made, but this controversial move is likely to damage investor confidence irreparably. DECC’s announcement affects many of our clients and so we would encourage the government to consult with the industry before formalising this legislation, as well as provide immediate clarity over the proposed grace periods.”