Boost for wind power, but Pre-Budget Report not green enough, say critics

In his statement, Darling said the Renewables Obligation (RO) would now run to 2037 to encourage continued investment in the wind power industry. The RO, which places a legal requirement on UK electricity suppliers to get some of their power from green sources, was due to run out in 2027.

Darling also announced plans to create 350,000 ‘green jobs’ by investing £535 million in capital spending projects, including energy-efficiency, transport and environmental protection.

He said he would spend around £100 million of new money on helping 60,000 low-income homes cut their energy bills through insulation, while £60 million would go on other domestic improvements.

He also promised to spend £300 million on 200 new trains and announced he was changing airline passenger taxes to a ‘four-band’ system that he said would reduce aviation by charging more for those who travel further.

However, his pledges fell short of what environmental campaigners and some cabinet colleagues had been hoping for to lead Britain out of the recession by investing in a low carbon economy.

"The Government has dodged a golden opportunity to kill two birds with one stone by using the Pre-Budget Report to tackle both the economic downturn and global climate change,” said Friends of the Earth executive director Andy Atkins. "Creating new jobs by insulating homes is a step in the right direction. But political ambition, of speed and scale equal to that shown in the economic crisis, is urgently needed to tackle global climate change and safeguard a clean and prosperous future for us all.

“Ministers should have gone much further to slash energy waste and develop the UK's massive renewable energy potential.”

The measures will have also fallen short of the wide-reaching package of green measures reportedly being lobbied for by Energy and Climate Change Secretary, Ed Miliband, and Environment Secretary Hilary Benn.
 
However, Darling’s unexpected boost to the wind power industry in the shape of the RO was welcomed by the renewable energy industry, which said it would increase investor confidence, particularly in Round 3 offshore projects.
 
“We have been for some time now asking the Government to reiterate its commitment to the Renewables Obligation beyond 2027,” said Maria McCaffery, chief executive of the British Wind Energy Association.  “If we have Round 3 projects coming on line from 2015, under the previous regime they would have been covered by the RO for only the first half of their projected life cycle. This extension to the RO will bring long term stability and encourage developers to continue with the building programme.”