Do wind farms receive subsidies?
On-shore wind farms do not receive any grants or subsidies during their development. Wind farms, like all renewable energy generators, receive an additional income stream via the Renewable Obligation Certificates (ROCs) which are given during the operations of the wind farm for each megawatt hour of electricity generated. These certificates can then be sold to suppliers enabling them to fulfil their renewable energy obligation. The Government has set a target of 15% of our electricity to come from renewable sources by 2015 and 20% by 2020.
The planning and construction of UK wind farms is financed entirely with private capital. Furthermore, wind energy does not require Government money for any of its life cycle phases, such as decommissioning. When a wind farm is fully operational and starts delivering electricity to the grid, it qualifies for Renewable Obligation Certificates (ROCs) for each megawatt unit of electricity produced. The ROC payments are fixed by the electricity market, not by the Government, and serve to protect and encourage investment in low-carbon energy technologies. According to a report by the Sustainable Development Commission, in 2007 the average amount paid through ROCs was £9 per household. This money is distributed amongst all qualifying technologies, including wind, land fill gas, biomass and combined heat and power.
