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Wind Power

Volume 481: debated on Monday 27 October 2008

To ask the Minister of State, Department for Business, Enterprise and Regulatory Reform what the (a) average gross income per annum and (b) subsidy from the public purse for a large 2.5 MW installed capacity wind turbine was in the latest period for which figures are available. (225109)

I have been asked to reply.

The information is as follows:

(a) The Department does not hold information on income for wind farms. Generators agree a contract with suppliers for the sale of electricity and renewable obligation certificates (ROCs), and this information is therefore likely to be commercially confidential.

(b) The renewables obligation are the Government’s main mechanism for supporting renewable energy. It does not pay a subsidy to generators from the public purse, but instead places an obligation on suppliers to source a specific and annually increasing proportion of their sales from renewable sources. Suppliers meet their obligation either by presenting ROCs, which are issued to generators for every MWh of eligible renewable generation; by paying a buy-out price; or a combination of presenting ROCs and paying the buy-out price. Money from the buy-out fund is recycled pro-rata to suppliers presenting ROCs.

The price of a ROC is therefore set by the market. However, the nominal value of a ROC for a particular obligation period can be calculated by adding together the buy-out price and the recycled payment for that period. For 2007-08, this gives £34.30 + £18.59 = £52.89.