Climate1 min read

Healey to veto new offshore wind projects if they will not lower bills

By · Via The Guardian Politics · Published by Everything Blog

In short

Under the new policy, upcoming subsidy auctions will require projects to prove the national grid can take their power without inflating end-user costs. The shift addresses National Audit Office warnings regarding multibillion-pound curtailment expenses for households and businesses. The broader strategy also redirects funds through £3bn in departmental cuts, reducing support for the domestic heat pump scheme to help finance higher military budgets.

Key points

  • Offshore wind approvals are now strictly contingent on grid capacity and their direct abi…: Offshore wind approvals are now strictly contingent on grid capacity and their direct ability to lower energy bills.
  • Government allies are pursuing a long-term plan to move green costs away from consumer bi…: Government allies are pursuing a long-term plan to move green costs away from consumer bills onto general taxation.
  • Industry experts express concern that departmental budget cuts mark a significant retreat…: Industry experts express concern that departmental budget cuts mark a significant retreat from Labour's 2030 clean power targets.

Sources checked by our analysis pipeline: 1

John Healey has said he will veto new offshore wind projects if they will not lower bills, adding to concerns that the government is moving away from the pro-renewables agenda.

Announcing his plans, the chancellor said clean power is “how we break the grip of international gas prices on our bills” but added the shift towards it “has to come at the right pace, in the right places, with the grid to carry it”.

New offshore wind projects lodging bids for subsidy contracts will only get signed off by ministers if they believe that all the power generated could be accommodated by Britain’s electricity grid without pushing up costs for consumers.

Writing in the Times, he said: “There’s no sense building power that can’t connect and then paying to switch it off. We will take that approach into our next renewables auction, only buying projects that can lower bills while strengthening our energy security.”

The move appears to be a further shift away from Labour’s target of having clean power by 2030, after Healey revealed more than £3bn worth of…

Climate