Wind power gets boost from chancellor

Darling extends renewables obligation of financial support for wind power until 2037
Terry Macalister
guardian.co.uk, Monday November 24 2008 18.13 GMT

The government gave a significant boost to the wind power industry today when it promised to extend the Renewables Obligation of financial support until 2037 in the pre-budget statement.
Chancellor Alistair Darling also changed airline passenger taxes to a system that he said would reduce aviation but dropped plans for a more stringent duty on aircraft. Environmental campaigners were also disappointed that there was no wider Green New Deal.
The Renewables Obligation, which places a legal requirement on UK electrcity suppliers to source any growing percentage of their power from green sources, was only in place until 2027. Darling said today that it should run for a further 10 years "ensuring investors can plan with confidence for the future."
The BWEA said the move was "really encouraging" and would stimulate those companies looking at plans to build expensive projects deep into the North Sea.
"Under the old regime many companies were worried that the current RO was going to run out half way through their schemes," added a spokesman for the BWEA.
Darling also announced that £535m of capital spending to promote government environment objectives would be brought forward which would sustain 350,000 jobs in the low carbon sector. Around £100m of new money would be spent on helping 60,000 low income homes cut their energy bills through insulation.
An additional £60m of spending would go on other domestic improvements while £300m would be earmarked for 200 new rail carriages to help promote train transport.
The chancellor also announced a shake-up in the air passenger duty (APD) which he argued would reduce emissions from aviation. "I have decided to reform APD into a four-band system ensuring that those who travel further and have a larger environmental impact meet that cost," he explained.
Tim Jones, policy officer at the World Development Movement, said the decision not to proceed with a tax on aircraft was "bad news for the UK taxpayer, the environment and the world's poor".