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Tuesday, July 28, 2009

Wind power boosted by £1bn in new loans

The UK government will demonstrate its willingness to exert influence over Royal Bank of Scotland and Lloyds Banking Group by announcing £1bn of lending to wind farm developers whose schemes have been becalmed by a lack of cash.

The initiative comes as Greenpeace unveils new figures showing that local councils run by the Conservative party block more than three times as many wind farms as they approve. Labour-controlled councils meanwhile approved marginally more projects than they turned down between December 2005 and November 2008, according to the campaign group.

Both issues are important because Vestas, the UK's only major wind turbine maker, is threatening to close its manufacturing plant on the Isle of Wight this week blaming some of its woes on "faceless nimbies" and a lack of a vibrant domestic market.

The £1bn cash arranged by the government is part of the additional £4bn of EIB lending to support UK energy projects announced in the spring budget. The government has been urged by environmentalists and thinktanks to use the state equity stakes in banks – gained when they had to be bailed out last autumn – to push them towards green projects.

Greenpeace claimed last night that its study of publicly available information provided to the Department of Energy and Climate Change (DECC) showed that Tory councils approved 44.7 megawatts of onshore wind schemes but blocked 158.2MW. Labour-controlled councils approved 68.3MW and rejected 62.6MW.

"One of the reasons Britain's green industrial revolution is yet to take off is the lack of domestic demand for wind turbines, and a key reason for that has been the attitude of many Conservative councils," said John Sauven, Greenpeace's executive director. "They need to be offered incentives to stop blocking wind developments, while David Cameron could make a difference straight away by making a crystal-clear commitment that a Tory Britain would meet the target to generate 20% of our energy from renewables by 2020."

SOURCE : guardian.co.uk


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