United Kingdom Government announced budget in 2016 PV project supported by the

Polaris solar PV net news: on March 16, the United Kingdom Chancellor of the Exchequer George. Osborne (GeorgeOsborne) announced that its 2016 budget, clean energy terms which can be described as ice fire days. By 2020, United Kingdom Government will continue to adhere to contracts for difference (Contract-for-Difference, hereinafter CfD) tenders, grant of £ 730 million subsidies for offshore wind power and other “less developed” technology. But because the United Kingdom Conservative party launch fuel tax of oil and gas, as well as its small modular nuclear reactors (SMRs) support, onshore wind power and photovoltaic projects in the future are still hard to get support from the Government.

Good thing is, United Kingdom in 2016 fiscal budget, the Government indicated in part on renewable, power as high as 4GW tenders will be conducted to support the Pot2 project tender value of 290 million pounds in the first round. Last November, the United Kingdom Secretary of State for energy Ambre. Ladd (AmberRudd) signal, the first round of bidding will be held at the end of 2016.

But if all subsidies will be allocated to offshore wind power projects, given the existence of capacity ceiling, by 2026, 12GW only one-third in the current building plans can support. In addition, because there are no time-specific information, companies in the supply chain it is difficult to plan ahead.

We can be found in the wording of this budget, if the final price is lower than the real price and savings subsidies may not be reallocated to more than 4GW of new capacity, the large level GW offshore wind project is by no means good news. By contrast, the United Kingdom Government budget for 3 of the CfD at present auction can override the Vattenfall company 3.8GW projects announced this week, will hardly leave space for other items.

The next 10 years, United Kingdom Government will take a more aggressive approach to develop offshore wind project’s target price. Past, the United Kingdom Government had issued £ 100 net price of/MWh, but the new budget on March 16 in a project will be put into operation in 2026 price £ 85/MWh (2011), provisional pricing for the next round of auctions for £ 105/MWh.

In contrast, the new price of £ 85/MWh 29% lower than the CfD in the first round, the highest price in the auction. However, we are more optimistic that wind power generation costs will decline further. According to our analysis, on price levels in 2011, we believe that the service will begin within the next 10 years of projects an average cost of £ 66/MWh, and cost £ 69/MWh (example, in 23 years of service, average cost is £ 85/MWh).

United Kingdom Government did not show that the onshore wind, solar and other renewable energy projects can be involved in a future CfD bid. Although “no subsidy” onshore wind power CfD discussion there has been sold at auction, but there is no consensus. According to our latest wind turbine market (WindMarket Outlook), by 2020, the United Kingdom onshore wind project’s annual capacity will be dropped from this year’s 1.7GW to 180MW.

In addition, United Kingdom energy bill (Energy Bill 2015-16) has passed third reading in the House on March 14 this year (thirdreading), and United Kingdom onshore wind power and photovoltaic projects, renewable energy obligations Act (RenewablesObligation) will expire on March 31 in just 17 days, at which time the Bill will be automatically terminated.

United Kingdom Government’s next move may be after some controversy, because the House of Lords must refer to amendments in the House, and after the premature closing of the previous House of Lords vetoed the Bill in the House, are once again premature closing of the proposed amended provisions of the Act. If the expiry date of the Bill can be slightly slower, this will be cut off on April 1 this year, 650MW of onshore wind projects would have good luck in the Centre.

According to 2016 budget statement, carbon emissions (Carbon Reduction Commitment), through mandatory reporting and pricing mechanisms, improve the energy efficiency of large organizations, public or private, but at the same time with bureaucracy, and the heavy burden on the Government’s commitment will be abolished completely. To compensate, United Kingdom tax from 2019 to climate change (Climate Change Levy). However, both of these changes will not bring much to the field of renewable energy.

The oil and gas industry can benefit from tax relief came into effect in January this year. In particular, the current income tax rate in 35% oil (Petroleum Revenue Tax) will be abolished, while another oil and gas companies must pay additional supplementary fee (Supplementary Charge) rate would be halved to 10%.

Original title: United Kingdom Government announced budget in 2016 PV project supported by the Government

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