Wind News

Monday 27 July 2009

The government has been under growing pressure to save the Vestas facility on the Isle of Wight

The Department for Energy and Climate Change has today (July 27) announced extra finance for the UK wind power sector, which includes over £6 million being made available for Vestas' Isle of Wight facility.

Firstly, three UK-based banks are set to work with the European Union's financing institution, the European Investment Bank (EIB), on a programme to lend up to £1 billion to onshore wind farms over the next three years, to help building commence on projects adversely affected by the credit crunch.

The banks - RBS, Lloyds and BNP Paribas Fortis - have been teamed up with the EIB by the Department for Energy and Climate Change (DECC) and HM Treasury following a pledge in the Budget 2009 that government would supply an additional £4 billion in EIB funding to UK energy projects (see this newenergyfocus.com story).

Loans are set to be available for eligible projects in the autumn once the banks have agreed all the funding arrangements with the EIB, which is planning to make up to £600 million of its own money available to match the banks' lending.

Offshore

Secondly, DECC has announced a grant scheme for offshore wind projects. In the second round of development funding for the sector, the department has made up to £10 million available as part of the £120 million announced in the Renewables Energy Strategy (see this newenergyfocus.com story).

Commenting on both schemes, energy and climate change secretary, Ed Miliband, said: "Earlier this month we laid out a transition plan to a low carbon economy that included a massive expansion of green wind energy. The resources we are announcing back up our plans with clear actions to ensure we deliver.

"The European Investment Bank funds will help the building start on consented wind farms that could provide 1 gigawatt of electricity, enough to power more than half a million homes. The money for the development of offshore wind manufacturing will help us generate green jobs on top of our success as the leading country in the world for the generation of offshore wind.

"Alongside these proposals, we are reforming planning laws, finding new ways of working with local communities and are determined to persuade people that we need a significant increase in onshore wind as part of the UK's future energy mix. That is essential for the generation of renewable energy and for Britain to have an industrial future in the production of onshore wind," he added.

Vestas

DECC also confirmed today that - subject to agreement on suitable grant offer conditions - it will be making an award in the region of £6 million under the first round of the offshore wind grants programme to the Vestas Technology research and development facility on the Isle of Wight.

The funding, which would include £3 million from the South East England Development Agency, comes against growing pressure for the government to intervene to help save the wind turbine manufacturing facility, which is subject to on-going industrial action as workers occupy the turbine manufacturing facility to protest against its closure (see this newenergyfocus.com story).