Despite fears of sweeping cuts, Rick Eggleston, Managing Director of REpower UK, believes today’s ROC banding announcement by DECC is welcome and will ensure growth remains healthy across the wind sector.
Reductions include a fall of 1 ROC to 0.9 ROC in 2013 for onshore wind, and from 2 ROCs to 1.9 ROCs from April 2015, and to 1.8 ROCs in April 2016 for the offshore wind sector.
Rick Eggleston comments:
“The level of cut in the case of onshore wind is to the lower end of industry expectations, with many of us having predicted something deeper. The reality is that in the case of onshore wind, the industry has achieved significant cost reductions in recent years as the industry matures and becomes more competitive. The cut in ROC level for onshore wind was inevitable, and at 0.9 is at an appropriate level to encourage the industry to drive towards further cost cuts, while reaffirming the UK Government’s commitment to renewables.”
“For us, as a leading turbine manufacturer, this gives us the clear visibility we need over the next 5 years. I also believe DECC’s phased approach to the new levels should result in a degree of stability.”
“In the case of offshore wind, the industry is less mature and cost reductions will take longer to achieve, both in hardware terms, and in installation and operation costs. The delay in reductions to 2015/16 will go some way towards addressing this. The industry is already working with the Government to achieve cost reductions in offshore wind, and this must remain a priority.”
[mappress]
Source: candidmedia, October 21, 2011