Wind farm subsidy cuts and possible exploitation of Greenland

Posted: 01/08/2012

Following Pali’s previous blog Decisions, Decisions… End fossil fuel subsidies or cut wind farm subsidies? which talks about the debate between cutting fossil fuel subsidies or wind farm subsidies.

The Government has chosen to cut wind farm subsidies at 10% after a debate between Ed Davey and the Energy and Climate Secretary. They also agreed that the spare funding will benefit local communities but this decision will be reviewed in two years.

The benefits to the communities include cuts to electricity bills which the Government is hoping will encourage community owned wind turbines.

Mr Davey also announced that he will be doubling the amount of subsidies for wave and tidal technologies and the subsidies for the offshore wind farms will not be considered for cuts until 2015.

It is hoped that the 10% cut to onshore wind subsidies will not discourage investors because the cuts will only affect them if there is clear evidence of falling costs.

In other news, the melting of the ice in Greenland due to four exceptionally hot days in July has caused the European commission’s vice president to consider exploiting the countries natural resources.

The melting of the ice has opened up a potential gold rush which has caused concern for the environment due to pollution which could destroy the Arctic, one of the worlds last remaining wildernesses.  

Unfortunately, Greenland’s Government are keen to exploit their islands natural wealth in order to provide money for their poorer communities. Currently, there's only one company operating in Greenland which are mining for gold and exploring a further 120 sites. Greenland is thought to contain a vast amount of minerals including rare metals as well as iron ore and gemstones.

What are your thoughts on the cuts to wind farm subsidies and possible exploitation of Greenland’s mineral wealth?

Amanda McGovern, Pali Ltd

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(0) Comments wind farm, wind turbine, subsidies, mining, Government

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