Subsidies in cheap energy sector 'do not encourage development' - 01/12/2010
Customers will only be able to use cheap electricity derived from renewable sources on an "economically sustainable" scale when the government can withdraw heavy subsidies, the Renewable Energy Foundation has argued.
Dr John Constable, director of policy and research at the organisation, commented that without such financial support, technology such as solar photovoltaic generation and wind power could not be developed.
"Heavily subsidised sectors are invariably plagued with weak companies and poor products," he insisted.
"We will only be on the verge of a renewable boom when government can withdraw subsidies because the industry is fundamentally economic."
His comments come after the Public Accounts Committee pointed out that the Department for Energy and Climate Change is unlikely to hit its target of sourcing 15 per cent of cheap energy from renewable sources by 2020.
Dr Constable added: "The sad truth is, however, that subsidies actually arrest development; if you don't take the stabilisers off the bike, the kid will never learn to ride."
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