Energy firms warn on green energy cuts - 21/10/2011
Changes to the government's policy on renewable power, which will see subsidies for some forms of green electricity cut, have been met with caution by some of the country's biggest energy suppliers.
While the updates to the Renewables Obligation scheme announced this week will see additional funding allocated for technologies such as tidal and wave energies, this will come at the expense of wind technologies, where market costs have reduced in recent years.
The Financial Times reported that this has led to Centrica, - the owner of British Gas - and Drax, the country's biggest coal-fired power generator, warning they will have to review their renewable plans.
Centrica said: "We need to re-examine the economics of the projects we have in our planning pipeline, including our next two offshore wind projects."
However, neither firm said it would scrap developments as a result of the changes and the news provider noted the renewables industry largely welcomed the new regulations, which are due to come into effect from 2013.
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