Subsidy increase does little to appease renewable energy investors

By IVCPOST Staff Reporter

Jun 28, 2013 12:25 PM EDT

Investors on the renewable energy sector should take caution. The market investments are being considered risky despite the upward trend in subsidies for wind farms. The reason, analysts say, is the increasing uncertainty in policy within the sector.

These subsidies are padded to the bills of energy consumers. Along with the 10% increase of the subsidy via government reforms, uncertainties with the new governing body warrant an increased fear of flopping in the renewable energy field.

Turbine operators and manufacturers stopped the inflow of investments, amounting to an enormous loss estimated to be within £10 billion. They have been holding off on investing due to unstable conditions of subsidies, which they fear will be decreased to unsustainable levels.

Secretary for energy and climate change Ed Davey said that the new regime would bring about a better investment atmosphere - an easy climate despite the subsidies being tolled from them. This will also cut back spending of households by an estimated £5 billion by the year 2030m. 

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