The Government has come under fire from the Westcountry wind, wave and tidal energy industries after it delayed a key announcement on cuts to subsidy payments.
A decision on whether onshore wind energy subsidies should be cut by 10%, as the Department of Energy and Climate Change (DECC) has proposed, or by 25%, as the Treasury wants, was expected this week.
However, the two departments are still arguing over the changes and the decision has been deferred – potentially for months.
Reform of the funding regime was announced in October and looked set to put the wave and tidal industry in England and Wales on a par with Scotland – the region's main rival for jobs.
Under the proposals, support for the UK's nascent wave and tidal energy sector – which includes the pioneering Wave Hub in Cornwall, potentially the world's largest commercial wave energy terminal – would increase to two-and-a-half times the current level.
Industry body RenewableUK has urged an urgent resolution to the row over the Renewables Obligation banding levels.
Chief executive Maria McCaffery said there was "no case" for cutting beyond the 10% originally proposed. "Any further delay in an announcement could have a devastating impact on investor confidence, job creation and the deployment of clean energy," she added.
"It would be unacceptable if the decision were to be delayed until September as it is imperative that investment and job creation are not harmed in one of our key growth sectors."
Ministers have earmarked the South West as the UK's first marine energy "park", which could be based across a number of sites in Devon and Cornwall.
Regen SW has identified 350 South West companies able to benefit from the offshore renewables industry, employing between 350 and 500 people.
Chief Executive Merlin Hyman said "clarity and consistency" were required if the offshore sector is to create 5,000 jobs from 2025.
Green energy developers get subsidies based on the amount of power they produce under Renewable Energy Certificates (ROCs), funded through household energy bills.
Developers behind wave and tidal schemes were set to get five ROCs per megawatt-an-hour of energy – the same as Scotland – rather than just two.
