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DECC moves to diffuse wind subsidies row

27 June 2012

The Department of Energy and Climate Change (DECC) has moved to diffuse a row that has been brewing regarding renewable energy funding after cabinet office minister Oliver Letwin said subsidies for both solar photovoltaic and onshore wind would be reduced to "zero".

In an email obtained by the Sunday Telegraph, Mr Letwin said subsidies "should have disappeared by 2020" but this reportedly angered energy and climate change secretary Ed Davey, who is worried about scaring off investors.

However, the DECC has since stepped in and declared that no time frame has been established for removing financial incentives.

"The government is committed to driving down the costs of renewables. It is encouraging to see that costs of some technologies are falling," it told the Guardian.

"If costs fall so that subsidy were not needed for any specific technology, this would be welcomed, but it is not currently clear when that might be."

Posted by Emily Thomas

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