Renewable energy subsidies 'are not economically sustainable'

02 Dec 2010
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Renewable energy subsidies 'are not economically sustainable'

The coalition government in the UK needs to come up with another way to stimulate investments into renewable energy in the country.

This is because its current model of offering subsidies to companies is not "economically sustainable", according to Dr John Constable, director of policy and research at the Renewable Energy Foundation.

He explained that both wind power and solar energy are both currently "heavily" subsidised by the state and this cannot continue into the future.

"We will only be on the verge of a renewable boom when government can withdraw subsidies because the industry is fundamentally economic," he said.

Dr Constable added that rather than stimulating renewable energy developments, subsidies actually harm the industry.

He was commenting after a Public Accounts Committee report stated that the Department for Energy and Climate Change is going to miss targets set for the end of this year relating to the generation of renewable energy

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