The energy from waste sector should be taking note of the surprise announcement by the Department for Environment and Rural Affairs (DEFRA) that provisional funding under PFI arrangements for credits (worth around £60 million) for three Energy from Waste projects is being withdrawn.
The decision affects three major projects at Bradford and Calderdale, North Yorkshire and on Merseyside. The credits are vital to the financing of schemes; effectively subsidising capital costs. It also appears that Minister for Energy, John Hayes, was not forewarned of the decision. He has reportedly pledged to take up the issue with DEFRA.
This follows after our Energy eNews in March reported that the Department for Business Innovation and Skills invested around £50 million in six wind farms. This was done under the nose of the DECC who continue to state that the government will not directly subsidise the market and that infrastructure investment will be funded by consumers.
For more information, help or advice please contact our Energy Team on 0191 211 7777 or email [email protected].