In yesterday's Sunday Telegraph it was revealed that wind power investors are expecting a 40% increase in subsidies to existing wind farms (and those built before 2017) due to the effects of the Carbon Price Support (sometimes called the Carbon Price Floor) that will be introduced in April.1
The Renewable Energy Foundation (REF)2 has seen the leaked Barclays investor briefing reported by the Sunday Telegraph. This document predicts the effect of the Carbon Price Support will be to boost renewables subsidies by an extra £20/MWh within a matter of years. This is an increase of more than 40% on the index-linked subsidy under the Renewables Obligation which is currently about £45/MWh.
REF calculates that the extra subsidy paid to operational wind farms and those likely to be built before 2017, when the Renewables Obligation closes, will reach £1 billion a year around 2016/2017, with about half this going to onshore wind farms.