Offshore wind firms pledge billions of new investment

Two companies involved in building offshore wind power in the UK have pledged to continue to invest billions of pounds in the coming years, as subsidy cuts undermine the case for rival renewable energies.

Dong Energy, the biggest operator of offshore wind farms in the UK, told The Guardian it would double the £6bn it had invested adding new capacity in recent years by 2020. Another company, Sweden-headquartered Vatenfall, said it too was "optimistic" about 2016 and will be proceeding with a testing site for its latest farm off the coast of Aberdeen this summer.

Brent Cheshire, Dong's UK division chairman, said he "had harboured concerns about government policies as little as two months ago", but that a recent speech by energy secretary Amber Rudd, during which she pledged support for offshore wind power as long as costs were kept down, had given him confidence.

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Rudd's comments should mean current subsidies are secure, which Cheshire said was crucial as hopes offshore wind will be subsidy-free by 2023 are "over-optimistic".

The government has been coming in for fierce criticism over cuts to subsidies for a whole range of renewable power options, which have come even as the UK has signed up to an international deal to help prevent catastrophic climate change that is exacerbated by carbon-intensive traditional power generation.

In particular the government was criticised for cutting the subsidies on small-scale solar power generation, which was said to be behind the collapse of two firms and the loss of around 1,000 jobs. It has also cut support for onshore wind and put approval for new projects in the hands of often-recalcitrant local communities, despite this becoming the cheapest way to produce electricity in the UK.