The UK government has recently announced a plan to establish a limit of £200m a year on subsidies to some of the major forms of renewable energy, affecting in this way the funding of large-scale low-carbon installations from wind and solar farms to biomass-burning power plants. In relation to the new plan, the money will be available under the new contracts for difference that subsidize renewable energy companies who offer electricity at a lower rate of carbon emissions than fossil fuel generators. According to the secretary of state for energy and climate change, the reform represents an instrument to boost the market for renewable energy, reinforcing growth and jobs, and powering secure electricity infrastructure for the future. In this way, the government has launched a plan to reform the electricity markets, trying to reduce the cost of decarbonizing the power sector to consumers. Related to that, the government has estimated that there would be 250,000 jobs in the low-carbon energy sector by the end of this decade. However, some renewable companies have warned that the plan will translate in a large reduction in the support they receive, undermining the possibility to establish low-carbon installations in the next future. In line with this, the Solar Trade Association has stressed that the plan would result into a cut in large-scale solar installations of about 65% to 80% next year. Moreover, some experts have highlighted that the draft budget risks represents an insufficient mechanism to drive industrialization, competition and cost reduction. Due to its complexity, the new plan will also undermine smaller companies that will have to compete with multinationals for the funds available. In this framework, the Renewable Energy Association has outlined that it is fundamental that policymakers will undertake adequate measures allowing that the most cost-effective sectors such as biomass, solar, and onshore wind are given sufficient budget to reduce short-term costs for consumers. The gLAWcal Team The EPSEI project Saturday, 26 July 2014 (Source: The Guardian)