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Eye read that...
...Francis Maude 'whispered', just before Christmas, his plan to fund uneconomic windfarms by forcing the Government Procurement Service (GPS) to buy electricity from them at above-market rates...GPS will now be forced to underwrite projects so uneconomic they cannot attract finance even with the lavish level of subsidy already available, by offering 15-year purchase contracts at prices high enough to make them bankable...The governments own Department of Energy and Climate Change set out reasons for the lack of suitability in a consultation paper last year. The contracts, it said, "allow renewable developers to transfer market risks [such as] wind forecasting risk away from their projects" - on to the buyer. "These liabilities...could put a [buyer's] credit rating at risk".
Maude claims this will save taxpayers money.
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