Green supporters unsure over funding for offshore wind projects

Four miles off England’s eastern coast, a floating crane can be spotted installing the last of the 48 wind turbines. The 40-storey tall pinwheels are driven by two bountiful resources: ocean breeze and public funding.

The UK government’s financial backing turns renewable energy market into a big business opportunity. Even though fossil fuels continue by far as the leading energy source and generates huge revenues, the government’s continued support is making renewable energy a lesser risk for investors than conventional fuels.

Dong Energy chief executive Anders Eldrup said that wind farms can generate better returns than coal-powered plants. As outcome, the Denmark-based Dong Energy is scheduled to shutdown its coal-fired plants, including Gunfleet Sands in the UK, to build wind farms instead. The energy company is planning to start its offshore wind farm construction by next year.

However, critics are saying that energy subsidies are just a waste of taxpayer’s money. Even the supporters of renewable energy worry that the needed funding for offshore wind projects is over the limit.

Green advocates however say that grants are required for renewable energy sources to compete with fossil fuel. But they are just concerned that the society, in its hurry to install solar panels, wind turbines and other green energy sources, will be giving more subsidies without reaching the targeted energy generation levels.

Almost all energy projects have subsidies. Fossil fuels, which today provide 80 per cent of the global energy needs, have long enjoyed complimentary tax breaks and other government incentives. The International Energy Agency’s 2007 assessment estimated that a total of $310 billion subsidies in developing countries have been given to fossil fuel alone.