THE Government last night boosted its support for offshore wind in a move that has been hailed "an extremely important step forward" in the campaign to secure the Siemens deal.
Chief Secretary to the Treasury Danny Alexander announced the Government would cut support for onshore wind and solar energy but give more backing to offshore wind.
In his statement to Parliament, he unveiled a strike price for renewables, which is the amount the Government guarantees to pay per unit of electricity.
Under the new provision, the Government guarantees to pay offshore wind developers the difference between wholesale power prices and a fixed strike price of £140 per megawatt-hour (MWh) for the 2018-19 fiscal year – £5 more than its provisional subsidy figures in June.
The announcement gives clarity to investors, who can now calculate their guaranteed returns on renewable energy projects to the end of the decade.
Welcoming the announcement, Hull West and Hessle MP Alan Johnson said: "This is an extremely important step forward in the quest to reassure the sector that there remains a consensus around the need for offshore wind so that those companies, such as Siemens, who are contemplating long-term investment can do so without fearing future change in government policy."
Hull North MP Diana Johnson said: "I hope the strike price announcement for offshore wind generation is enough to provide a further piece in the jigsaw that allows Siemens to make that final commitment to jobs for Hull.
"Green energy investors need to be reassured about the stability and long-term nature of UK Government backing for green energy – avoiding the mixed messages that we've seen over the past three years."
Hull East MP Karl Turner said: "I welcome any policy that will help to seal the deal with Siemens.
"This is welcome news for the offshore wind industry and very helpful for Green Port Hull."
The announcement came just days after Hull's three Labour MPs and Lord Haskins, chairman of the Humber Local Enterprise Partnership, met Energy Secretary Edward Davey to discuss plans to finalise investment in the Siemens £210m development at Alexandra Dock.
