Community Windpower urges government to eliminate windfall tax on new projects.
One of the UK’s largest onshore wind producers has called on the government to exempt new development from a windfall tax on renewable generators, claiming it makes investment “nearly impossible”.
Community Windpower is a private company operating eight wind farms in Scotland. repeated threats Unless changes are made to the Electricity Concession Tax (EGL) introduced last year, it will first sue the government in December.
renewable resource, nuclear and biomass companies face a tax of 45% on wholesale income above £75 per MWh under the EGL. The measures, announced by Prime Minister Jeremy Hunt in November, help pay subsidies to partially protect households from rising energy prices following Russia’s invasion of Ukraine.
Community Windpower managing director Rod Wood said the government “has simply refused to engage with EGL in recent months” after the company first threatened legal action over the windfall tax. I’m here.
He added: Shovel-enabled projects won’t build without changes to EGL. ”
Community Windpower is proposing to invest around £1.5bn in new onshore wind power by 2025. It argued the levy was “discriminatory” because it excluded gas and coal-fired power plants. The tax was intended to capture a portion of the “exceptional” revenues by renewable energy generators, which were not affected by the sharp rise in input prices, as electricity prices skyrocketed.
Some low-carbon power companies, including Community Windpower, benefit from a long-standing government subsidy called the “Renewable Energy Obligation” to generate even higher returns.
Community Windpower said it has engaged law firm Mishcon de Reya to consider its legal options if the EGL is not amended in Congress’ upcoming finance bill due in the coming weeks. .
An analysis commissioned by the company shows that even if the government exempts new developments from taxation, the Treasury Department will still source more than 95% of its expected revenue from the windfall tax, which runs through 2028.
The company wants the government to bring forward the date to adjust the 75 MW/h threshold price for inflation from January 2024. Ukraine ”. The tax he took effect in January.
The company said the high inflation environment had pushed the “breakeven point” rate for new onshore wind projects to 83 MW/h, making new projects “nearly impossible” with EGL in place. I’m here.
Wood will also seek renewable development to qualify for offsets against the levy, which could reduce up to 80% of the separate windfall tax on North Sea fossil fuel producers through eligible capital expenditures in the oil and gas sector. It reflects the arrangement of
The government has proposed reforms to planning regulations that have led to a virtual ban on the development of onshore wind farms in the UK since 2015, but the industry says the changes may have little impact. I’m afraid Scotland has a permit to develop onshore wind farms, and he accounts for more than two-thirds of renewable capacity.
The government said the levy was a “temporary measure”, adding: wholesale price”.
Additional reporting by Robert Wright
Summarize this content to 100 words
One of the UK’s largest onshore wind producers has called on the government to exempt new development from a windfall tax on renewable generators, claiming it makes investment “nearly impossible”.Community Windpower is a private company operating eight wind farms in Scotland. repeated threats Unless changes are made to the Electricity Concession Tax (EGL) introduced last year, it will first sue the government in December.renewable resource, nuclear and biomass companies face a tax of 45% on wholesale income above £75 per MWh under the EGL. The measures, announced by Prime Minister Jeremy Hunt in November, help pay subsidies to partially protect households from rising energy prices following Russia’s invasion of Ukraine. Community Windpower managing director Rod Wood said the government “has simply refused to engage with EGL in recent months” after the company first threatened legal action over the windfall tax. I’m here. He added: Shovel-enabled projects won’t build without changes to EGL. ” Community Windpower is proposing to invest around £1.5bn in new onshore wind power by 2025. It argued the levy was “discriminatory” because it excluded gas and coal-fired power plants. The tax was intended to capture a portion of the “exceptional” revenues by renewable energy generators, which were not affected by the sharp rise in input prices, as electricity prices skyrocketed. Some low-carbon power companies, including Community Windpower, benefit from a long-standing government subsidy called the “Renewable Energy Obligation” to generate even higher returns.Community Windpower said it has engaged law firm Mishcon de Reya to consider its legal options if the EGL is not amended in Congress’ upcoming finance bill due in the coming weeks. .An analysis commissioned by the company shows that even if the government exempts new developments from taxation, the Treasury Department will still source more than 95% of its expected revenue from the windfall tax, which runs through 2028.The company wants the government to bring forward the date to adjust the 75 MW/h threshold price for inflation from January 2024. Ukraine ”. The tax he took effect in January.The company said the high inflation environment had pushed the “breakeven point” rate for new onshore wind projects to 83 MW/h, making new projects “nearly impossible” with EGL in place. I’m here.Wood will also seek renewable development to qualify for offsets against the levy, which could reduce up to 80% of the separate windfall tax on North Sea fossil fuel producers through eligible capital expenditures in the oil and gas sector. It reflects the arrangement of The government has proposed reforms to planning regulations that have led to a virtual ban on the development of onshore wind farms in the UK since 2015, but the industry says the changes may have little impact. I’m afraid Scotland has a permit to develop onshore wind farms, and he accounts for more than two-thirds of renewable capacity.The government said the levy was a “temporary measure”, adding: wholesale price”.Additional reporting by Robert Wright
https://www.ft.com/content/25c8ac98-1c0a-4944-86c2-e0e93ce43ee1 Community Windpower urges government to eliminate windfall tax on new projects.