The announcement was greeted with delight by the British Wind Energy Association's CEO Marcus Rand, who said, 'We are delighted that the Government has listened to advice and acted so decisively by significantly increasing the nation's renewables target. It is the icing on the cake of a great year for wind energy.

We will now go forward into the New Year with a massive boost of confidence.'

The UK wind industry already has planning consents in place for new wind farms onshore and offshore equivalent to some 2.5% of the nation's total electricity needs. Awards for a further round of offshore projects are expected to be made before Christmas, potentially equivalent to a further 6% of supply.

The increase in the Renewables Obligation to 15% of total electricity supply by 2015 will require the installation of an additional 5,000MW of renewables capacity. Electricity generated will meet the needs of an additional three million UK homes. Using the latest turbine technology, only 2,000 onshore turbines would be sufficient to meet this target, or a fewer number installed offshore where wind force is greater.

Introduced in April 2002, the Renewables Obligation is seen as the foundation for delivering the Government's target and has prompted unprecedented interest in renewables. In addition to offshore wind farms, wave and tidal power projects are also going forward.

In the first year of the Renewables Obligation, consents for new wind farm developments were equivalent to the combined total built in the previous 11 years.

The UK wind industry now has just under 650MW of capacity installed but a further 2,257MW of consented schemes now await construction. Another 500MW is progressing through the consenting regime under what is referred to as Round One of offshore wind development and some 6,000MW is likely to be awarded under Round Two.

MJ Information No: 18901