U.K. Wind-Farm U-Turn Avoids Possible Pitfall in London Court

(Bloomberg) -- Britain’s decision to restart subsidies for onshore wind farms avoided a potential pitfall after a late settlement on a court case, which the judge said would put the country in a better position to deal with climate change.

The government and a wind farm developer, Banks Renewables, reached an accord Friday just before Judge Neil Garnham was to read his verdict. Garnham didn’t detail his potential ruling, but said withholding his decision meant the U.K. had a better chance at reducing emissions.

The Conservative-led government this month reversed its position on land-based wind farms, lifting a four-year ban on subsidies, in a sign that ministers are looking for more ways to meet a goal of net zero emissions by 2050. The government cut support to the technology after residents in rural areas said that more installations were blighting the visual appeal of the countryside.

“The withdrawal of this claim by consent gives legal certainty” about the government subsidies program “that serves to improve the prospect for renewable energy,” the judge said. He didn’t give details on what would’ve been in his written ruling.

The two sides asked Garnham not to release his judgment, saying that it might damage the U.K.’s support for renewable energy projects and hurt the country’s chances of meeting emissions targets. The government will pay the costs of Banks Renewables as part of the settlement agreement, Gerry Facenna, a lawyer for the business department, said Friday in court.

The cut in subsidies to onshore turbines ran against the grain of efforts to rein in fossil fuel emissions, with wind advocates noting it is one of the cheapest forms of renewable energy. The capacity of new wind farms sited on land slumped to the lowest levels since 2015 last year after policies to curb the industry took hold.

Banks Renewables said that the prior subsidy mechanism discriminates against onshore wind and other renewable technologies in favor of wind turbines on water.

“The secretary of state’s request for judgment not to be delivered is not motivated by narrow tactical or strategic considerations,” Facenna said. The prospect of further litigation would damage the existing subsidy regime and billions of pounds of investment, he said.

The U.K.’s decision to support onshore wind farms means developers will be allowed to enter more wind projects into future auctions for contracts-for-difference, which guarantee a price for power from the facilities.

“We are pleased this case has been withdrawn and we look forward to the fourth round opening next year,” the business department said in a statement.

--With assistance from Jeremy Hodges.

To contact the reporter on this story: Jonathan Browning in London at jbrowning9@bloomberg.net

To contact the editors responsible for this story: Anthony Aarons at aaarons@bloomberg.net, Christopher Elser, Reed Landberg

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