The Government has agreed to change the rules of its renewable energy subsidy plans to support new onshore wind power projects which are built on remote islands.

The new legislation has emerged after years of industry calls to exempt island wind projects from the Government’s crackdown on new onshore wind developments on the grounds that they are more similar to their offshore counterparts which do qualify for subsidies.

The regime tweak will allow developers including SSE and EDF Energy to compete for support against offshore wind developments and biomass heat and power plants for a share of the £557m funding pot in an auction next Spring.

Emma Pinchbeck, of RenewableUK, welcomed the Government’s confirmation that island wind will be included in the next auction for renewable power contracts.

“Island wind, like other renewables, is popular with the public and is a home-grown form of clean power,” she said.

“The Government has also said that it is considering ending the effective ban on new onshore wind in other parts of the UK which want it, because it is the cheapest form of new power available,” she added.