Government decisions to rein in subsidies for renewable energy projects have led to the shelving of a projected hydro-electric generator for Saltaire, Bradford Council said today.

The local authority said recent Government announcements about reductions in subsidies, coupled with a sharp fall in electricity prices have rendered the project no longer economically viable.

Figures worked out by the Council show that the Government changes would lead to a 25 per cent reduction in the annual income of the generator, meaning it would take around 20 years to pay for itself, rather than the earlier estimate of 10 or 12 years.

The £1.2 million project would have seen a water driven Archimedes Screw turbine installed on the Roberts Park side of the River Aire at the Saltaire weir.

It would have generated enough power to supply 100 homes for the next 20 years.

Coun Val Slater, Deputy Leader of Bradford Council, said: "The proposed hydro-electric power generator project on the River Aire at Saltaire has been shelved due to reductions in Government subsidies for renewable energy.

"It would not be cost effective on behalf of the Council Tax payers of Bradford to carry on with the project at this time.

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"The Council is still committed to reducing the district’s carbon emissions and maximising the opportunities for sustainable energy generation, but this is not the right economic climate to continue with the Saltaire scheme.”

"If the economic conditions change in the future it may well mean that a hydro-electric generation project at that location can be revisited.”