According to a new report, the UK is paying about four times for its wind energy than Brazil due to the uncompetitive subsidies in the country.

The new report by the Policy Exchange called for the government to deliver on its promise to cut costs within this decade. Estimates showed that UK families paid £95 per MWh for onshore wind compared to £27 MWh in Brazil. The report said that the government should organise an auction of renewable technologies in order to allow the industry to compete for the state benefits.

The report suggested that the process can begin next year for projects which would begin in 2017. Government is aiming to introduce energy auctions in 2018 for projects that are set to begin after 2020. Energy Minister Michael Fallon is planning to release detailed plans on how to make subsidies more competitive.

Experts had warned that the policy could encourage onshore wind-farms as they are cheaper to operate than the offshore wind farms. However, government officials said that it more difficult for the onshore wind-farms to get state subsidies as they will be subjected to constrained allocation of subsidies.