Doubts about the UK Government's long-term energy policy and competition from abroad are threatening Britain's wind power industry, according to consultants Ernst and Young.

The UK has slid from the first to the third most attractive place to invest in wind power, falling behind the US and Spain.

Five million tonnes of carbon dioxide are released into the atmosphere as a result of household appliances being left on stand- by in the West Midlands alone, and rising emissions throughout the UK have forced the government to rethink its energy policy.

The UK is dependent on an expansion of wind power to help meet targets for reducing emissions of greenhouse gases, which are widely blamed for causing global warming.

The first commercial offshore wind farms are in operation and further projects are planned. Green power schemes are subsidised by the renewables obligation scheme which will run until 2015, and obliges suppliers to buy proportion of theirenergy from green sources. However, the Government's decision not to extend the renewables scheme beyond 2015 has left projects struggling.

Jonathan Jones, of Ernst and Young said: "Offshore wind already faces rising costs from manufacturers and high grid connection costs but now the sector could struggle to secure project financing due to cash flow uncertainty