Leading energy companies have called on the government to seize the low cost power on offer from new wind farms and lift the block on onshore developers competing for clean energy contracts.

In a joint letter to Business Secretary Greg Clark released yesterday, 14 renewables companies, including developers ScottishPower Renewables, SSE, innogy, Statkraft, and Vattenfall, as well turbine makers such as Siemens Gamesa Renewable Energy, Vestas, and CS Wind, urged the government to re-think its current policy.

Having previously pledged to end subsidies to onshore wind projects in its manifesto, the government has stopped onshore wind and solar projects from competing at auction for price support contracts known as Contracts for Difference (CfD).

However, the onshore wind industry maintains that plummeting development costs means the sector could table bids for new projects at below wholesale prices, effectively making them "subsidy free".

Yesterday's letter states that "new onshore wind power can be secured at a subsidy-free price", but goes on to explain that the signatories need the certainty provided by contracts to generate power in order to recoup the investment required to develop and build them, to ensure they are financially viable.

It adds that allowing onshore wind projects to compete in auctions would prove popular with the public, with polls showing over three quarters of people support more development.

It also stresses that delivering onshore renewables capacity would help the UK meet its carbon targets and curb costs for consumers who are currently paying to subsidise more expensive forms of clean power.

The signatories offer to "deliver the new onshore wind capacity required to help the UK government meet its climate goals, and provide low-carbon power that will keep consumer bills down", adding that restoring auctions for onshore developers would would provide a payback to consumers of £1.6bn between 2019 and 2025.

"In addition to being the cheapest form of new power generation, onshore wind has the potential to deliver 18,000 skilled construction jobs, 8,500 long-term skilled jobs and stimulate supply chain investment, resulting in 70 per cent UK content in projects," the letter states.

Government Ministers are thought to be divided on whether to clear the path for additional onshore wind farm development, with some keen to take advantage of new cost competitive capacity and others wary of a backlash from those Conservative supporters who oppose wind energy developments.

Ministers had hoped the emergence of a handful of projects set to be built privately using power purchase agreement (PPAs) to attract finance would allow development to continue in the UK.

However, the industry argue the PPA market remains too immature to deliver the scale of new development needed to help the UK meet its carbon targets and maximise the economic benefits from its wind resource.

In their letter the 14 companies argue allowing developers to compete for "subsidy-free" contracts would be compatible with the government's manifesto.

"Facilitating the development of onshore wind is pragmatic and perfectly in line with manifesto commitments, and the view publicly expressed by Scottish Conservatives that there should be support for onshore wind where it is appropriate and local communities support it," it states.

Emma Pinchbeck, executive director at trade body RenewableUK, urged the government to take advantage of the environmental and economic benefits on offer from onshore wind development. "We trust the Secretary of State will take account of the views of these major UK employers who are offering to build subsidy-free projects as part of the clean energy system of the future," she said. "His department's opinion polls consistently highlight the overwhelming level of public support for onshore wind. New onshore wind would be a triple win for consumers, the environment and UK businesses."

Danielle Lane, UK country manager at Vattenfall UK, said it was time to let onshore wind developers compete for contracts. "Why turn down a good deal?" she asked. "Cheap fossil free power from onshore wind that pays back £1.6bn to the British economy. Put onshore wind under the hammer."