RenewableUK Hails Strong Framework for Investment

RenewableUK, the trade and professional body representing the wind and marine energy industry, has welcomed the long-awaited publication of the Energy Bill.

Introducing the Bill to Parliament today, the Energy and Climate Change Secretary, Edward Davey, said it would attract investment to bring about a once in a generation transformation of our electricity market, moving from fossil fuels to a low-carbon generation mix.

RenewableUK’s Director of Policy, Dr Gordon Edge, said:

 “Now that we’ve been able to read through the long-awaited details of the Bill, it’s clear that they provide a strong framework for investment. RenewableUK is looking forward to refining those details with the Department of Energy and Climate Change during the Bill’s passage through parliament.

 “So far this bill is on track and on schedule, but we can’t afford any slippage if we are to avoid a hiatus in investment around 2017, when the financial support mechanism switches from the Renewables Obligation to Contracts for Difference.

 “The Bill provides welcome clarity on how CfDs will be allocated, reducing the financial risk to developers. We also welcome the move to set up a Government-backed body, or counterparty, to write the contracts. This will decrease risk and lower the cost of capital. On initial reading, there are some other terms which may need further clarification – for example we want to make sure that if any significant changes are made to the regulatory environment in the future, developers who’ve signed contracts should not lose out financially.

“Looking ahead, we’re awaiting with great interest the Government’s draft Delivery Plan, due to be published in July, which will contain crucial proposals on the strike price – the amount that renewable energy generators will actually receive for every megawatt hour of electricity they produce. That’s the next silver bullet to unlocking the investment the UK needs in the long term”.

 Earlier today Maf Smith, Deputy Chief Executive of RenewableUK said:

 “This Bill is crucial in setting the investment framework for the next 20 years and ensuring that we can build on our current world lead in offshore wind and marine technologies, and guarantee clean domestic power and tens of thousands of green jobs”

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Press release, November 30, 2012