Renewable energy investments delayed by government review

Published in Energy on

A review has been launched into delays in the subsidy regime which is meant to support the UK’s renewable energy infrastructure.

The Guardian reports that renewable energy companies are becoming increasingly concerned that the delay of the Renewables Obligation Certificate (ROC) reforms could cause the government to rethink its investment.

This news means that renewable energy producers are currently unable to make long term plans for future projects, and could be very damaging to the future of the industry.

The review will consider how subsidies will be banded; using support levels based ob consumer energy bills, rather than the government purse.

While the government recognised the need to bring the consultation forward, the timetable that has been suggested is impossible to stick to. It is unlikely that the review will be complete before the end of the current parliament, and investors are beginning to worry that it could be the start of a longer delay.

Biomass is the fuel most at risk, because the current rates of subsidy are considered to be uneconomical.

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Comments (2)

  1. An investment in an industry that relies on an artificial market governed by the whim of a government is a very risky one indeed.
    If history teaches anything, Government and markets don’t mix.

  2. There are major questions around anaerobic digestion based on growing crops to fuel it that need to be answered. Land that is currently growing food crops is already taking CO2 out of the atmosphere. So replacing those hectares of food crops with crops for energy production is not a gain in climate terms. Furthermore in the face of a looming World food shortage, taking large lumps of land out of food production for low climate change gain energy crops is a highly risky policy. AD from waste yes, AD from crops no.