Environment groups are disappointed with the Budget’s lack of commitment on renewables

From City AM: Environment groups were disappointed by a lack of ambition for renewable energy in today’s Autumn Budget.

The Budget confirmed there would be no fresh funds for new renewable energy projects levied through electricity bills until 2025 to help keep energy costs down.

It said: “In order to protect consumers, the government will not introduce new low carbon electricity levies until the burden of [energy] costs are falling. On the basis of the current forecast, this means there will be no new low carbon electricity levies until 2025. All existing commitments will be respected.”

The Renewable Energy Association (REA) said it welcomes the move to a subsidy-free future, but the industry needs urgent clarity on how the government is planning to bring new projects forward, especially for less developed technologies like tidal and advanced waste-to-energy.

The group also called for clarity around carbon pricing after the government offered little detail on the future of the country’s tax on carbon dioxide emissions from the power sector. The government said it was confident the carbon price, currently £18 per tonne, was set at the right price.

“The UK government seem to be turning their back on renewables by announcing no new support for projects post 2020 and a freeze on carbon taxes. This could see a hiatus in much needed infrastructure development. Considering this is coming only a couple of months after the much vaunted Clean Growth Plan, it’s hugely disappointing,” said James Court, head of policy and external affairs at the REA.

[Read full article on City AM website…]