REA demands end to ‘piecemeal policy’ for renewables

The Renewable Energy Association (REA)'s chief executive Dr Nina Skorupska has demanded the end to the government's "piecemeal and ad-hoc" approach to renewables and for it to set out a clear policy framework.

Skorupska warned that the government’s current approach to announcing renewable policy will undermine investor confidence in renewable projects because it is being given “very little notice” on the changes that are being made to the subsidy regimes.

She made the statement after rumours surfaced on Friday that a cut to renewable subsidies, particularly for solar, will be announced shortly, and following the scrapping of levy exemption certificates (LECs) for renewable generation in the budget earlier this month.

Skorupska said: “There is a lot of rumour and speculation going around the industry at the moment. What we want to hear from the secretary of state and from other ministers in government is what exactly is the overall context and framework for the decisions.

“We want to understand how all these different elements will still deliver a cutting of emissions and a low carbon energy future. It cannot be done in this piecemeal ad-hoc way which undermines investor certainty.”

She added: “It’s very concerning not knowing what more we will hear before parliament goes into summer recess and what the timings are for the key policy activities. No industry can sensibly have important conversations with their investors when you see actions like the announcement regarding LECs.”

The move to scrap LECs could be implemented as early as August, raising £450 million in the current financial year, according to the budget statement.

A cut to renewable subsidies was also expected to be made in the budget by the Conservatives as reports suggest the Treasury is seeking to cut the financial burden shouldered by energy consumers due to spiralling low carbon support costs.

Skorupska said she expects the energy secretary Amber Rudd to reveal further her plans for the transition to a low carbon future in her first meeting with the energy and climate change committee tomorrow.

But she warned that the government’s “cost-effective” approach to renewables means there is “a high risk that more of the most cost-effective renewable technologies (such as solar) will also come under a knee-jerk action to reduce costs that would essentially bring future deployment of many those technologies to a grinding halt and cost the government significantly more in the long run.”