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The UK government lacks a credible energy policy and risks the country’s security of energy supply by making decisions “on the hoof”, according to the former chief executive of SSE.
Ian Marchant hit out at the new Conservative government saying it is “institutionally incapable” of delivering policy which can support the UK’s security of energy supply.
“The question is: do we have an energy policy? And the answer is no,” he told delegates of a British Institute of Energy Economics event.
“We’re defining policy by the word ‘no’. I haven’t heard any vision of what ‘yes’ might look like.”
Marchant’s criticism follows months of government intervention in renewable energy support through cuts planned for both large and small scale renewables projects. He also slammed the government for failing to provide an impact assessment for its panned cuts to the Renewables Obligation (RO) until two months after its announcement, in what he called a “ready, fire, aim” approach.
“They’re doing it on the hoof,” he told delegates.
The need for effective policy to bring forward investment is key, he added. Marchant said the three major coal plant closures which have taken place in recent months contributed 6 per cent to the UK’s generation mix last winter, asking: “Where will that come from now? Since 2010 we have started construction on one CCGT in this country.”
Marchant also took aim at the government’s drive to secure investment for the Hinkley Point C new nuclear project, saying its reactor design is too expensive and a “proven failure” in other countries.
“It’s an interesting situation for a country to find itself in, saying ‘the first two [reactors] are so over budget and over schedule that we’d like the third, please’.”
But Marchant said that in his personal capacity he still intends to invest in the energy market, but will focus on “disruptive” technologies including distributed energy and storage.
“I think the thing that has surprised me most is the dramatic cost reduction in solar where, on the residential end, we are almost at grid parity. That’s part of the answer.”
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