Consultations heap more misery on battered Renewable Energy industry

alt tag goes here

News article

Consultations heap more misery on battered Renewable Energy industry

July 2015

renewable energy news

Consultations heap more misery on battered Renewable Energy industry

Just when renewable energy stakeholders thought the industry outlook could not get any bleaker, Energy and Climate Change Secretary Amber Rudd on Wednesday (22 July 2015) launched further consultations outlining proposals which could heap yet more misery on the already battered sector.

With investors, developers, landowners and more still coming to terms with the implications of the year-early closure of the Renewables Obligation (RO) for onshore wind projects, changes to the National Planning Policy Framework (NPPF) making obtaining planning permission more challenging, and the removal of the Climate Change Levy (CCL) exemption, the Government has today put forward “measures to deal with a projected over-allocation of renewable energy subsidies”.

The measures include the early closure of the RO for new solar PV projects of 5MW and below from 1 April 2016, removal of the guaranteed level of subsidy for the duration of the RO for projects in England and Wales (known as grandfathering), and ending of the preliminary accreditation process for the Feed-in Tariff (FIT) scheme.

The primary rationale for the changes is to control spending under the Levy Control Framework, put in place to ensure the costs of renewable energy incentive schemes do not put undue pressure on consumer energy bills. The Government anticipate forecast spending in the Framework to increase by £1.5 billion over the next 5 years. 

Darren Edwards, a Partner at leading renewable energy consultants Fisher German, said “the implications of the consultations published today cannot be underestimated and add yet further uncertainty to what in recent weeks has become an increasingly unstable marketplace – both for UK stakeholders and global investors into the UK renewable energy market.  The RO has been the key driver behind the huge and successful growth of the solar industry in the UK over the past 5 years – adding a mere £3 per year to the average energy bill – so destabilising an industry for such a minimal gain seems folly.  It is our intention to make strong representations to the Government on all measures announced today in an effort to protect the interests of our clients.”

Mr Edward’s went onto add “the proposal to remove pre-accreditation for the FIT means Amber Rudd’s announcements will not only affect proposed commercial scale projects, but also domestic and industrial schemes, so the ramifications are widespread.  Pre-accreditation was pivotal in allowing for forward planning, giving stakeholders much needed certainty, so it’s removal will be a killer blow for many early and mid-development FIT schemes.”

Mark Newton, Head of Fisher German’s renewable energy sector adds “it is a great pity that the Government do not want to support proven renewable technologies when the UK’s energy production is becoming very marginal, with the risk of the lights going out this winter.  Instead they are proposing to rely on new nuclear plants  and fracking, but the fact that Hinkley Point C has still not got funding and fracking sites cannot get planning approval mean neither of these alternative sources of energy that the Conservatives said they were relying on in their manifesto will produce anything in the next 5 years at the earliest.  The proposals will kill off solar parks for another 3-5 years until the costs come down so it no longer requires any subsidy.  The country desperately needs renewables to fill the energy gap and it is a pity that the Government does not want to support them.  There will be a big rush before the end of March 2016 to get 5MW solar parks built and commissioned.”

Anyone concerned about the implications of today’s announcements on their renewable energy project, or anyone wanting specialist advice can contact Darren Edwards on 01858 411 236, email here or Mark Newton on 01858 411 215, email here

 

latest news

latest news

alt tag goes here
alt tag goes here
forthcoming events

forthcoming events

alt tag goes here
Lorem ipsum
Copyright © 2015 Fisher German    All rights reserved   |   Privacy Policy  |   Site Map   |    Accessibility                                                            Created by Supadü
alt tag goes here
Site Search
Awards logo - winner
facebook-social-icon
facebook-social-icon