Green growth is at “severe” risk unless the government prioritises vital measures in the Spring Budget, five energy trade associations have warned today.
In a letter to Chancellor Jeremy Hunt, the bosses of RenewableUK, Energy UK, the Nuclear Industry Association, Scottish Renewables and Solar Energy UK said: “Despite our industry’s commitment to the low carbon energy transition, we are concerned that there is no clear government plan to deliver green economic growth and continue attracting clean energy investment into the UK.”
The trade associations are calling for key steps in the Spring Budget to address this, including a reform of capital allowances and financial incentives for investment in low carbon energy in response to those being offered by the US in its $216 billion (£176bn) Inflation Reduction Act and the European Union in its REPowerEU package.
The letter states that: “With many clean energy projects already delaying Final Investment Decision and supply chain companies squeezed by the energy crisis and inflationary pressures, a tangible step like enhanced capital allowances announced in the Spring Budget will do more to persuade investors than the promises of a future plan for economic growth.”
A HM Treasury spokesperson told ELN: “The government is taking significant action to encourage investment in renewable generation including committing £30 billion to support the domestic green industrial revolution from March 2021 to April 2028.
“Our Contracts for Difference scheme has been hugely successful in driving the deployment of renewable energy with our most recent auction delivering a record capacity of almost 11GW of clean energy. To date, CfD generators have received almost £6 billion net in price support through the scheme.”