Going green, or going nowhere: UK energy industry warns government

The government’s failure to acknowledge and respond to challenges faced by the low carbon industry puts decarbonisation targets at risk, says Energy UK

The energy industry has sounded a warning bell, urging the government to accelerate the pace of its net zero targets.

Regen’s Chief Executive Officer Merlin Hyman, responded to the Business, Energy and Industrial Strategy Committee’s report on the decarbonisation of the power sector, warning that policy uncertainty and the lack of a clear delivery plan could put the 2035 net zero power target at risk.

The report recommends that the government take action to address long grid connection delays, ensure that the Contracts for Difference (CfD) auction reflects pressures faced by the renewable industry, and put net zero at the heart of Ofgem’s statutory remit.

Regen has urged the government to act on the committee’s recommendations.

The government’s decarbonisation targets are at risk if it fails to respond to challenges faced by low-carbon developers, according to Energy UK’s Deputy Director of Advocacy Adam Berman.

He said that the rising costs faced by renewable energy projects have not been considered in the upcoming CfD auction, which could hinder the delivery of clean domestic power.

Berman also expressed concern about a windfall tax that favours oil and gas companies over renewables developers, which could lead to investment going elsewhere.

The Association for Renewable Energy and Clean Technology (REA) has welcomed the BEIS Select Committee’s report on the decarbonisation of the power sector, which emphasises the need to speed up the delivery of renewable energy technologies and address barriers to deployment.

However, the REA believes that the report lacks engagement with the climate science that supports the use of sustainable bioenergy to displace fossil fuels, which has been instrumental in decarbonising the power sector.

The REA urges sensible discussions on bioenergy and the continued use of strict sustainability governance to build on the sector’s existing success.

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