RenewableUK gave key evidence to the parliamentary committee scrutinising the landmark Energy Bill in Westminster today. The Bill sets out a radical new financial framework for the energy sector for the decades ahead. It aims to provide best value for money for consumers, while also ensuring the UK generates a secure supply of cleaner energy at a stable cost, in which renewables will play an increasingly important role.
RenewableUK supports the Energy Bill and agrees with Government that Electricity Market Reform is needed to attract crucial investment into the sector, to meet legally-binding carbon reduction targets and create tens of thousands of jobs by the end of the decade, with the potential for more than 88,000 jobs in the wind, wave and tidal sectors by 2021.
Chief Executive Maria McCaffery and Deputy Chief Executive Maf Smith told the House of Commons Energy Bill Committee that to ensure the smooth passage of the Bill through Parliament, a number of key issues have to be addressed so that it can become law before the end of the year.
These issues include clarifying the transition process from the current financial support mechanism – Renewables Obligation Certificates (ROCs) – to Contracts for Difference (CfDs) to ensure there’s no hiatus in much-needed investment.
RenewableUK also believes that the counterparty owned by the Government, which will administer the new support mechanism, should be allowed to hold a flexible reserve of credit. This would ensure that payments can be made to electricity generators in a timely manner, if electricity suppliers default on any payments they owe.
Another key concern is that the Bill should ensure that small generators are able to sell the power they produce and have access to finance, to improve competition in the market place.
RenewableUK also believes that generators should be guaranteed stronger protection from any future changes in the law which may affect their income, to ensure that they do not lose out unfairly.
Speaking about the massive manufacturing opportunities for the wind energy sector, including the supply chain, Maria McCaffery told MPs:
“Outstanding elements of the Bill need urgent attention. There’s a real sense within the industry of being on the cusp of making final decisions on investments. We’ve seen half a dozen turbine manufacturers committing between half a billion and a billion pounds each to open factories, but the pledges remain pledges. To get them converted into financial commitments, to see the foundations of factories being laid, and begin the recruitment of workers, we need definition and clarity around the Energy Bill.”
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Press release, January 18, 2013; Image: statkraft