RenewableUK has welcomed the publication of today’s draft strike prices for the technologies it represents as an important step in building industry confidence.
The Government has confirmed the levels of support it intends, subject to consultation, to provide renewable technologies including onshore and offshore wind and wave and tidal.
Much detail remains to be fleshed out with the publication due next month of detailed contract terms, the draft delivery plan and an Offshore Industrial Strategy. However industry welcomed the confirmation of the draft strike prices as an important step on keeping to schedule. RenewableUK welcomed that Government has responded to industry calls to confirm there would be no refinancing clause within the Contract for Difference (CfD) contract and enhanced funding for the Green Investment Bank and the Technology Strategy Board.
Maria McCaffery, Chief Executive of RenewableUK said:
“The confirmation of levels of the draft strike prices is a welcome step forward in setting out how the long term market is going to work. The levels of the strike prices are challenging but possible considering the reduced time periods that renewables will be supported for under contract for difference system compared to the Renewable Obligation.
“However, more details do need to be set out. The most important ingredient remains investor confidence and that will take time to land. The secret is consistent long term support and investors seeing that Government is behind renewables and low carbon generation for the long term.
“It’s now up to Government and industry to work together to ensure that the wider supply chain has the confidence to gear up to enable tens of thousands of jobs to be created by the end of the decade. It was good to see a vote of confidence in our UK supply chain by the focus on impact on industry development in the final investment decision enabling document, and we are looking forwards to hearing more about the Government’s decisions on the long term regime next month.”
Industry also welcomed the news that a different level of support is being consulted on for the Scottish Islands. McCaffery said:
“There is huge wind and marine resource in the Scottish islands, but due to the enhanced costs of grid connection this is not being fully exploited, and changes to support could alter this”.
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Press release, June 27, 2013; Image: renewableuk