Published on 21 Dec 2010 • England, Wales |
"A new policy framework is essential to help us change the way we use energy, deliver the investment required to build a low carbon power system that provides security of supply at a price affordable for consumers".
"Major investment is required in the UK's electricity sector, both to replace generating capacity that is reaching the end of its life and to meet our targets for renewables and carbon emission reductions. In the long term, the cost of doing nothing to the country and to consumers will be much greater than the cost of low carbon measures. However, we must also bear in mind that the Renewables Obligation has turned the UK into an offshore wind powerhouse, and brought forward 20,000 megawatts of applications onshore. We shouldn't be looking to solve a problem that doesn't exist, or take a leap in the dark which might undermine investment."
"These proposals could help, but the Emissions Performance Standard shouldn’t be included, since it duplicates existing policies. Instead, ministers should focus on getting the detail right on policies that could work, such as guaranteed electricity prices through 'contract for differences' and capacity payments. The Government must support all low-carbon technologies while letting the market determine which are most effective. Changes of this scale will not be cheap, so it’s vital that we build the most cost-effective mix of energy sources."
"This consultation and the proposal to set a price floor for carbon, are crucial and welcome steps towards creating more certainty for investors on the likely returns from investing in low carbon electricity generation...This momentum must now continue with a raft of other measures to help provide this much needed investor certainty – these include firming up the energy policy statements so industry has a clear idea of Government’s commitment and vision and reassurance that the new planning system will aid progress. If industry has any reason to doubt the Government’s long term commitment, we could be facing a very real energy gap within a decade."