Energy bill delays could scare off investors

Low carbon energy industry associations have urged the government to be decisive on firming up the energy bill and have reiterated their calls for a largely decarbonised power sector by 2030.

The Carbon Capture and Storage Association, the Nuclear Industry Association and wind and wave power association, RenewableUK, sent a letter to the Secretary of State for Energy and Climate Change Edward Davey today urging that in order to meet climate change targets, it is crucial that “momentum is maintained.”

The letter, seen by edie, was sent on behalf of 1,000 corporate members and also copied to the Chancellor, Prime Minister, Deputy Prime Minister and Business Secretary.

It warned that the energy bill needed to be finalised swiftly in order to attract investment.

“It is essential that the Energy Bill should proceed without delay, with Royal Assent as early as possible in 2013. Any significant slippage could result in investment being postponed, with major implications for associated new industrial development and jobs in a high-tech, high growth sector,” it said.

The letter also called on the Government to refer to the target recommended by the Committee on Climate Change in the wording of the energy bill.

It claimed this would “reassure potential investors by lowering the perceived political risks” and “reduce the cost of capital for decarbonising the power sector.”
Commenting on the letter Labour’s Shadow Secretary of State for Energy and Climate Change Caroline Flint, said: “After weeks of shambles on energy policy this warning from RenewableUK, the Carbon Capture and Storage Association and the Nuclear Industry Association should come as a wakeup call to ministers.

“The message is loud and clear: unless the Government ends the dither and delays and stops the mixed messages Britain will lose out on good-paying clean energy jobs and new industries which could bring badly-needed growth to our economy. The Government must commit to decarbonising the power sector by 2030 so that investors know Britain is open for business.”

Conor McGlone

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