Energy UK joins calls to back ‘pot one’ technologies

In a report published today, entitled Pathways to a low carbon future, the trade body said the removal by Government of a “route to market” for “pot one” technologies – those that are well established and in need of less subsidy support than pot two technologies like offshore wind – is “one of the biggest barriers” in the industry, and as the Competition Markets Authority also noted, represents a “poor deal for the consumer”.

The report also calls for future contracts for difference (CfD) rounds to be set on a rolling, one-year basis, adopting the same model as the capacity market.

It also recommends that the new set of controls which will replace the levy control framework include an appropriate investment framework, which will give “clear, long-term price signals”.

The chief executive of Energy UK, Lawrence Slade, said the report highlight the need for a “long-term, certain and holistic policy framework”, which will ensure the UK meets its carbon targets “at the least cost to consumers”.

The chief executive of the Renewable Energy Association, Nina Skorupska, welcomed the report and said they backed Energy UK’s calls for a “route to market” for these technologies.

“If the government is truly committed to decarbonising at the lowest cost it should be supporting the deployment of onshore wind and solar as they are arguably already cheaper than gas,” said Skorupska.

Last week, Scottish Renewables called on the Government to let onshore wind bid in a new CfD round one.

“If you want to deliver onshore wind capacity at a scale, which will make a meaningful contribution to the UK’s work to meet climate change targets and secondly keep bills down for consumers then you will need a CfD framework,” said Scottish Renewables’ chief executive, Niall Stuart.

Jamie Hailstone

This article first appeared on edie’s sister title, Utility Week