The renewables, nuclear and carbon capture and storage (CCS) industries have joined forces to call on the UK government to instigate a binding 2030 decarbonisation target for the power sector.
In a letter to the Energy Secretary Ed Davey, RenewableUK, the Carbon Capture and Storage Association (CCSA) and the Nuclear Industry Association (NIA), which represent over 1000 companies including many of the UK’s largest energy players, urge the inclusion of a 2030 decarbonisation target in the forthcoming Energy Bill.
“We very much support the government’s objectives for reforming the electricity market,” write the trade associations. “Like the government, we believe that a diverse energy mix is likely to be most cost-effective pathway to largely decarbonising the power sector, which means investment in nuclear, renewables and fossil fuels with CCS.”
But while the proposed reforms should help raise the necessary investment, the signatories say that it is “vital” that momentum is maintained in building new low carbon generating capacity.
Keeping investment coming could be helped, says the letter, by following the Committee on Climate Change’s recommendation for a 2030 decarbonisation target.
“If a reference were included in the Energy Bill to this objective, this would not only reassure potential investors by lowering the perceived political risks but could also reduce the cost of capital for decarbonising the power sector,” write RenewableUK, CCSA and NIA.
The organisations also urge the government to proceed “without delay” with the Energy Bill to ensure that it receives its Royal Assent as early as possible next year.
“Any significant slippage could result in investment being postponed with major implications for associated new industrial development and jobs,” they warn.
UK Energy Secretary promises Energy Bill “within weeks” (18-Oct)
UK Chancellor backs renewables but gives shale gas a tax break (9-Oct)
UK businesses calls for 2030 carbon target to unleash investment (8-Oct)
Lib Dems and Labour back binding decarbonisation target (26-Sept)
Article source: http://www.energyefficiencynews.com/i/5511/