Low Carbon Alliance Pressures U.K. Government

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) -- A landmark alliance of the nuclear, renewable energy and carbon capture and storage (CCS) industries have called on the U.K. government to introduce a binding decarbonisation target for the energy sector.

The three organisations, which represent more than 1,000 corporate members, wrote to the Energy Secretary Ed Davey and Prime Minister, David Cameron, among other senior officials. The group, comprising RenewableUK, the Carbon Capture and Storage Association (CCSA) and the Nuclear Industry Association (NIA), reiterated their support for the forthcoming Energy Bill but argued that a decarbonisation target like that recommended by the Committee on Climate Change would boost investor confidence.

"As trade associations representing the three key low carbon energy technologies we very much support the Government's objectives for reforming the electricity market," the alliance wrote. If we are to meet the UK's energy securityand climate change targets it is vital that the momentum is maintained in building new low carbon generation. We believe the proposed reforms should help raise the necessary investment. Like Government, we believe that a diverse energy mix is likely to be the most cost-effective pathway to largely decarbonising the power sector, which means investment in nuclear, renewables, and fossil fuels with carbon capture and storage."

The call comes as the U.K. government fights internal battles against its ambitious wind farm proposals. In recent weeks, the U.K. has celebrated setting new onshore and offshore wind energy records. For additional information, see August 21, 2012, article - Onshore Windfarm Costs Plummet.

The group warned that the Energy Bill should proceed "without delay", and called for Royal Assent as early as possible in 2013. Any delays, the group argued, would "result in investment being postponed, with major implications for associated new industrial development and jobs in a high-tech, high growth sector."

The letter added: "We also support the recommendation by the Committee on Climate Change that the power sector will need to be largely decarbonised by 2030 if the U.K. is to meet its long term emissions targets. 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. We therefore believe that this could be very important for investment going forward."

New figures show that wind power could be supplying one in 10 of all U.K. homes by the end of the decade. The State of the Industry report from RenewableUK showed that installed wind power capacity for 2011/12 hit 1,825 megawatts (MW), a rise of around 25%. In that period, 774 MW of onshore capacity was added as 44 new windfarms came online while 517 MW of offshore capacity was added after three major windfarms - Walney I, Walney II and Ormonde -- were commissioned.

RenewableUK chief executive, Maria McCaffery commented: "These strong figures underline the importance of a secure trading climate to attract investment, especially in difficult times. That's why it's so important that the framework provided by the Energy Bill, currently under parliamentary scrutiny, must be right".

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