The report was launched in Parliament by the Dods Renewable Energy Dialogue, a programme bringing together a group of organisations including Vestas, Co-operative Energy, JDR Cables and RSA Group with politicians to debate the economic potential of renewables.
Key themes emerging from the dialogue were the need to build a political consensus on renewable energy; to communicate the benefits that renewables have brought; to develop a domestic supply chain and to recognise that investment today will lead to future savings.
During her opening speech at the event shadow energy minister Julie Elliott warned that in terms of developing clean energy the UK was in danger of “seizing defeat from the jaws of victory” noting that a cross-party consensus evidenced in the near unanimous passing of the 2008 Climate Change Act was eroding.
Elliott cautioned that the UK's attractiveness as a place to invest in renewable energy was diminishing due to policy uncertainty. The UK had slipped to fifth place in international rankings and numerous off-shore wind projects had recently been cancelled, she explained.
“The government is the market maker in this so...the internal rows...do damage investment confidence” she said.
Despite this, the shadow minster stressed that the UK was well placed to take advantage of the low carbon economy. She referred to low interest rates, abundant environmental resources and professional knowledge as key ingredients of developing a renewable energy supply chain.
Elliott also outlined Labour's energy policy, saying a 2030 power sector target was a signal of intent for the industry and provided a clear direction of travel.
Supply chains were crucial she added, noting there was currently no turbine manufacturer in Britain. It was not enough to import, and the manufacturing base needs to be developed, she argued.
An energy prize freeze and market reforms were good for both consumer and investor since building greater trust in the industry and creating fairness in the market would lead to less volatility, the audience heard. Labour's plans to create an open pool for generators to sell electricity would help boost the volumes traded and help create a more attractive market, she argued.
The shadow minister concluded saying that through a “2030 decarbonisation target more powers to the Green Investment Bank, the creation of an Energy Security Board and by sticking to CfDs (Contracts for Difference) Labour is committed to building a thriving clean energy sector.”
The Minister of State for Climate Change Greg Barker used his speech to focus on the health of the renewable sector. He said it was easy to forget for those “passionately committed to the low carbon economy” and who believed in “stepping up and doing something about climate change” that actually much progress had been made.
Thirty-one billion of investment had gone into the development of clean energy since 2010, he told the audience. The UK also boasted the largest off-shore wind industry in the world and was “doing things in the North Sea that were incomparable to anything else happening on the planet” he said.
Following the passing of the Energy Act in December 2013 an additional £15bn of new projects came forward for offshore wind, he outlined; “a sensational result...a tribute to the fact we now have a long term framework with clear, transparent and predictable returns.”
Electricity market reform provided the necessary architect for development in the energy sector, but the levy control framework was the “fuel...the subsidy” to support the new technologies through to 2020, he added.
On solar Barker remarked there had been “extraordinary” growth, explain that since 2010 the number of roofs with solar panels on them had gone from 15,000 homes to half a million.
The minster also went on to stress the value of the Green Investment Bank, with a current balance sheet of £5bn.
“Yes, I am like many others, impatient for them to get the green light and go out into the capital markets and raise more money, but they will, it's just a matter of timing.” The publically quoted markets were also opening up for offshore wind, which was very important, he said.
Barker went on to explain that a key message coming out of the report was the importance it placed on cross-party consensus regarding the long term need for renewable clean energy. It was crucial that “after a period in British Politics over the last 15 months that's seen us pulling in the opposite direction on energy policy”, this was built upon.
The investment cycle and energy security issues were far more important that one parliament or party, he concluded.
Notes
- Download the full report, The Economic Benefits of Renewable Energy: A potential windfall? here.
- The Dods Renewable Energy Dialogue brings together a group of organisations including Vestas, Co-operative Energy, JDR Cablesand RSAwith the political community to debate the economic viability of renewable, and specifically wind energy, as a legitimate and sustainable alternative to fossil-fuel based supplies.
- For further information, please contact David.Tripepi-Lewis@dods.co.uk(020 7593 5661).