Oct 12th 2012
Debate about electricity market uncertainty continues
Energy and climate change secretary Ed Davey said on Thursday 11 October that encouraging competition on cost between low-carbon energy sources will be key to unlocking £110bn of investment in energy infrastructure. Speaking at the Low-carbon Investment Conference he said the "uncertainty" of current arrangements was deterring investment and feed-in tariffs with contracts for difference (CfD FiTs) would offer the "predictable" revenue streams needed to support "big projects". CfD FiTs would also help to "smooth out market volatility" by minimising costs to consumers and making financing decisions easier, Davey added.
In contrast Labour MP Alan Whitehead claimed legislative uncertainties could hinder the UK's ability to achieve its 2020 target of 15% consumption from renewable sources. Speaking at the Energy Solutions show in London on Thursday 11 October, he described the target as a vital staging post and suggested it would be "very grim" if the target was not met. Whitehead suggested planning systems needed to remain stable and, if the draft Energy Bill was introduced, removal of the Renewables Obligation would have a detrimental effect on investment signals for renewable power generation.
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