UK parliament committee calls for speeding up green power

The UK will fail to achieve its target of decarbonising the power sector by 2035, if it does not quickly increase the generation of fossil fuel-free electricity, warned a House of Commons Committee report on Friday.

The Business, Energy and Industrial Strategy Committee said that policies for the power sector should be more coordinated.

According to its "Decarbonisation of the power sector" report, the government will need to respond to overseas competition for low-carbon energy investment, as well as be more active in co-ordinating and pushing through the required grid upgrades and accelerating the process for planning consents and grid connections.

The committee also warned that the viability of many renewable projects could be jeopardised as UK renewables developers are facing high cost inflation and less generous windfall tax exemptions compared to the oil and gas sector.

It called for overturning the de facto ban on onshore in England and creating a policy framework that supports its deployment. “The government must ensure that the UK’s ports have the capacity to support its offshore wind ambitions, must prioritise work to support long-duration energy storage, decide on the use of hydrogen across the economy, and clarify where private finance for nuclear energy projects will come from,” the report says further.

The government has two months for a response.

Industry body Energy UK said the report echoed concerns raised by many in the industry.

The challenges for renewables developers include rising costs that have not been reflected in the next Contracts for Difference auction and a windfall tax that gives more favourable treatment to oil and gas companies at a time of increasing competition for green investment from the US and Europe, it added.

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