Lord Deben is worried. Veolia UK Ltd, the company he chairs, stands ready to connect just as many windfarms to the grid as the country is willing to subsidise. But without clear national carbon reduction targets, the company is unlikely to make its mint.
In an entirely unrelated step, Deben has written to the Energy Secretary.
We note that the Government has acknowledged the benefit of a 2030 carbon-intensity target in your recent proposed amendment to the Energy Bill. However, the delay in setting this until 2016 at the earliest means that a high degree of uncertainty about sector development beyond 2020 remains. This will adversely impact on supply chain investment decisions and project development, therefore undermining implementation of the Bill and raising costs for consumers.
- Scenarios recently published by the Government in its gas generation strategy suggest the possibility of a significant fall-off in investment in low-carbon power generation after 2020...
- This could be particularly damaging for investment now in the offshore wind supply chain.