Even though the Capacity Market Auction has blocked support for coal, the Renewable Energy Association (REA) has accused the Government of propping up the fossil fuel industry. Less than 6% of this auction’s power reserve comes from renewables, while less than 2% is covered through energy storage. In contrast, coal secured an 8% share. The Government is yet to announce any funding for renewable projects under the Levy Control Framework beyond 2021, while requests from the REA on funding renewable heat projects in the Framework’s wake have been ignored. The REA’s head of policy and external affairs James Court said: “This is another example of Government subsiding fossil fuels whilst blocking the cheapest renewables to market. No long-term carbon price has been assigned, yet the Government is happy to directly financially support gas and diesel projects. That funding can be better used to drive innovation in the wide range of storage technologies instead. “The clean growth plan talked a good game but failed to walk the walk. We are in the bizarre situation where we are propping up fossil generation, but scaling back support for technologies that are cheaper, cleaner and will provide future proofed jobs. The government’s energy policy needs a complete rethink, or we will be left behind with a dirty, antiquated and expensive energy system.” Currently, onshore wind, large-scale solar and biomass installations can’t be funded through Contracts for Difference auctions, while cuts to subsidies in the renewable energy sector have created a 56% decline in investment between 2017 and 2016.
Edie 2nd Feb 2018 read more »