The Government has committed to attract record levels of investment in renewable energy and to speed up grid connections to reach net-zero in the King’s Speech.

At the State Opening of Parliament the King announced that legislation will be introduced to strengthen the UK’s energy security and reduce reliance on volatile international energy markets and seek to attract record levels of investment in renewable energy sources. The King also announced a reform of grid connections, helping to maintain the UK’s track-record of “decarbonising faster than other G7 economies”.

Responding to the measures relating to the energy sector outlined in the King’s Speech, RenewableUK’s chief executive Dan McGrail listed measures that he believes would add to the process: “We’re calling for a commitment by the Chancellor to work with the Department for Energy Security and Net Zero to set an overall budget, and maximum strike prices, at appropriate and sustainable levels which allow for a return on investment for vital new projects.

“We also need to see a change in the rules on capital allowances, so that offshore wind projects qualify for the main rate of 18 pre cent, rather than the lower rate of 6 per cent, which developers get at present. We are asking the Chancellor to remove the Electricity Generator Levy from offshore wind projects which choose to sell their power directly on the open market before taking up their CfD. This option is vital for projects to break even in adverse economic conditions. We’re also calling for measures to attract further investment in the UK’s offshore wind supply chain and port infrastructure. There’s a global shortage of offshore wind products and services, so we have a great opportunity not only to build up our domestic market but also to export worldwide”.

McGrail pointed to recent public opinion polls as a source of support: “Polling shows an overwhelming majority of voters believe that the growth of green industries is important for Britain’s economy, especially among voters who are planning to switch from Conservative to Labour at the next election. A significant proportion of voters believe the Conservative Party has been less focused on unlocking investment in renewable energy than on oil and gas in the last six months, and most of these voters have a less favourable view of the Conservatives as a result”.

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