A draft energy bill in the UK has been criticized by the country’s Combined Heat and Power Association (CHPA) for proposing complex incentives that may deter investment in low carbon energy.

UK Energy Secretary Edward Davey announced a draft energy bill on 22 May aimed at supporting investment in low-carbon generation over the coming decades through introducing contracts-for-difference feed-in tariffs.

But the CHPA sees the complexity of the new proposals as a threat to existing momentum in renewables investment and a potential barrier to companies investing and trading in the UK electricity market.

‘The Bill announced today may be an important step in securing investments low-carbon power generation in the 2020s and 2030s, but may do little or nothing to address the energy challenges we face in this decade ahead of us,’ said CHPA Director Graham Meeks.

‘Consumers are facing the prospect of rising energy costs as old power stations close, but the reality is that the market is facing an hiatus in investment in new power generation. To tackle this problem we need simple measures that will drive investment in proven and reliable carbon-savings technologies – renewables, gas with combined heat and power, and straightforward energy efficiency.’

Contracts-for-difference feed-in tariffs under the proposed bill would guarantee a range of prices for power produced by different forms of generation. If the market failed to reach these figure, the government would make up the gap.

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