The UK’s renewables and nuclear sector leaderships have take the unprecedented step of writing a joint appeal to the Energy Secretary, Ed Davey, asking him to ensure the government does not abandon their commitment to decarbonisation targets.
The Independent reports that the heads of more than 1,000 nuclear and renewables companies have written to David Cameron, George Osborne and Ed Davey calling on them to agree a legally binding decarbonisation target for electricity generation.
It is the first time that Britain’s nuclear and renewables industries have come together in this way.
The move is motivated by fears that the Treasury is winning the argument in cabinet for a gas power generation and the letter is being sent ahead of an energy ‘quad’ meeting due to be held later this week.
The Liberal Democrats are demanding that the Treasury effectively guarantees the returns that the nuclear and renewable industries will make by generating clear power as a way of reducing their huge upfront investment costs.
However, Mr Osborne prefers gas as a cheaper short term option in terms of keeping down energy bills even if in the long run gas power is more expensive.
The letter calls on ministers to quickly publish and push through the Government’s Energy Bill to provide the investment certainties that companies’ need. “It is essential that the Energy Bill should proceed without delay,” they warn. “Any significant slippage could result in investment being postponed, with major implications for associated new industrial development and jobs in a high-tech, high growth sector.”
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