A new report from Britain’s House of Commons Energy and Climate Change Committee warns the government that proposed energy reforms may have the perverse effect of encouraging companies to focus on building cheap gas power plants, limiting investments in renewable energy. As well, the Committee agreed with testimony from Friends of the Earth arguing that a “dash for gas” , could prevent the country from reaching its climate action targets, especially since gas plants are expected to rely on unproven carbon capture and storage technology.
The Department for Energy and Climate Change (DECC) has said that £200 billion of new investment in energy infrastructure is needed by 2020 to meet rising demand and achieve renewable energy and climate change targets. First published in November 2009, and revised in October 2010, six draft National Policy Statements on energy (NPSs) laid out the importance of building and funding new electricity infrastructure, to include renewables, nuclear, fossil fuels and improved grid connections. The NPSs aim to increase confidence for investors and to speed up the planning process for Nationally Significant Infrastructure Projects.
The UK’s largest pension company will call on the government to discuss legislative backing for clean energy investment later this year.