The Energy and Climate Change Select Committee has been inquiring into investor confidence in the energy sector. They are particularly interested in addressing factors that can affect investor confidence and are trying to gain a better understanding of how the policy development process might impact on this.
Committee Chair, Angus MacNeil, said: “Energy experts have told us that the Government has spooked investors with a series of sudden energy policy changes announced over the summer without proper parliamentary scrutiny. We will be looking at what steps Government must take to restore confidence in the UK’s energy sector and improve DECC’s policy making processes.”
Representatives of NextEnergy Capital, the Solar Trade Association, and Lightsource Renewable Energy, recently gave evidence. A key message from an investor point of view is the need for a strong and continuing stable regulatory regime. Furthermore, the sudden ‘kneejerk’ announcements in response to external events discourage investments. They cause developers to rush through projects to meet new project ‘windows’ to be certain of securing funding. Another key concern was the effect of ‘minimum input pricing’ within the EU on the overall government expectation that the solar PV industry in the UK should not need tariff support post 2020.
For more information, help or advice please contact Andrew Davison on 0191 211 7950.