Several of the UK’s largest businesses and industry bodies have joined forces to write to the Chancellor, expressing concerns over the lack clarity in energy policy which could cause huge UK financial loses. Potentially hundreds of £millions could be at stake.
The signatories of the letter include potential major investors in the UK’s offshore wind, renewable thermal, gas and nuclear power sectors; Siemens, Alstom UK, Mitsubishi Power Systems, Areva, Doosan, Gamesa and Vestas.
The group calls for a binding 2030 carbon reduction target for the power sector. This would reduce the political risk associated with long term investment in the sector (but would, of course, increase costs to the consumer).
The problem seems to have arisen after the Energy and Climate Change Secretary agreed to develop a ‘gas’ strategy up to 2030 and beyond. The letter from the seven key investors has been delivered in parallel with an open letter from the Aldersgate Group representing over 50 major investors/suppliers to UK markets (including ASDA, Atkins, Aviva, EDF, Mitie, M&S, etc.) also calling for a power sector decarbonisation target to stimulate investment in cleaner energy.