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MPs to assess whether changes to energy policy have deterred investors

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The Energy and Climate Change Committee, which consists of 11 MPs, has launched an inquiry into how much of an impact the recent changes to UK energy policy have had on the number of those willing to invest in renewable energy.

As part of the report, information is being sought from industry representatives, to assess how the Department of Energy and Climate Change (DECC) considers investors’ requirements when modifying its policies.

In the most recent quarterly Renewable Energy Country Attractiveness Index, which is published by Ernst and Young, the UK’s ranking went down to 11th place from eighth position in the preceding report.

In June, the energy secretary – Amber Rudd – also admitted that approximately 250 of the UK’s planned onshore wind projects would probably not be implemented due to the Government’s decision to end the Renewables Obligation (RO) subsidy programme one year earlier than initially planned.

DECC currently estimates that £110 billion worth of investment is needed in the UK over the course of the next ten years, in order to replace its existing energy sources while meeting international climate change requirements.

Responses from representatives in the energy industry are being welcomed as part of the committee’s report, and any feedback must be submitted by 26th October.

The committee has already expressed concern that DECC’s recent changes have been pivotal in “weakening the case” for investors, through damaging investor confidence and making the long-term direction of UK energy policy appear to be less stable.