Renewable Energy

The Economic Benefits of Renewable Energy: A potential windfall?

Dods Renewable Energy Dialogue | Year 2 report

In partnership with

21 Dartmouth Street, Westminster, London, SW1H 9BP Renewable Energy

Powering Sustainable Growth Foreword by Tim Yeo MP

The importance of renewable energy in the UK continues to grow. Our geographical location and available expertise has seen the development of a full portfolio of renewable generation technologies. Although the recent focus by Government on reducing the cost of ‘green levies’ on energy bills has not been helpful for investor confidence in green energy projects, if you look beyond the political posturing, there are many positives to draw from.

A new low-carbon support regime is nearly up and running. The Energy Act 2013 set in statute the key tenets of the Government’s Electricity Market Reform programme. Renewable projects can soon look forward to obtaining a Contract for Difference and the certainty of a strike price. The Levy Control Framework will provide a guaranteed level of consumer support for low-carbon technologies that will reach £7.6bn in 2020/21, although more clarity about the level of support that will be available into the 2020s would be useful. A carbon-intensity target for for the more mature technologies. electricity generation in 2030, which should be set in 2016, will also provide a valuable Finally, a final decision is looming on the EU’s signal for the renewable energy industry 2030 package and whether it should include including its supply chain. another renewable-energy target. Some are concerned that the UK Government’s A focus on achieving value for money current position lacks ambition on renewables within this support framework will become in the 2020s and that technology neutral increasingly important. The cost of renewables incentives do not help to achieve a suitable will rightly receive intense scrutiny although level of deployment. Others are making the happily costs for most technologies continue case that a challenging emission-reduction to fall. Now that the strike prices for different target should be the focus of the deal, leaving technologies can be so easily compared, member states flexibility about how they in contrast with the hard-to-understand achieve this goal in the most cost-effective Renewables Obligation regime, the public manner. This debate is not yet concluded. will probably become more engaged and vocal about what they are paying for. The

Government is already rightly intending to Tim Yeo MP, Chair, Commons Energy and Climate move to a more competitive bidding process Change Committee

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Introduction by Tony Grew

Renewable energy, for so long a fringe ‘green’ party conferences. dialogue events. They brought unparalleled issue, is now part of the political mainstream. industry insight to the table, and the All of the major political parties at Westminster While the politicians may agree on the need politicians found their perspective invaluable. recognise that it is not just desirable but for more renewables, they do not always vital that the UK increase the amount of agree on the best way forward. Dods also polled 100 MPs on their opinions of renewables in our energy mix. renewable energy, including their thoughts As Shadow Energy and Climate Change on their economic impact. The results can be But which renewable energy sources Minister Tom Greatrex says in this report, found in this report. should the Government, and indeed future renewable energy in the UK “is a vigorous governments, invest in, promote and support? success story, but its victories are easily When we took the conversation to party undone”. conferences, we heard the eclectic views of For the past two years, Dods has been party activists on everything from onshore bringing together renewable energy experts Dods renewable dialogues have been vital wind farms to solar arrays, from nuclear power and politicians, to share their experiences and in helping the industry understand the to the proposed scheme. discuss the way forward. politicians and vice versa. What also became clear at our conference We have hosted roundtable discussions Our partners - Co-operative Energy, JDR events is how entwined these issues are with in Parliament and fringe meetings at the Cables, RSA Insurance Group and Vestas - have wider challenges such as the UK’s energy Conservative, Labour and Liberal Democrat engaged with senior MPs and peers at our inefficient housing stock and the scepticism some still feel towards ‘green’ energy.

On a personal note, chairing our roundtables and conference fringe meetings has left me feeling very positive about the renewables industry in the UK.

Politicians need clear policies to support these vital jobs and industries, but the political will is there.

It will be for history to judge whether this Government will be the greenest ever, but it is clear already that future governments will have to keep renewables at the centre of their policies.

Honouring our carbon reduction commitments, reforming and securing our energy supply and creating new, green jobs are now priorities for every political party.

Tony Grew, Parliamentary Editor, PoliticsHome

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About the dialogue process

The Dods Renewable Energy dialogue is In order to explore the subject as fully as now in its second year. As a programme of possible, we have conducted a series of research, we are committed to investigating research exercises, including polling of MPs, the impact that renewable energy can have two themed roundtables in Parliament and on the UK economy and highlighting the fringe meetings at the Conservative, Labour steps necessary to ensure that the sector can and Liberal Democrat party conferences in bring the greatest benefits, both financial and autumn 2013. environmental. Throughout this exercise, we have been This year’s dialogue is focused on the ably supported and advised by our partner economic potential of renewables – including organisations: Co-operative Energy, JDR a survey of the current state of the sector; on Cables, RSA and Vestas. the wider benefits that it can bring to the UK economy in general and to local communities This report represents the synthesis of all in particular; on the competitive advantages of our activities this year, along with other enjoyed by Britain; and on the obstacles to relevant information on the development of achieving our potential. the UK renewables sector.

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Recognising economic opportunity

Renewable energy already forms a significant Although much has been made of the part of our electricity production (15.5 potential of shale gas in some quarters, local per cent in 2013)1 and is growing rapidly. opposition to developments is growing.4 Such growth is vital given that both the UK Ramsay Dunning, general manager at Co- Government and the European Commission operative Energy, pointed out at our January have set challenging goals to increase 2014 policy roundtable that exploitation the proportion of energy sourced from will not lead to a lowering of prices. renewables. Moreover, serious questions remain as to the compatibility of a second dash for gas with The UK is particularly well-placed to make the the Government’s carbon budget targets most of both the European and international given the higher GWP of fugitive methane opportunities presented: Britain has existing emissions.5 6 expertise in marine engineering, investment finance and insurance, and research and Indeed, Alan Whitehead, Labour member of development. These, along with the the Commons Energy and Climate Change resource potential afforded by our climate Committee, speaking at our January 2014 and geography, give the UK a competitive policy roundtable, described shale gas as advantage and offer the prospect of “ludicrously over-hyped”. developing the sector as an export industry. Fortunately, the development of the Future demand for electricity should also be renewable sector offers the UK the ability seen in the context of declining production to increase electricity generation without of and gas – energy production relying ever more heavily on fossil fuels. There from the UK continental shelf fell by 59 per is now over 10.6GW of wind capacity in the cent in the period from 2002 to 2012.2 UK (6.973GW onshore and 3.653GW offshore). Wind capacity has increased nearly fourfold Such a decline in production means the since 2008. In December wind records were UK is now a net importer of gas. Domestic set, with 17% of the UK’s electricity demand production of coal has also fallen substantially. being met by wind on 21st December. Over The price of coal has fallen as a result of lower 11% of electricity demand was met from wind demand in the US where cheap shale gas has across the whole of December.7 squeezed coal out of the energy mix. Cheaper coal has in turn led to a greater use of coal 1 UK Renewable Energy Roadmap Update 2013, p. 13, to generate electricity in the UK. In 2012, the Department of Energy and Climate Change use of gas in electricity generation fell by 30 2 Digest of UK Energy Statistics (DUKES) 2013, p. 12, ONS per cent, while the use of coal increased by 32 3 DUKES, p.11, ONS 4 Less than one in four people support fracking in Britain, 3 per cent. research finds, Daily Telegraph, 29 January 2014 5 Anthropogenic emissions of methane in the United While a mix of energy sources is important States, Proceedings of the National Academy of Sciences of the United States of America, November 2013 to insulate the economy against shocks in 6 And it is far from clear that shale gas will have a any one fuel market, the increased reliance significant impact on prices, a sentiment expressed by on coal is worrying given the environmental the Commons Energy and in the conclusion of their report The Impact of Shale Gas on targets mentioned above. Energy Markets of April 2013 7 RenewableUK Wind Energy Database

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Not only does such a rapid expansion have produced with foreign materials by Dutch Department of Business, Innovation and Skills a direct benefit – in terms both of electricity contractors. to ensure UK companies fully benefitted from produced and jobs created – it plays a much the initiative. wider role in fostering the creation of a supply And the opportunities are not limited chain dedicated to building and maintaining just to the turbines themselves. The UK Speaking at our fringe event at the renewables. These clusters of expertise lead enjoys particular strengths both in offshore Conservative Party conference, Laura Sandys to export earnings around the world. There is engineering – as evidenced by the success MP, at the time PPS to Energy and Climate a chance to build an exportable capability in of the oil and gas industry in the North Change Minister Greg Barker, spoke of her the UK to support renewable projects around Sea – and in professional services (including experiences with the London Array – a the world, in insurance among other areas. engineering, financial services and insurance), development close to her South Thanet both of which will play a major part in the constituency. She argued that the previous As yet, the UK has not exploited this development of future renewables capacity. Government had not done enough to opportunity as much as it might. Speaking establish a domestic supply chain, but at our November 2013 policy roundtable, Offshore wind in particular has grown swiftly admitted that the current administration still Andrew Norman, Chief Executive of in the period since 2008 (increasing over had work to do on this issue. JDR Cables, observed only around 4-20 sixfold to 3,653MW).8 This form of renewable per cent of the contents of a windfarm energy draws both on the aforementioned Labour Shadow Energy Minister Tom Greatrex were manufactured in the UK, while the strengths in marine engineering, but MP also recognised the opportunities offered comparable figure for Germany was closer also makes the most of Britain’s long and by the development of renewables. Speaking to 100 per cent. This is perhaps unsurprising, windswept coastline. at our Labour conference fringe event, Mr given Germany’s historic strengths in Greatrex noted that not only were the potential engineering, but it does suggest that UK firms Energy Secretary Ed Davey MP, speaking economic benefits significant, they were can do more to take advantage of a fast- at our Liberal Democrat conference fringe greatest outside the south east of England and growing market in their own backyard. event, acknowledged the need to improve thus would play a part in the rebalancing and the UK supply chain. Highlighting the key role diversification of the UK economy. This point was supported by Ian Swales played by energy in the Government’s £300 MP, who noted that the 27 turbines off the billion infrastructure investment programme, While the development of a supply chain in coast of his Redcar constituency were being Mr Davey said that he was working with the the UK will support the domestic renewables

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Figure 1: Do renewables benefit the UK economy?

Strongly agree 15 Agree 28 36 Neither agree nor disagree 20 Disagree Strongly disagree 35 25

50

17 28

13 10 13 7 4

On the whole, renewable energy Conservatives Labour benefits the UK economy

sector, it also holds out the promise of elements of the renewables supply chain in – agreed that renewables would create building an export industry. The Renewable the UK and across the world. significant employment opportunities (27 per Energy Association estimates that meeting cent strongly so), compared to only 14 per the UK’s renewable energy targets would However, it is important that the UK doesn’t cent who disagreed. displace fossil fuels with a cumulative value of rest on its laurels. For example, China alone £60bn to 2020, giving a significant boost to hopes to more than double its installed However, Conservative respondents were the UK’s balance of trade. wind capacity by 2025, an aspiration all the much less enthusiastic than the average more impressive given that at that point figures would suggest. Only a narrow Furthermore, skills honed in the service of it will have more than doubled that of the majority (53 per cent) agreed that renewable the UK market – in designing, engineering, European Union. energy created significant employment, constructing, manufacturing, financing and as little as 35 per cent agreed that and insuring projects – will find a ready As part of the dialogue process, we polled 100 renewables benefited the economy. Despite international market. To take insurance as an MPs on their opinions of renewable energy, commitments from the Government, it is example, one of our dialogue partners, RSA, including their thoughts on the economic clear that a sizeable proportion of backbench is involved in around 80 per cent of offshore impact.9 Sixty-three per cent agreed with the Conservatives remain unconvinced as to the wind energy projects in northern Europe and idea that renewable energy benefited the UK opportunities presented by renewables. about three out of the six major wind turbine economy, with 28 per cent doing so strongly. In manufacturers. This equates to approximately contrast, only 20 per cent thought it would not. 8 RenewableUK Wind Energy Database 9 Polling conducted 2nd-16th September 2013, 102 MPs 40 per cent of the world’s turbines, with RSA responded, figures given are weighted to reflect the providing oversight throughout, insuring An even larger proportion – 69 per cent party-political composition of the Commons

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“It was great to be able to take part in the Dods Dialogue was a great forum for debate and Renewables Roundtable on the economic discussion and I look forward to taking part again potential of renewable energy. We had a in the future.” thoughtful and far-reaching discussion about the huge opportunity for this growing and innovative Laura Sandys, Former PPS to Greg industry in the UK. I have long campaigned for Barker as Minister of State for Climate a greater focus on the ‘green economy’ and I was Change, Conservative MP for South delighted to discuss this further with industry, Thanet APPGs and other parties. The Dods Renewables

Renewable Energy is vitally important to the UK’s renewable investment under this government. energy future. Labour’s Energy Act of 2008 was a major step forward in ensuring that our future With these drivers in place, renewable energy will energy mix reflects the priorities of diversification continue to contribute to jobs and growth across and decarbonisation at the lowest possible cost. the country with the opportunity to develop world-leading, regional centres of renewable The Labour Party’s decision to vote in favour industry in all parts of the UK. of the Government’s Energy Bill was proof of the fact that there is broad political consensus These opportunities will be squandered if on renewable energy as part of our mix. It sent the current government does not reaffirm a message to the industry that it can have its commitment to the renewable agenda. confidence in the long-term framework for their Renewable energy in the UK is a vigorous investment. success story, but its victories are easily undone. The industry is right to expect clarity about The next step in leveraging that investment is to government priorities. provide a 2030 decarbonisation target, setting the direction of government policy to maximise Tom Greatrex, Shadow Energy the jobs and growth opportunities for the UK Minister, Labour MP for Rutherglen and helping to reverse the worrying decline in and Hamilton West

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A fifth of the UK’s electricity generating capacity freeze. We want to open up the energy market, is due to close over the next decade, and when increase competition and put consumers in we came to power, Liberal Democrats saw a control. We’re enabling consumers to get direct huge opportunity for delivering green jobs and compensation when there has been wrongdoing growth, making the UK less reliant on fossil fuels by their energy supplier. We promised to and attracting up to £110 billion of investment legislate for simpler bills and ensure that needed to secure our future energy needs. consumers are always offered the best deal by their energy provider. We are delivering on that The Energy Act created the framework to promise. support 250,000 jobs by 2020 - 200,000 of which will be ‘green jobs’ in an increasingly vibrant Liberal Democrats are the party of green. renewable energy sector. It’s hoped that enough I’m proud that we are standing up for our green energy will be produced by 2020 to power environmental principles in Government and 10 million homes while, at the same time, CO2 placing the defeat of climate change at the heart emissions will be reduced by 20 million tonnes of our agenda. Green jobs and industry will be a year. That’s the equivalent of a whole year’s at the heart of the stronger economy and fairer worth of emissions from 7 million households. society we’re building for Britain’s sustainable energy market. I know that people are struggling with rising energy bills and they need real help - not an Ian Swales, Liberal Democrat MP for unworkable con like Labour’s energy price Redcar

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electricity or other community services that will Delivering growth and give concrete form to the wider advantages enjoyed by the country as a whole. creating local jobs While there is increasing focus on offshore wind, there remains a significant potential In 2011, the Government made the “green to the EU economy in 2010 as it exported over onshore. Community buy-in will continue to be economy” a central plank of its strategy for €5.7 billion worth of products and services in important if we are to maximise our onshore recovering from the economic downturn and this sector. resource potential. rebalancing the UK away from an overreliance on financial services and the City of London. In what may be a significant development, At our November policy roundtable, Labour’s early in 2014 the Government launched Shadow Energy and Climate Change Minister The Government set out its hopes for a Community Energy Strategy. This was a Julie Elliott MP said that although the public renewables in the 2011 policy document Skills primary ask of Co-operative Energy in our did not oppose wind turbines reflexively, for a Green Economy, in which it suggested that Dialogue this year, and aims to enable people “you have to take the public along with you.” A the offshore wind supply chain alone could to come together to reduce their energy use or sentiment that was echoed by fellow Labour support up to 70,000 more workers by 2020 purchase and generate their own energy. MP Ian Swales, who also stressed that “it doesn’t from a range of professions, including financial mean it’s ‘community’ because the local Scout services and IT.10 Furthermore, DECC’s latest In addition to the direct benefits the group gets £500. It’s got to feel like the [energy] Offshore Wind Industrial Strategy estimates development of the green economy will generation is benefiting us from an energy the sector could deliver £7 billion each year bring, it will also help to meet the UK’s point of view and from a bills point of view.” Gross Value Added (GVA) to the UK economy growing energy needs, predicted to increase by 2020. as transport, heat and other carbon intensive In our MP polling, respondents reported that sectors are electrified.11 This contribution is the planning regime is seen as a disadvantage The growth in renewables has already helped even more important given the fact that over a for UK renewables projects. Furthermore, to create jobs and attract investment in the quarter of the UK’s existing generation capacity Conservative respondents are much more related supply chain and other areas of the will be closed over the next decade.12 sceptical about public attitudes towards economy, e.g. spending by employees in the renewables than are their Labour counterparts: onshore wind sector is currently estimated The growth of renewables also brings only 23 per cent of Conservatives said that to contribute around £85 million to the UK local benefits: if we are to successfully public support for renewables conferred an economy and supports around 2,400 jobs persuade communities to accept renewable advantage on UK renewable energy projects, in businesses outside the renewables sector developments in their localities then we must as compared to the 38 per cent who said where employees spend their wages. Across offer them something tangible in return. Such public opinion was disadvantageous (10 per Europe, wind energy contributed €32 billion benefits could take the form of jobs, cheaper cent thinking it strongly so). Forty-six per cent of Labour MPs said that public support was an advantage.

It should be noted that public attitudes towards renewable energy are largely positive. The Department for Energy and Climate Change’s Public Attitudes Tracker found that 76 per cent of respondents supported the use of renewable energy.

Respondents were less clear on whether the investment environment and access to finance was an advantage or disadvantage for UK renewables projects. Fifty eight per cent of Conservatives believed it was, while the comparable figure for Labour respondents

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was just 30 per cent. This lack of consensus is a cause for concern given the UK’s strength in Figure 2: Is public support for renewables an financial services, particularly so in light of the advantage for the sector in the UK? fact that the Offshore Wind Cost Reduction Task Force has identified the need to better educate the finance sector on risk given that 2 6 Major advantage offshore wind construction has a unique risk Slight advantage profile which can hinder access to finance. 23 The insurance industry can play a role here No opinion/ in helping to manage or reduce such risks, 34 neutral allowing Britain to make use of its considerable 40 Slight experience in this sector. disadvantage

As has been mentioned above, development Major of a UK-based supply chain is a real prize 40 disadvantage that would bring much employment with it. Conservative MP Laura Sandys spoke of the 38 boom that offshore wind farms could bring to coastal communities and spoke of her hopes 36 for the Government’s community energy strategy. 28 The latter initiative, launched by Ed Davey on 27 January 2014, seeks to build on successful 20 Scottish and Welsh programmes, as well as 16 experience from Denmark, (where a similar 10 co-operative part-owns a 40 MW offshore wind 5 2 farm)13 to encourage communities to invest All Conservatives Labour in their own energy generation capacity. The Community Energy Strategy suggests that community energy could account for between potential of economic growth from renewable concerns about renewables projects on their 500 MW and 3 GW of installed capacity from projects, especially for coastal towns that have doorstep was “understandable”. He spoke of solar PV and onshore and offshore wind by been badly hit by the recession, stating: “It the need to appeal to people’s pockets, with 2020, helping to unlock additional investment has been estimated that the economy could community benefits and the promise of jobs and demonstrate direct benefits to the gain 30,000 jobs and £7bn in added value by and skills. communities where they are located. the end of the decade through offshore wind alone provided the right support mechanisms However, other attendees disagreed that Speaking at our Labour conference fringe are in place to give confidence to investors.” demonstrating community benefit was in itself event, Ben Reid, Chief Executive, of the sufficient. At the same event, fellow Liberal Midcounties Co-operative and Co-operative Mr Potter said the renewable sector as a whole Democrat Baroness Maddock (Secretary of Energy, called for more funding for community- could, according to European Commission the Renewable and Sustainable Energy APPG) owned power generation units and praised estimates, generate five million jobs across maintained that attitudes towards renewables community-involvement in Germany where Europe by 2020. in general were more important. local groups have benefited from wind farms. Mr Reid stated that community ownership Speaking at our policy roundtable in January, 10 Skills for a Green Economy, p. 20, HM Government, would help to tackle the problem of the rising Andrew George MP – Chair of the Liberal August 2011 cost of electricity. Democrat Parliamentary Party Committee on 11 Planning our electric future, p 5, Department for Energy and Climate Change – argued that Energy and Climate Change, July 2011 12 Ibid. p. 59 At the same meeting Mark Potter, Head of many companies were not good at engaging 13 Community Energy Strategy, p. 26, Department for Renewable Energy at RSA, underlined the with local communities and that consumers’ Energy and Climate Change, January 2014

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Obstacles to growth

If renewables are to achieve their potential, it is important to ensure that Government articulates a viable long-term energy strategy that recognises their contribution and offers policy stability.

At present, the Government is focused on four priorities in its energy policy: controlling costs for consumers; encouraging investment; diversifying generation and supply away from Figure 3: Word clouds of MPs’ a small number of big players; and reducing greenhouse gas emissions. views of renewables

While it is clear that renewables will help to reduce emissions, their impact on bills is more contentious. In our MP polling, we Conservative asked respondents to name words or phrases views they most associated with renewable energy. Labour Although “clean” and “green” scored well, views so did “costly”, “expensive” and “inefficient” – a trend particularly pronounced among Conservatives.

Word clouds created using: Tagxedo

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Furthermore, MPs from all parties were sceptical of the contribution made by renewables towards UK energy security and independence when compared to gas, nuclear and oil. The relatively poor performance of renewables in relation to oil and gas is surprising given that the UK has been a net importer of both for almost a decade.

The high rankings given to gas may partly derive from optimism stemming from the US fracking boom and from the large part it currently plays in generating UK electricity, although oil’s high ranking is harder to explain. As we have noted above, there is no reason to suppose that shale gas will have the same impact on the UK energy market as it Given Conservative hostility, this uncertainty renewables targets in its 2030 Energy and has in the United States, but it would appear on the part of Labour respondents is Climate Change Policy Framework. Targets that this message had at the time only a worrying, particularly in light of Labour that our partners – Co-operative Energy, JDR limited influence on political calculations. Leader, Ed Miliband MP’s decision to make Cables, RSA and Vestas – believe are needed. lowering energy prices a key part of his party’s Despite this, it must be noted that MPs’ election strategy. At our fringe event at the At our Liberal Democrat conference event, opinions towards renewables are only Labour conference, Tom Greatrex maintained Energy and Climate Change Secretary, Ed relatively less favourable in comparison to that setting a 2030 decarbonisation target Davey MP, described the 2020 EU renewable other longer-established energy sources. - as proposed in the party’s Powering Britain energy target as “critical”, but if the ambition When asked if renewables would benefit UK Green Paper14 – would help to provide the of generating 15 per cent of the UK’s energy energy security, a majority (73 per cent) of certainty needed to encourage investment demand from renewable sources is to be met, respondents agreed that they would. This and counteract any problems arising from the then high levels of investment will have to be view is held more strongly among Labour announcement that consumer energy bills sustained for the remainder of the decade. respondents than by their Conservative would be frozen until 2017. Without post-2020 targets, the uncertain counterparts. Eighty four per cent of Labour future of the renewables sector is likely to MPs surveyed said renewables would improve As things stand, while Labour’s talk of price deter investors. energy security, while the comparable figure freezes and other major interventions in for Conservatives was 56 per cent, with 26 per the energy market (such as the abolition of It is also important to note that investor cent disagreeing with the notion. Ofgem) are likely to have a chilling effect on perception is at least as important as the investment, it is not clear that committing in political reality. At our January roundtable While there are still some doubts about principle to a decarbonisation target will be event, Dima Rifai, Chief Executive of Paradigm renewables’ contribution to energy security, sufficient in itself. The exact level of such a Change Capital Partners UK, warned that the their impact on price is a bigger cause target is as yet unknown, and will probably impact of media reports on international for concern among MPs. Even Labour remain unclear until at least the summer of investors – such as headlines in the Financial respondents are unsure about renewables’ 2014. Times about policy uncertainty – was often ability to produce low and stable energy under-appreciated. Therefore, it is not enough prices in the long term, while 30 per cent of For their part, the Coalition parties rejected for the Government to construct a policy Conservatives strongly disagreed with the any calls to include a decarbonisation target in framework, it must also communicate this in a suggestion that renewables would help bring the Energy Act 2013. The uncertainty caused clear manner. down energy prices in the long term (in all, 63 by this has been exacerbated by the European per cent of Conservatives disagreed with this Commission, which gave way to British 14 Powering Britain: One Nation Labour’s plans to reset the suggestion). demands not to include country-specific energy market, Labour Party, November 2013

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Conclusion and recommendations

The renewables sector has made rapid turn, investment is vital to help reduce the progress in the past ten years and over this cost of renewable technologies in the long Work to build a political period it has contributed markedly to the term and to create jobs and growth, in the consensus: The next General UK’s economic wellbeing. The Department energy sector, and in other related industries, Election is little more than a of Energy and Climate Change estimates such as the insurance sector. year away, and its outcome that its policies have reduced the average is far from a foregone householders’ energy bills by up to five per With this in mind, we offer the following conclusion. While it is to be cent, and will make further savings by 2020.15 high-level recommendations to policy makers, expected that parties will want which we believe will give the UK renewables to differentiate themselves However, in order to meet ambitious industry the best opportunity to realise its on energy issues, this should domestic and European-level targets, potential. not be allowed to obscure the particularly in the longer term, the sector areas of agreement. Ideally, must grow further still. This will require 15 UK Renewable Energy Roadmap Update 2013, p. 16, investment, which needs policy stability. In DECC, November 2013 all three main parties should publicly commit themselves to a broad renewables strategy, to give investors long-term confidence, whatever the outcome of the 2015 vote.

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Bring the public with you: Recognise that investment Develop the domestic There is good evidence that today will lead to future supply chain: To maximise the public already warmly savings: Rising energy costs the benefits of an expanding accept the role of renewables have been driven by higher renewable sector, we must in general, but such support prices for fossil fuels, on which ensure that the UK develops is challenged by narratives the UK still depends for the a domestic supply chain. of rising energy prices. majority of its electricity. By This will allow the sector to The Government needs to accepting the up-front cost expand internationally, as well do more to communicate of investing in new renewable as providing jobs and growth the present benefits that capacity, the UK can diversify all around the country in renewables have brought, its energy portfolio and renewable energy, as well as and initiatives to encourage insulate itself from price spikes related sectors. community investment in in the future. renewables should be strongly supported.

15 David Tripepi-Lewis Director of Accounts and Projects [email protected] | 020 7593 5661 21 Dartmouth Street, Westminster, London, SW1H 9BP