A new report has raised questions about the government’s commitment to green energy, indicating that the UK has fallen behind Italy on renewables policy.
The latest green energy league table compiled by Ernst & Young put Britain in sixth position, one place lower than last year. The Country Attractiveness Indices study also noted that investment in clean energy at the start of the year had fallen to its lowest level since 2009.
“There is significant concern across the green energy sector that the government will shift its focus towards natural gas as an alternative to renewables,” said Ernst & Young energy and environmental finance leader Ben Warren. “The Electricity Market Reform needs to deliver the right framework to stimulate investment across all forms of energy generation.”
While Mr Warren described the government’s newly-published draft energy bill as a “step in the right direction”, he stressed the importance of improving the cost-effectiveness of renewables in an effort to stimulate innovation and investment.
The coalition’s plans to replace existing subsidies with a new contracts-for-difference system have been met with criticism from green energy campaigners as well as utilities suppliers including Scottish and Southern Energy and Ecotricity.