Industry has welcomed UK government proposals to address rising gas prices by accelerating the roll-out of clean power and electrification.
RenewableUK said the UK’s response to global gas price spikes should be to speed up deployment of homegrown renewables alongside rapid electrification to boost energy independence.
Energy UK added that the government’s announcement marks a step change in electrification, with measures to expand clean power supply and increase uptake of electric vehicles, heat pumps and solar.
“The key step of reducing the link between the volatile global gas prices and the cost of electricity is the best way to protect households, businesses and industries against the unpredictable and volatile costs of fossil fuels in the long term, to strengthen the UK’s energy security,” said Tara Singh, chief executive of RenewableUK.
“We will work constructively through the details of all the measures being announced by the Government, but we have to ensure that we take investors with us.”
“Today’s announcement promises a step change in the UK’s approach to electrification, and in fulfilling the promise of warmer homes and cheaper bills,” said Dhara Vyas, chief executive of Energy UK.
“The UK wins when there is the stability and certainty for companies to invest and we’ve seen the results in the roll-out of clean power, through CfDs for example, which continues to increase our energy security and reduce our reliance on gas.”
“The proposed expansion of fixed-price CfDs, alongside incentives for legacy ROC-backed assets to participate, is a credible pathway to reducing gas price exposure over time,” said Aurora Energy Research.
“Careful design will be needed to avoid locking in temporary high prices but, if done well, there is an opportunity to provide a fair return to commercial generators whilst delivering modest consumer bill savings from lower financing costs.”
“The renewable energy industry in Scotland welcomes the Energy Secretary’s latest measures for the further growth of clean power generation across the country, which we see as a positive step towards addressing elevated global energy costs,” said Claire Mack, chief executive of Scottish Renewables.
“However, it is essential that the UK Government avoids introducing policies that could undermine investor confidence, particularly given the current economic and operational pressures facing the industry.”
“There is also a clear need for urgent progress on outstanding issues such as transmission network charging, which are critical to ensuring that Scottish projects can compete effectively in future Contracts for Difference allocation rounds.”
RenewableUK warned that uncertainty over potential taxation changes must be clarified to avoid increasing investment costs ahead of the next clean power auction.
Energy UK also cautioned that unclear government communication had already impacted market confidence, with energy stocks losing value amid policy uncertainty.