Falck Renewables has called on the UK to give a clear indication of post-Brexit support for low-carbon energy after the government formally triggered the process for leaving the European Union.
“Falck Renewables’ presence in the UK is not dependent on the UK’s membership of the EU,” said chief executive Toni Volpe.
“However, the government should set out its commitment to attracting new investments in the renewable space, so that companies like ours know the UK still presents a positive investment case.
“That’s why we are looking to the Emissions Reduction Plan to paint a picture of a post-Brexit energy policy that makes the most of least-cost renewable technologies, like onshore wind, and provides us with the stable framework needed to develop new energy market infrastructure.”
Volpe’s comments came after a letter signed by UK Prime Minister Theresa May giving official notice of Brexit under Article 50 of the Lisbon Treaty was delivered to European Council president Donald Tusk.
Brexit and the resulting lack of announcements about future subsidies is also causing a period of inertia and stalling many new projects, according to accountants MHA MacIntyre Hudson.
“It is creating a very challenging and uncertain time for renewable and sustainable energy businesses,” said Rachel Nutt, MHA MacIntyre Hudson tax partner and head of renewable and sustainable energy.
“Even with the advent of more innovative battery storage capacity and falling panel prices, the sector needs a new subsidy announcement to gain serious momentum in the areas of on shore wind and solar,” she added.
A new tax law could also provide another challenge for renewables developers, the company said.
“The new transactions in land legislation could result in many large-scale projects being subject to the higher tax charge of income tax rather than capital gains tax,” said Nutt.
Image: Theresa May (HMG)
