UK renewable energy trade associations have slammed the government’s Spring Budget as a missed opportunity to mobilise investment in the sector.
RenewableUK executive director of policy and engagement Ana Musat said the Chancellor’s Budget does not enable the industry to build new projects faster or grow supply chains.
She said the increase in capital allowance rates was welcome but that the incentive only lasts for three years and will do little to attract capital required to build key infrastructure such as ports and grid.
“A review of the capital allowance regime as a whole and clarity about its long-term stability are needed to ensure the UK remains an internationally competitive investment destination,” Musat said.
She continued that the creation of Investment Zones could enable the expansion of supply chains, particularly in offshore wind, but “does not amount to the comprehensive industrial strategy we need urgently”.
“Overall we need a much bigger response to match the incentives being offered to renewable energy developers by the US and the EU – this wasn’t forthcoming today, and we hope the Chancellor’s announcements later this month on the UK’s pathway to net zero and energy security will remove the key fiscal and non-fiscal barriers to the growth of the renewables sector,” she added.
The Association for Renewable Energy and Clean Technology (REA) meanwhile criticised the government’s “clean energy reset” as a “missed opportunity for the UK”.
Frank Gordon, Director of Policy at the REA, said: “While we welcome this support and acknowledge the tough economic backdrop, it was disappointing that the Budget offered no new support for moving to long-term solutions to tackle the energy crisis such as decarbonising heat, energy efficiency, securing investment in Net Zero supply chains in response to US and EU support, no compensatory measures for EV drivers from the fuel duty freeze and nothing on moving to a more Circular Economy.
“Much attention will turn to the Autumn Statement where there was a commitment to respond to the supply chain investment requirements in response to the likes of the US Inflation Reduction Act.
“Overall, today’s statement marks a missed opportunity as the US and EU push forward in attracting low carbon investment, while the UK risks falling behind.”