Why is government investment in renewable energy drying up? We need more of the "green crap," not lessby Rachel Reeves / February 20, 2018 / Leave a comment
This year marks the 10th anniversary of the UK Climate Change Act, which committed the UK to cutting greenhouse gas emissions by 80 per cent by 2050, compared to 1990 levels. The government published its Clean Growth Strategy in October. This should set out plans to achieve our emissions reduction targets for the period up to 2032, but by the government’s own admission, they haven’t worked out how to fully meet the targets yet.
An independent assessment of the plan shows that urgent action is needed to fill the policy gap. In particular, action is needed on: electricity, heat, transport and carbon capture and storage.
There are some grounds for hope. The cost of renewables has been falling. On-shore wind and solar prices have fallen, for example: experts say on-shore wind could be built for £50/MWh, and several on-shore wind developers claim they no longer need subsidies. This makes on-shore wind the cheapest of the new technologies—far cheaper than the £92.50/MWh price of the new nuclear power station at Hinkley.
There’s been some progress with off-shore wind, the price of which fell to £57.50 per megawatt-hour (MWh) in September, down from £140 in 2014. But these reductions are largely down to government support.
And therein lies the problem. The 2010 coalition moved from being the “greenest government ever” to the government that wanted to “get rid of all the green crap.” Things have become worse. Last November, Greenpeace denounced the Chancellor’s Budget as “one of the least green budgets ever.” It revealed there will be no new money for renewables until 2025.