The industry has welcomed the announcement of the Energy Bill in the Queen’s Speech, but is awaiting details on how it will deliver electricity market reform – an issue that will affect confidence in nuclear power, renewable energy and also the Green Deal.
The proposed legislation is still being finalised, although the Business Green website quotes a DECC spokesman saying the a draft is likely to be published soon, with the measures going on the statute book in 2013 to support new projects in 2014.
According to Construction News, the proposed Energy Bill will create subsidies for low-carbon energy and incentives for power companies to invest in new technologies to deliver “secure, clean and affordable electricity”
It is expected to include proposals a new subsidy mechanism for renewable and low carbon energy, including nuclear power; and a tough new emissions performance standard that would ban new coal-fired power stations that do not feature carbon capture and storage (CCS) technology.
Companies from across the energy sector and green economy have been waiting to see the details of the bill, with a host of firms in the wind energy, biomass, and nuclear sectors poised to finalise investment decisions based on the level of support available.
On the other hand, there has also been been speculation that the costs involved in de-carbonising the UK’s electricity supplies, by turning to nuclear, renewables or CCS technology, will ultimately add to consumers’ average fuel bills – thereby creating an incentive for consumers to take up the Green Deal in the future.
Commenting on the speech, the director general of the Institution of Civil Engineers Nick Baveystock said: “To take us forward the Energy Bill has to provide the clarity and certainty on which private investors can rely if they are to be prepared to make long-term investments in our future. We cannot just keep delaying if we want to keep the lights on in the long-term, meet our carbon targets, and, importantly, benefit from exporting renewable technology with the associated effect on jobs, growth and skills.”
Paul King, chief executive of the UK Green Building Council and quoted in Construction News, hoped that the Energy Bill would provide a vehicle for the government to endorse the long-awaited roll-out of Display Energy Certificates into the commercial building sector. These show operational energy use and carbon emissions and could help UK businesses save money.
He also called for greater intervention from government through incentives such as reduced stamp duty to encourage households to take up the Green Deal.
