A new energy bill in Britain has many UK renewable energy companies worried about the future of green energy in the British Isles, particularly in its ability to meet government-mandated power generation levels by 2020.
The new bill, which is on its way through a “report stage” before a third reading in the House of Commons, contains major reforms to the structure of British renewable energy subsidies.The companies who rely on those subsidies feel it may hinder their plans to grow to meet the requirement of producing 15 percent of Britain’s electricity by 2020.
A new study published by the Renewable Energy Association in the UK was compiled from surveys taken by 68 of the nation’s biggest renewable energy producers, asking what they think about the bill and how it will affect what they do.
“Senior managers from 68 companies responded to the survey. Findings confirm the Energy Bill is cause for concern with 51% of renewables executives believing that Contracts for Difference will not be effective in bringing forward new renewable power capacity,” REA says on its website. “69% believe that the lack of an emissions target in the Energy Bill sends a ‘poor’ or ‘very poor’ signal to investors. Only 4% believe the UK has a ‘good’ or ‘excellent’ chance of meeting its 2020 renewable energy target.”
The survey also shows that these companies, despite their fears about the bill for the more distant future, see smooth sailing for at least the next six months.
“However, the survey shows no significant overall deterioration in employment over the past six months,” REA says. “Just under a half of companies reported broadly stable employment levels and nearly as many firms recruited staff as have laid them off. Looking forward over the next six to twelve months 62% of companies expect employment levels to stay the same, and twice as many firms expect to see employment increasing, compared to those expecting a decrease in employment.”
