Published on : Sep 16, 2015
The investors seeking new nuclear power and fracking locations could possibly be deterred by the U.K. government’s most recent moves made against renewable energy. The EY consultancy has warned that this decision holds no clear intent or rationale.
Britain has lost its place in the top ten bracket of energy producers and is now 11th in terms of attractiveness in renewables. This was the first time the U.K. has fallen out of the EY top 10. This drop in rankings comes after a series of policy changes that will reduce the government support received by solar and onshore wind technologies.
The U.K.’s 11th rank is three positions lower than its last quarter position. It now sits behind the Netherlands, Chile, and Brazil.
EY has reported that the multitude of policies launched by the U.K. in the last three months have reduced the appeal of renewables. More than that, the policies on green energy could even pose a detrimental effect on the non-renewable energy domain.
The Corporate Energy Finance Lead at EY, Ben Warren, said that a major bunch of the investors are now seeking logic in what seems to be a vacuous spree of policy-making.
He also added that this trend, if continued, could also pose a demoralizing effect on other areas, including shale gas, nuclear, carbon capture and storage, and offshore wind as well.
After the formation of a majority U.K. Government, the conservatives have announced that they will cut short the subsidies for onshore wind and solar farms that qualify as small-scale. They also announced plans to significantly reduce the subsidies for rooftop solar panels.