Cameron gives support to green energy

Speaking specifically on the environment for the first time since pledging to lead “the greenest government ever”, the Prime Minister said the UK was now one of the best places in the world for green energy, investment and jobs.

In a riposte to critics of renewables, including Tory backbenchers, Mr Cameron said he “passionately” believed the rapid growth of renewable energy was vital for the future.

But his comments were dismissed by environmentalists who said the sector, which is growing by four per cent a year while the rest of the economy slides back into recession, needed consistent support from across Government.

Chancellor George Osborne has been accused of “anti-green rhetoric” after warning green policies could be a burden on business.

In the Budget he championed gas and handed out £3bn in tax breaks for North Sea fossil fuels.

Yesterday, the Prime Minister said he believed growth in renewables in the UK was not just good for the environment, but “good business” too.

He told Ministers from 23 countries attending a clean energy meeting in London: “Of course, nuclear energy, cleaner coal, oil and gas – including shale gas – and carbon capture and storage are all going to have a role to play.”

But he said: “I passionately believe the rapid growth of renewable energy is vital to our future.”

He said the challenge was now to make clean energy financially sustainable and to bring costs down. “We don’t just need greener energy, we need cheaper energy”.

Renewables could become among the cheapest sources of energy for the UK, he suggested.

But the technology was still relatively expensive, although the cost of solar and onshore wind farms had fallen and the Government would work with industry to reduce the costs of offshore wind.

He said that when the costs of renewables fell, it was right that consumers should pay less in green subsidies.

Companies also announced £350m of new investment in UK renewables yesterday, representing 800 job. E.ON said it was awarding a major contract for the installation of cables for its Humber Gateway offshore wind farm to British company Balfour Beatty.