Wind turbine firms demand Osborne adopt 2030 target

SIX of the world’s biggest turbine manufacturers have called on the Government to adopt a key green energy target to give firms in Yorkshire and across the country the “certainty” they need and prevent the UK losing out to France and Germany on investment.

A joint letter signed by multinational firms including Areva, Mitsubishi and Vestas has been sent to senior Ministers calling on them to include a target for the UK to ‘decarbonise’ its electricity supply by 2030 in the Energy Bill currently making its way through Parliament.

Yorkshire’s economy is hoping for a major boost from the emergence of new energy industries such as offshore wind and carbon capture and storage, with the region perfectly placed to benefit thanks to its proximity to the North Sea and wealth of engineering expertise.

Hide Ad
Hide Ad

But the letter, sent last week, makes clear the global investors who could trigger the boom require more commitment from the Government before they start pouring funds into the UK market.

“Investors are seeking clarity now on long-term political commitment,” the letter states.

“The marketplace is international, and the UK is playing catch-up with countries like Germany and Denmark with long-established supply chains.

“Unlike the UK, Germany already has a very ambitious 2030 renewable electricity target. France is currently considering a 2030 target, and it seems highly likely this will be a growing trend as countries seek to provide the long-term certainty needed to attract internationally mobile, large-scale industrial investment.”

Hide Ad
Hide Ad

The letter is unequivocal that firms are holding back from investing due to the UK Government’s failure to commit.

“We are aware of UK-based supply chain partners with investment plans on hold, or at risk, until greater confidence is achieved,” it states. “A firm commitment now to decarbonisation of the power sector would decisively address these concerns.”

The issue has been hugely controversial within the coalition, with Liberal Democrats pushing for the 2030 target to be adopted but facing strong opposition from Conservatives including the Chancellor, George Osborne.

Mr Osborne is reportedly concerned about the impact the target might have on his own well-publicised support for the gas industry, and had apparently successfully kicked it into the long grass after a tentative compromise deal was announced to leave the target out of the Bill but revisit the question in 2016.

Hide Ad
Hide Ad

However, the issue is set to reignite when the Energy Bill returns for its final reading later this month, after an amendment was tabled by a senior backbench Tory, Tim Yeo – who chairs the energy and climate change committee – that the target be included.

Labour has pledged to support the amendment, meaning a significant rebellion by the Lib Dems along with a small number of backbench Tories could see the Government defeated.