In launching its submission to the Treasury this week ahead of the Budget on April 22, the BWEA – the UK’s leading renewable energy trade body – called for targeted Government intervention to ensure that Britain can meet its ambitious renewable energy targets.
BWEA Chief Executive, Maria McCaffery, said “Large scale wind deployment is vital to reaching the UK’s goal of generating up to 40% of our electricity from renewables by 2020.
The current economic climate has caused a number of developers to put projects on hold, threatening the UK’s targets, and leaving the country exposed to volatile fossil fuel prices. Building a clean energy sector in the UK is an important part of our economic recovery, and we need to maximize the opportunities to develop sustainable energy projects which would otherwise be delayed by the recession.
We are keen to work closely with Government to deliver solutions to this renewables crunch, and to secure the UK’s long-term competitive advantage as a magnet for low carbon investment.”
Due to the global economic slowdown, a number of key projects which are currently seeking finance now face potential delays, and threaten the UK’s ability to meet its 2010 and 2020 renewables targets. Independent onshore developers in particular are struggling to find finance, with projects being delayed and the rate of new applica-
Industry leaders are looking to work closely with Government to alleviate the impact of the economic downturn. The BWEA’s Budget Submission sets out a range of actions that could be taken to reduce risk in our sector and encourage bank lending.
McCaffery said “The fundamental economics of wind remain sound, and in the longer term commodity prices are likely to continue to fall, while increased competition in the supply chain will also bear down on prices. However, today, assistance is needed to help overcome a once in a generation economic downturn affecting the wind and marine energy sectors.”