EY comment on gas generation strategy and Government's plans to simplify green tax
Ben Warren, Environmental Finance Partner at EY said:
“The government's gas generation strategy clearly demonstrates the increasingly important role that gas fired plants will play in the UK’s energy mix, particularly in the country’s efforts to address security of energy supply and to make a cost effective contribution to lower emission power production.
“However, like all energy technologies, gas is certainly not the silver bullet. It is imperative that the UK continues to invest in renewables to help improve the cost competitiveness of technology, especially at a time when onshore wind and solar PV are tantalisingly close to competing with conventional sources of energy. More importantly we need to ensure that the UK is well placed to drive some strategic value out of the renewable energy sector in terms of jobs and economic growth. It would be unforgivable if in a decade's time the UK was a net importer of renewable energy technology, jobs and know-how.”
With regards to the Government's plans to simplify the green tax, Ben Warren added:
“It is a welcome relief to many large organisations, both in the public and the private sector, that the CRC (Carbon Reduction Commitment) is to be further simplified. Despite placing the importance of reducing consumption through increased energy efficiency in the spotlight and raising the accountability of energy efficiency performance to Board level, its current administrative burden appears to outweigh many of the benefits.
“In fact many will see the decision not to scrap the CRC altogether as a happy compromise. The scheme keeps large organisations focussed on reducing carbon emissions, but also brings in much-needed 'green tax' revenue to the Exchequer. Finally, it ties in with the government's increased emphasis on energy efficiency in the Energy Bill.”