Question

To ask the Secretary of State for Energy and Climate Change, what assessment she has made of the effect on investor confidence in the UK electricity generation market following the recent announcements surrounding the Renewables Obligation closure and reductions in feed-in tariffs.

We conducted an engagement exercise to better understand the views of stakeholders on the early closure of the Renewable Obligation to onshore wind. To protect investor confidence a grace period was proposed in June, and we have subsequently proposed amendments to this in response to stakeholder feedback over the summer. We consider this will strike the right balance between consumer and industry interests.

We also ran a consultation on changes to support for small scale solar projects under the Renewable Obligation and one on the feed-in tariff review. We strongly welcomed evidence from the sector during these consultations and we hope this will allow us to improve our understanding of the impact on jobs and investment.

The measures we announced are about getting costs under control, which is essential to provide the foundations for clean electricity investment in the future. We will still be delivering at or above the EMR Delivery Plan ranges and reaching at least 30% electricity generation from renewables by 2020. So we are still supporting a strong pipeline of projects that are bringing jobs and investment across the UK.