Source: BBC Radio 4: Today Programme
URL: N/A
Date: 25/07/2012
Event: Chairman of Renewable Energy Alliance on decarbonising energy sector
People:
James Naughtie: Time for business - Leslie Curwen is here with more news about wind; we were talking about it earlier -
Leslie Curwen: We certainly were.
James Naughtie: - with respect to electricity generation.
Leslie Curwen: Thanks, Jim. As we've been hearing, the government this morning announced a 10% cut in subsidies for onshore, land-based wind farms, sticking to a reduction which was announced in October. Some Conservative backbenchers had been pressing for cuts of 25%. The announcement came after months of delay. The chairman of the industry body the Renewable Energy Alliance is Martin Wright, who's on the line from Southampton. Martin Wright, we've had warnings from your industry that steeper cuts in subsidies might damage investment and confidence. So is this the result you wanted?
Martin Wright: Broadly, yes. We're very pleased that it has - it's actually come out. The more worrying aspect is that there has been some political wrangling in the background. What the industry needs, more than anything, is a stable regime against which to make this level investment and bring in the new investment that is required. Supply chain finds it difficult to operate when you don't have this consistency going on.
Leslie Curwen: Let's talk about the idea of a target to decarbonise the energy sector by 2030. Now this morning's document shows the Energy Secretary Ed Davey has agreed that if gas proves cheap, it will still play a major role in electricity generation past 2030. So is that idea of a target dead in the water now?
Martin Wright: Well, we don't know. We sincerely hope not. The UK has signed up to decarbonise to 2030 and really we need to increase our level of renewable generation across all the technologies, to match, certainly, that of Europe. At the moment, we -
Leslie Curwen: Does it matter if that target is dead in the water?
Martin Wright: Um... I think it... Well, we don't know, is the truth of it. The costs of renewable generation are coming down, and certainly our view at the Association is that the business case for renewables is improving and becoming more and more compelling as time goes on. So we also have to see what actually happens to the gas prices, because obviously if you see great volatility in the gas market, coupled with the falling prices, as we've seen with the likes of solar, then you'll get a crossover point. But I still believe that we should be sticking to the target we have set.
Leslie Curwen: I've got to ask you - is this too much subsidy to ask for, from hard-pressed taxpayers?
Martin Wright: No, I don't believe so, because what we're looking at is that the renewables are going to give us a long-term advantage, a huge competitive advantage for the UK. We will be reducing our reliance on fossil fuels - and remember, we will be competing for these in the world markets - and we'll be using resources we have, and we'll be stabilising our prices for power production in the future.
Leslie Curwen: Okay. Martin Wright, chairman of the Renewable Energy Alliance, thanks very much for joining us.