Friday 1 March 2019

New inquiry into future investments in UK energy infrastructure

The Business, Energy and Industrial Strategy (BEIS) Committee has launched an inquiry into future investments in energy infrastructure projects in the UK.

It will examine whether the government needs a new approach to attract investment to help deliver a low carbon and low cost energy system while securing energy supplies for the long term.

The Committee is inviting evidence until 3rd April 2019 on potential investments across the energy industry, including power plants, grid flexibility and heat decarbonisation.

It is also looking at the challenges of raising finance in clean energy technologies such as renewables and battery storage.

The inquiry comes amid recent decisions by Hitachi and Toshiba to halt new nuclear power projects at Wylfa at Moorside and concerns over how the ‘nuclear gap’ for low carbon electricity can be filled.

Rachel Reeves MP, BEIS Committee Chair said: “In the wake of investment decisions over nuclear plants at sites such as Moorside and Wylfa, a giant hole has developed in UK energy policy. With coal due to go offline and the prospects for nuclear looking unclear, the government needs to set out how it will create the right framework to encourage the investment needed to plug the gap.

“In this inquiry, we want to examine the government’s approach to creating the right conditions for investment to deliver the secure energy capacity to meet the nation’s needs. A bigger shift in our energy infrastructure to a low cost, low carbon energy system is necessary. As a Committee, we will want to consider what more the government needs to do to attract greater investment into financing future energy capacity, including renewables.”