Warning over changes to renewables support

Proposed changes to the support mechanisms for clean power would damage investor confidence, according to trade body RenewableUK.

The UK Government wants to switch the inflation indexation calculation for the Renewables Obligation (RO) and Feed-in Tariffs (FiT) schemes from the Retail Price Index (RPI) to the Consumer Price Index (CPI).

In its response to the proposals, RenewableUK warned against making retrospective changes to the way renewable energy generation is supported.

Ana Musat, RenewableUK’s executive director of policy and engagement, said: “Retrospective changes are extremely atypical in the UK and would undermine our reputation as a stable investment environment.

“If this proposal were to be implemented, it’s likely that we would see investors pricing in the risk of changes like this every time they finance a project.”