Energy Policy

The Energy and Climate Change Secretary, Amber Rudd, has set out the Government’s future vision for energy policy in the UK.  The headline point is the phasing-out of coal-fired power stations by 2025.  Rather than a wholesale switch to renewables, the ‘decarbonisation’ of the UK’s electricity production will be achieved by a switch to gas generation.  This was be supplemented by nuclear, starting with Hinckley Point C, but with plans for a ‘fleet’ of new reactors.  There will be a place for offshore wind, but this will be conditional on being competitive on cost.  Renewable technologies that are of relevance to farmers and landowners such as onshore wind, solar and AD, look to be less favoured (despite being price competitive with nuclear).  In the speech Ms Rudd stated that ‘subsidy should be temporary, not part of a permanent business model’.  This fits in with recent moves on Feed-in Tariff cuts.  The Renewable Heat Incentive could also be at risk.  The full speech can be found at – https://www.gov.uk/government/speeches/amber-rudds-speech-on-a-new-direction-for-uk-energy-policy