The Business, Energy and Industrial Strategy
Committee has today launched an inquiry to examine
the outlook for future investment in energy infrastructure in the
UK. The Committee will be looking at whether the Government needs
a new approach to bring forward investment to deliver a low
carbon, low cost energy system and secure energy supplies for the
long term.
The Committee’s inquiry is launched in the wake of recent
decisions by Hitachi and Toshiba to halt new nuclear projects at
Wylfa and Moorside and concerns over how the UK’s ‘nuclear gap’
for low carbon electricity can be filled. The inquiry will
examine the challenges to raising finance in clean energy
technologies such as renewables and storage. As part of its look
at the Government’s approach to attracting investment in energy
generation, it is also likely to look at the potential future
financing of nuclear power, and concerns around foreign investors
in this technology.
MP, Chair of the Business,
Energy and Industrial Strategy
Committee 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 off-line, 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.”
Financing energy infrastructure inquiry - terms of
reference
Evidence is invited on potential investment across the energy
sector, including power plants, system flexibility, and heat
decarbonisation.
Submissions can be made on the Committee’s website. The deadline
is Wednesday 3 April 2019.
The Committee is inviting written submissions on the following
points:
- How
do recent investment decisions on nuclear and trends in low
carbon investment affect the UK investment outlook for energy
infrastructure? Is there a case for changing the
Government’s current approach to delivering a low cost, low
carbon energy system? How could the ‘nuclear gap’ be filled?
- How
attractive is the UK energy sector for investment compared to
other countries? Are there particular technologies
which are more – or less – attractive to investors under current
arrangements?
- How
has Government policy improved the UK energy investment
environment over the last three years?
- What
types of investor can we expect to finance future UK energy
infrastructure? What are their criteria for investment, including
on risks and returns? Does it matter if investors for
specific technologies are largely from overseas?
- What
role should the Government play in providing financial support
and sharing risks for new energy infrastructure? Are
existing financing mechanisms, notably the Contracts for
Difference, fit for purpose? Are there any practical issues,
or potential unintended consequences, that could affect the
feasibility of implementing alternative support models (such as a
Regulated Asset Base)?
- What
further steps should the Government take to increase investor
confidence in the UK energy sector?
