Government must adopt a 'sea-change' in attitude to renewables to avoid a near collapse of the industry, according to civil engineers
The UK's renewables industry will "fall off a cliff" unless there is a drastic change in the UK government's approach to clean energy subsidies, the Civil Engineering Contractors Association (CECA) has today warned.
In a stark warning to the Department of Energy and Climate Change (DECC) CECA said the renewables sector is facing a "near collapse in ongoing work" as a direct result of subsidy cuts and policy changes made in the past 12 months.
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DECC has consistently argued its reforms, which have included cuts to solar and wind subsidies, changes to tax relief, and delays in clean energy contract auctions, have been necessary to claw back projected overspend in the Levy Control Framework (LCF) and ease pressure on consumer energy bills.
But CECA chief executive Alasdair Reisner said the government must commit to a long-term energy strategy based on a diverse energy mix, and not deter "badly-needed investment" in low-carbon energy.
"Policy changes to date will lead to substantial job losses within the industry and its supply chains. If those skills are lost, the challenge of rapidly reskilling the sector will be extremely costly," he said in a statement. "We call on the UK government to reassess its approach to the renewables sector, adopt an evidence-based approach to renewables policy, and recognise the role it must play in providing the diverse energy portfolio the country needs."
CECA, which boasts more than 300 members and claims to represent firms who together carry out an estimated 70 to 80 per cent of all civil engineering activity in the UK, warns Scotland, which has evolved into something a hub for UK renewable energy, could face severe job losses and curtailed economic growth as a result of the government's stance.
The comments were made in response to the Scottish Affairs Committee's inquiry into renewable energy, which is currently collecting evidence on how the UK government's plans to reduce support for the sector will affect its long-term outlook in the country.
CECA's consultation response document calls on the newly-established National Infrastructure Commission to promote the development of low-carbon infrastructure and bring UK infrastructure "up to the standard of other developed economies". It also asks government to ensure the Commission is a "truly independent expert body" in order to promote trust in its findings.
In response to CECA's comments, DECC insisted that infrastructure investment is a priority area for the government. "We are investing in new energy infrastructure fit for the 21st century, boosting spending on innovation and doubling support for renewable heat and electricity over the next five years," a spokesman told BusinessGreen in an emailed statement.
The intervention is the latest in a wave of criticism aimed at the government's clean energy strategy from various facets of the engineering community. Last month the Institute of Chemical Engineers launched a blistering attack on the government's decision to scrap a £1bn carbon capture and storage competition, which it said threatens the UK's ability to meet its long-term climate change targets.
It was followed just days later by the release of a new study from the Institution of Mechanical Engineers that warned the UK faces an unprecedented "energy gap" in the next decade as old coal-fired power stations are phased out and the development of new clean energy generation is delayed.
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