“Plans to accelerate upgrades to the transmission network, when coupled with last week’s announcement on increased strike prices for the next renewables auction, send a positive signal to the market that the Government is listening to what investors need. Planning and consenting delays are one of the main barriers to the delivery of more renewables on to the grid, and so the adoption of Nick Winser’s recommendations is welcome news.
“The announcement on full expensing tax relief and the Green Industries Growth Accelerator of £960million will also be well received, and adds to funding already available for low carbon projects. Businesses will be keen to see the detail on how to access these funds and what the criteria will be. We need to see support focused on the areas that will really boost our Net Zero efforts, and where the UK can grow supply chain capability.
“While these are important steps to build confidence for investors in the energy transition and address some of their concerns, we need to look at how this stacks up globally. If this is the long-awaited response to the Inflation Reduction Act, and other support packages such as the EU’s Green Deal Industrial Plan, then fiscally it falls short of the $379 billion on offer in the US. Time will tell if this is enough to convince investors that the UK is still a good place to invest. We are in a global race for green investment so we cannot be complacent and rely on past progress to entice global investors to the UK.”
