Professor Dieter Helm has released the Cost of Energy Review which was commissioned by Government earlier this year. The Review argues that there is a simpler and more affordable means of decarbonising the energy system , including through amalgamated auctions and a higher carbon price. The REA agrees that large-scale thinking is needed in this time of transformation but argues that the report has fallen short of fully recognising the opportunities that are emerging from a more decentralised, renewables-oriented energy system.
Commenting on the review, James Court, Head of Policy and External Affairs at the Renewable Energy Association said:
"There is broad thinking in this report that the renewables industry can get behind, especially that we need to decarbonise in the lowest cost way, and that uncertainty and continual government interventions can add to overall costs. We are glad the report notes the huge cost reductions renewables have had. We agree it is time for policy reform that gives industry longer term certainty about how the sector will be structured so that companies can make proper investments in manufacturing capacity.
"The energy market is changing rapidly, and the future energy market can be lower cost, lower carbon and centred around the consumer. This report hints at the evolution of the industry, but perhaps doesn't fully recognise the fundamental shift that is happening from centralised and inflexible generation to a smarter, more connected and decentralised energy system, and the policy framework needed to make that happen."