Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, whether his Department has made an assessment of the effect of not bringing forward new funds through the Levy Control Framework before 2025 on future renewable and low-carbon investment in the UK; and if he will make a statement.

The Government’s sustained support for clean energy has led to dramatic falls in the costs of some renewable electricity generation technologies. For example, Government support has helped halve the Contracts for Difference strike prices needed to bring forward new offshore wind projects.

Nevertheless, the Government is committed to keeping energy costs as low as possible in order to protect consumers. In Autumn Budget 2017 the Government announced the Control for Low Carbon Levies, which sets out that there will be no new low carbon electricity levies until the burden of such costs is falling.

The Control does not rule out future support for any technology. In addition, all existing contracts and contracts and commitments will be respected, including the commitment of up to £557 million (in 2011-12 prices) for further Contracts for Difference confirmed in the recent Clean Growth Strategy. The significant cost reductions that were achieved in the last Contracts for Difference auction indicate that this support could secure far more low carbon electricity than originally anticipated.