Energy Market Reforms
The government outlined a series of energy related reforms this week in order to introduce stability into the market. On Tuesday, a draft energy bill was brought before Parliament. The bill will extend feed-in tariffs to large scale energy projects, introduce emission performance targets for power stations and measures to ensure there is excess capacity in the system to provide security of supply. The draft bill will now be examined by a Parliamentary Select Committee and a full bill is expected later this year. Read more on this in British Chamber of Commerce blog here.
On Thursday it was announced that the next wave of cuts to solar feed-in tariff incentives will come into effect from August 1. The tariffs will be set to decrease on a three month basis thereafter, with pauses if the market slows down. All tariffs will continue to be index-linked to inflation. The new tariffs should give a return on investment (ROIs) of over six percent. The measures have been broadly welcomed by the solar industry.