Marine Renewables Fiscal Support 2020-03-24
2020-03-24
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The UK Government aims to achieve net zero greenhouse gas emissions by 2050, encouraging the use of low-carbon technologies such as marine renewables. However, there is a concern that without sufficient fiscal support, companies will move their operations overseas.
What discussions have you had with Cabinet colleagues regarding fiscal support for the development of marine renewable energy sources? The industry has proposed an innovation power purchase agreement to help bridge the gap between research and commercial deployment but are facing delays from the government. Developers cannot wait indefinitely, they will take their projects elsewhere if necessary.
I am aware of 1,700 people working in marine renewables across Orkney and Shetland, Wales, and Scotland. The previous Exchequer Secretary received a letter on this matter but did not have time to respond before moving roles. Currently, marine renewables cost five times more than wind or solar technologies, making it challenging for them to compete without significant support. Nonetheless, the Government is open to engaging in dialogue with the industry as we work towards resolving these issues and progressing forward constructively.
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