Government challenged over investor confidence
In a response to the recent inquiry into the Department of Energy and Climate Change (DECC) by the Energy and Climate Change Committee (ECCC), ACE states that investors’ needs are not reflected through the design or implementation of policies.
The scaling back and scrapping of schemes linked to the energy efficiency supply chain have, according to ACE, led to a severe lack of investor confidence in the UK market, as cancelled policies have left companies with “physical overcapacity and a skilled workforce with too little to do.”
The group use the Green Deal Home Improvement Fund, the shelved government initiative encouraging energy-saving improvements to homes, as evidence of what they describe as the uncertainty surrounding the level of investment needed from the householder and the level of return that could be expected.
Wasted capacity and over-investment are also emphasised as major reasons for a fall in support for the UK’s energy sector, with ACE citing the industry’s increased investment in new capacity and skills in response to both the rising demand for installations and the Green Deal, only for the market domination of energy supplier programmes to continue.
Parliamentary campaigns and research group ACE argues that the industry wants a clear vision of the role that energy efficiency in buildings should play in the future energy system, along with robust estimates of the amount of energy efficiency investment needed and supporting policies.
“Support for less mature technologies such as solid wall insulation until the market develops to a point where it is self-sustaining and support for investment in the homes of households in fuel poverty, are needed now and will remain important,” the group states in the paper.
“Programmes delivering this support need to be designed to avoid the stop-start problems and uncertainties that have been an issue with previous programmes. A government infrastructure investment programme aimed at energy efficiency in low income households could deliver this."
