Michael Lewis, CEO of E.ON Climate and Renewables GmbH, took the opportunity to share his views on government clean energy policy reversals, during his speech at the Clean Energy Summit. In his keynote debate on using the UK’s low carbon infrastructure to boost the economy, he was joined by Sir David King, the Foreign Secretary’s Special Representative for Climate Change. Lewis voiced critical observations that government is misleading international renewable energy investors through their series of policy reversals.
The speech took place early on the first day of the Clean Energy Summit and outlined the fact that decisions made by the Conservative government within the last year, have led to a devaluation of the UK’s power to attract investment. “The UK has been E.ON’s largest market in terms of gross investment but since the election last year, there have been a number of very substantial policy reversals here. This sends completely the wrong signals to investors.”
Lewis claims the removal of a climate change tax exemption for renewable energy, which was introduced in August 2015, is one of the reasons companies like E.ON are changing their views unfavourably towards the UK’s renewable energy market. Further factors impacting this shift are the changes to planning and removal of technologies; particularly onshore wind from the Contracts for Difference (CfD) mechanism.
He argues that the UK’s reputation for being one of the most stable markets has rapidly changed to one representing risk and instability and this within a very short space of time. “I think if the UK is to continue vying for investment in renewables we really have to look at some policy adjustments,” he said.
Changing his focus towards Europe, Lewis pointed out that again a shift is taking place in relation to the US and EU with President Obama’s clean energy plan. For the first time in his 20-year career within clean energy, America has outlined a clearer vision for building out renewable energy.
He maintains that throughout the last ten years, Europe has been a leader due to the strong coherence of its policies and consistency of its objectives. According to Lewis, cracks are beginning to show. He believes a positive policy framework in the EU is needed in order to boost the growth of renewables and reduce emissions from power plants.
“It’s still all to play for but the EU generally and the UK specifically needs to come together and deliver some coherent policies across the renewable energy area,” he added.
Lewis’ views merely add to the mounting criticism the UK government has received since changes were implemented in May 2015. The Energy and Climate Change select committee confirmed earlier in March that indeed recent policy changes had unsettled investors. The UK government may need to agree on reforms in order to regain trust and re-establish attractive investment opportunities.