The CBI has called for a “clear and regular” Contracts for Difference (CfD) pipeline, as part of its Budget submission.
The business group said such a pipeline would help support low carbon investment in the UK and also called for carbon price support to be frozen until 2022.
The group’s Budget submission also calls on ministers to establish an industrial energy efficiency scheme in consultation with the private sector “as soon as practically possible”.
The CBI’s director general, Carolyn Fairbairn, said the energy sector needs the “underpinning policy stability and certainty to support investment and innovation”.
“Policies which grab headlines are often ones which are detrimental to the long-term goal of attracting investment into a renewed UK energy infrastructure,” said Fairbairn.
“To make a real difference, politicians need to work with companies in the interests of consumers, putting a real emphasis on engagement and energy efficiency.”
Earlier this month, ministers announced up to £557 million will be available in a new set of Contracts for Difference (CfD) auctions planned for spring 2019.
“The CBI is recognising that the lowest cost source of new power, onshore wind, is good for British business, and allowing onshore to compete for new CfD will also benefit consumers,” said RenewableUK’s head of public affairs, Luke Clark.
“Cheap, fixed-price power from onshore wind can ease upward pressure on household bills, which is a key objective for the government.
“Last week, the government confirmed a budget for new offshore wind contracts which will bring billions of pounds of new investment into the UK,” added Clark.
“We look forward to hearing more detail from Government on the timing and the next set of auctions, which will allow developers and the supply chain to plan deliver this ambitious infrastructure programme and create thousands of jobs in the UK