The report, published today, claimed the government should establish a “low regrets” levels of technology deployment for low carbon generation, and then ensure the policies are in place to incentivise investment in them.
This approach, according to the report – the second of three in the Future Electricity Series from Carbon Connect, would help provide the longer term clarity that would “secure the longer term clarity” for the sector.
The report adds that the extra money invested into renewables could be more than offset by energy efficiency savings, although warns that the government needs to do more to show how these savings will arise.
These investments could be missed, delayed or more expensive if there is “insufficient confidence” in the sector if the government fails to put the policies in place.
The report also stated that, if these incentives are put in place, investment in UK renewables would help bring about “hidden benefits”, such as ensuring longer stability to electricity bills and boosting the country’s economy.
Co-chair of the inquiry, Baroness Worthington, said: “Renewable sources of energy are an inexhaustible and largely UK located source of power we are only just beginning to harness at scale.
“In considering their future it is important to neither exaggerate nor dismiss their evident potential and to consider the issues relating to cost and sustainability holistically.”