The REA’s twice-yearly business confidence survey revealed that confidence in the sector has increases and that they will increase turnover, new business and employment over the next six to 12 months.
Confidence in the Contracts for Difference (CfD) regime is growing, with 27 per cent of respondents saying they have a fair degree of confidence in it, and 4 per cent saying good or excellent support.
The number with poor and very poor confidence in the CfD regime fell from 20 per cent and 36 per cent respectively, six months ago, to 13 per cent and 27 per cent.
This is likely to be as a result of the publication of the draft strike prices and more information about the contracts.
However, the survey was completed before the Prime Minister promise to “roll back green regulations”, and despite reassurances from government that renewable policies are not at risk, the REA said that the perceived risk from investors has increased, which has in turn increased the cost of capital and “threatens the jobs and investments we need”.
REA chief Executive, Dr Nina Skorupska, said the sector is “poised to significantly grow its contribution to employment and economic recovery”.
She added: “However, these green shoots are still fragile, and the UK’s chances of meeting the binding 2020 targets appear remote.
“Although Government has confirmed that funding for renewables is not at risk in the green taxes review, consistent messaging on Number 10’s commitment to the green agenda is absolutely vital.”
Peter Dixon, director at Kepler Energy, who responded to the REA survey, said: “Government needs to be consistent and stop giving out contradictory messages (George Osborne, please note). This rattles investors.”