Of around 100 industry executives surveyed by law firm Freshfields Bruckhaus Deringer, 77 per cent said the investment case for offshore wind had been boosted by EMR, compared to 54 per cent for gas generation. Nuclear lagged behind with only 41 per cent believing that the proposals would help attract investment.
The results also showed that 77 per cent of industry executives do not expect EMR to enable the UK to meet its 2020 decarbonisation target. This was attributed to government’s targets being “over-ambitious even at the point at which they were set”.
Respondents were also pessimistic about meeting 2020 private sector investment targets, with 64 per cent saying EMR would not enable the desired outcome. The latest government estimate of £110 billion was seen “as out of reach” and some questioned whether it was possible to spend that much by then.
Alan Rae Smith, head of energy projects at Freshfields, said: “The markets see the targets, both financial and time related, as too ambitious, and investors are simply unsure as to what will happen to their money. Unless clear incentives for renewables are introduced in the UK together with consistent policy, long-term commitments and the prospect of cross-party agreement, investments are likely to flow to other countries”.