UK business leaders, including energy users, investors and suppliers, have written to the government calling for clear leadership and stable policy on energy.

The letter states that building on the Paris Agreement on climate change much more energy will have to come from renewable and low-carbon sources, a transition that will be led by businesses.

But the transition will need to keep costs affordable and the energy supply secure.

“Getting the investment we need to address this requires clear leadership and stable policy from government. We need more of this in 2016, “ the letter said.

What is required is a “clear long-term framework – so companies can plan for construction projects that will last into the next decade”.

The letter added that the market needs to be open to all technologies, including new onshore wind developments, where they have local support.

“We also need to make sure we are investing in the capacity of UK supply chains to build on our expertise in existing and future technologies, from offshore wind to carbon capture and storage,” it continued.

To cope with intermittent sources of energy, such as renewables, more should be done to look at technologies to help store electricity and manage peak-time demand.

Renewable Energy Association head of policy and external affairs James Court said: “This crisis is the clear product of a lack of vision in energy policy.

“Technologies are here now that can supply this country’s power needs in a low-carbon, low cost way and can be rapidly deployed, including solar PV, wind, and energy storage.

“Gas and wholesale electricity prices are too low to incentivise new building and we may find ourselves in a situation this year where the government is subsidising nuclear, gas, and diesel while actively creates barriers to the deployment of the most cost effective renewables. 

“We’re advocating for a level playing field. A recent REA/KPMG report outlined that a more decentralised energy system will lower costs to consumers and increase our energy security.”

RenewableUK director of policy Gordon Edge said: “It’s also good to see the CBI calling for the government to provide a clear long-term framework to unlock investment so that we can plan ahead effectively in the next decade.

“The CBI highlights the importance of including new onshore wind developments in our energy portfolio as well as developing the offshore wind supply chain.

“The message is clear – business leaders and engineers are backing wind energy, just as the public has always done – and they’re urging the government to get on board.”

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