STATEMENT: Changes to the Renewables Obligation Scheme ‘disappointing’

Responding to the decision to link the Renewables Obligation Scheme to the Consumer Price Index (CPI), UKSIF CEO James Alexander said:

“The government has recently taken several positive steps to strengthen the investment environment for the UK’s clean energy sector. But we are disappointed by the decision to link the Renewables Obligation scheme to the consumer price index, which risks sending the wrong signals to the market.

“This type of retrospective policy change could increase the cost of capital for longer-term clean energy infrastructure investments. It may also influence how investors assess the underlying regulatory risks around funding renewable projects in the UK going forward.

“The government must stay focused on providing stable and predictable policy frameworks that enable capital to be deployed at scale.”