Target-setting for Renewables not the answer, say business leaders

15 September 2005

Business today echoed criticism of the Government's policy on renewable energy. Following a damning report from the Public Accounts Committee, the Institute of Directors (IoD) agreed that setting targets and subsidising renewable technology was not the most effective way of achieving a balanced energy supply. The IoD also called on the Government to speed-up the debate over the future of nuclear power.

Geraint Day, Head of Environment Policy at the IoD, said:

"It is essential that a reliable energy supply is maintained to individuals, businesses and public services. At present there are many uncertainties around energy. These range from the mix and security of supplies to the price of energy itself. Anything that adds to the cost of energy at this time must certainly come in for public scrutiny.

"Given previous developments in science and technology it seems very likely that new forms of energy supply, including some of the current renewable sources, will indeed come to play a much greater role over time. However, simply setting targets and effectively subsidising particular technologies at this stage is not necessarily the best way to go about this."

Alternatively, the Government should be investing in R&D and education now, to solve the problems of the future, the IoD said.

"Investment in research and development and educational infrastructure, to ensure enough expertise is available to tackle these big issues, are all key for the energy agenda. And yes, the Government should honour its promise made in 2003 to start a debate on the need - or not - for nuclear power," Geraint Day added.