CIVIL ENGINEERS WELCOME CONSERVATIVES ENERGY POLICY

Director general of the Institution of Civil Engineers Tom Foulkes said:

"The Conservatives Energy strategy could pave the way for the creation of a resilient, low carbon energy network to ensure security of supply in future.

“However, the fluctuating price of carbon has to-date discouraged private investment in low carbon alternatives and severely hindered progress towards a low carbon economy. A fixed floor for carbon pricing will build market confidence, encourage investment and hopefully kick start the industrial transformation we so desperately need.

“Clearly, transforming the energy sector in this way will require massive investment in new and upgraded infrastructure. A Green Investment Bank will go along way towards attracting private investment in the development of new technologies but there remains a need for a secure method of funding for the long-term investment in energy infrastructure.

"ICE has been calling for the creation of a National Infrastructure Investment Bank or similar funding unit, as a way of attracting the large volumes of private capital needed to deliver projects like this that will play a critical role in meeting low carbon aims. Such a funding unit has attracted support from across the political spectrum as it would ensure essential infrastructure continues to be built, without putting undue strain on the public purse."

A history of under-investment and outdated policy has left our energy network extremely vulnerable, deficient and reliant on unpredictable international markets. To meet future demand - which continues to increase - and at the same time reduce emissions significantly will require drastic reform of the energy sector with a focus on developing affordable indigenous low carbon sources such as offshore wind, marine and nuclear energy.   

”It is also very promising to see a plan for the acceleration of CCS technology. We cannot realistically hope to meet future demand without some continued reliance on fossil fuel power generation and CCS can take the environmental impact out of the equation. It should absolutely be a priority in any energy policy framework.

The 12 action points from the strategy

• A Conservative Government intends to take twelve key actions to put our energy system back on its feet. We will:
• 1. Ensure that Britain has a clear, consistent and stable energy policy
• 2. Establish a capacity guarantee in the electricity market
• 3. Establish a security guarantee for gas supply
• 4. Reform the Climate Change Levy to provide a floor price for carbon
• 5. Operate a streamlined planning process for large infrastructure investments
• 6. Facilitate nuclear power
• 7. Accelerate the demonstration of carbon capture and storage
• 8. Promote renewable energy
• 9. Revolutionise supply and demand by building an energy internet
• 10. Reduce demand by offering every household a Green Deal on energy efficiency
• 11. Electrify transport to reduce dependence on oil
• 12. Create a Green Investment Bank

Action 12: Create a Green Investment Bank

With so much of our generating capacity and energy infrastructure in need of replacement – and the global race to develop new energy technologies so important to our future prosperity – it is vital that we secure the finance to create an energy system fit for the 21st century.

A Conservative Government will act to help mobilise investment in our green energy future. This includes establishing, in conjunction with the Treasury, Green ISAs and creating new Green Bonds designed to leverage private sector finance and allow retail and institutional investors to participate more easily in the major task of building clean energy systems.

We will also create a Green Investment Bank with two main functions:

• To consolidate within a single institution the existing disparate sources of public investment in the low carbon economy, such as the Carbon Trust and the Marine Renewables Deployment Fund. This will provide a clearer focus for prospective investors as to where to go for investment help, will leverage in external investment and will ensure that public funds deployed are focused and efficiently managed

• To act as an intermediary to help attract and package investment opportunities in forms acceptable to investors. We have established a high-profile working group to advise on the key technical issues involved in the creation of the Bank including funding mechanisms, investment criteria and management. It is due to report after the election and before the end of 2010.