The UK renewable energy sector has expressed overall appreciation for the measures outlined in the Chancellor's Autumn Statement, particularly highlighting the acceleration of grid connections and the decision to make “full expensing” a permanent fixture. “Full expensing” refers to capital allowance tax relief applicable to plant and machinery investments, offering support for green technologies.
RenewableUK's CEO, Dan McGrail, welcomed the decision, emphasizing its potential to encourage investments in clean technology manufacturing. The Chancellor's commitment to extend tax relief on freeports from five to ten years was also praised, with McGrail noting its positive impact on stimulating new investments in offshore wind manufacturing.
In tandem with the Autumn Statement, the government released its comprehensive response to Electricity Network Commissioner Nick Winser's report on expediting electricity transmission network development. The accompanying Connections Action Plan, a collaborative effort between the government and energy regulator Ofgem, aims to reduce grid access times for larger projects, hasten major grid upgrades, and provide potential cost savings of up to GBP 10,000 on electricity bills over a decade for those living near new transmission infrastructure.
Chris Hewett, Chief Executive of Solar Energy UK, welcomed the government's acceptance of Winser's recommendations, anticipating positive outcomes for solar energy investments and a potential reduction in the impact on consumer bills.
Furthermore, the government has committed to reforming the planning system to expedite approvals, introducing premium planning services with guaranteed accelerated decision dates for major applications and fee refunds if deadlines are not met.
RenewableUK anticipates further key announcements, such as the release of more details in March on the next year's Contracts for Difference (CfD) auction, aiming to secure a record capacity for new clean energy projects.
