The chief executive of Advanced Plasma Power has welcomed the new Contracts for Difference (CfD) scheme in the draft Energy Bill on the basis that it may lead to less volatility.
Rolf Stein, from the company which produces waste to energy and advanced fuels technology, said that the Energy Bill might help lead to more investment in the sector.
He said: “The Government has sought to tackle head-on one of the key challenges facing the low-carbon energy sector – a lack of clarity and stability in terms of future energy prices.
“Uncertainty over the return on investment in clean energy technologies has long acted as a barrier to urgently-needed investment from the private sector, and it is encouraging to see the Government acting to address this.
“While the final details of the CfD and investment instruments have yet to be announced, hopefully such measures will reduce volatility in the price of clean energy.”
He also supported the idea of a strike price in CfD and that it will vary depending on the technology – at least in the short-term. Rolf Stein added: “This measure, combined with the pending review of the Renewable Obligation banding, has the potential to revolutionise the UK energy landscape.
“If properly directed, these financial incentives could put low-carbon solutions, many of which are home grown, right at the heart of the British economy. This would also send a clear message to private investors that the UK is committed to a low-carbon, clean energy future.”