Philip Dunne calls on the Energy Minister to level-up capital allowances to enable renewable energy companies to have same incentive to invest in renewable projects as fossil fuel companies.
Renewable Energy Production
Philip Dunne (Ludlow) (Con)
10. What steps he is taking to increase renewable energy production. (903793)
The Minister of State, Department for Energy Security and Net Zero (Graham Stuart)
I am pleased to tell my right hon. Friend that growth in the renewables sector continues year on year, with the latest data showing that 3.4 GW of new renewable electricity capacity was installed last year alone. We will build on that further: we have now taken our highly successful contracts for difference scheme and put it on an annual basis, so allocation round 5 will open next month.
Philip Dunne
Oil and gas producers benefit from an investment allowance for investment in renewable projects in the UK, but existing renewable generators do not. Will my right hon. Friend make representations to the Chancellor, so that he can level up that anomaly and enable my right hon. Friend’s admirable renewable energy ambitions to be realised?
Graham Stuart
I thank my right hon. Friend for that question. As he knows, tax policy is a matter for the Chancellor, but I am working closely with him, along with the Secretary of State, to ensure that the electricity generator levy strikes the right balance when supporting households and businesses struggling with their energy bills. It is worth remembering that, as I have just mentioned, our main mechanism is the CfD, which provides support for renewable generators in a way that is certainly not true of those in the oil and gas sector.