Several articles in the last few days, appearing in the Guardian, Edie and WWT have been critical of George Osbourne’s summer budget, which has dealt a heavy blow to the renewable energy sector. The biggest issue is the removal of the Climate Change Levy (CCL) exemption for renewables which will leave renewable electricity generation eligible for the levy.
According to Utility Week this move will also affect the wastewater treatment industry, with the removal of the CCL exemption worth an estimated £11m per year in cuts to the Anaerobic Digestion Sector.
The sting for the renewable energy and anaerobic digestion sectors, as well as climate change activists has been made all the more painful by the chancellors increased fiscal support for North Sea Oil Fields.
The effect of the move is already being seen. The energy company, Drax, who recently made changes to convert its major power station to biomass, saw its share prices plummet in the aftermath of the chancellor’s announcement.