Energy UK Warns, Windfall Tax On Generators Can Increase Renewable Energy Investment Costs

Energy UK has warned that, a windfall tax on the generators can possibly risk the future investment into the energy infrastructure, along with impacting the transition to the net zero target and prolonging the reliance of the United Kingdom on the volatile international gas.

According to a new document released on 9^th June 2022, the trade association has highlighted the significant investment that is required for meeting the decarbonisation targets of the United Kingdom and building out the renewable energy infrastructure. The energy industry has been planning to invest more than 100 billion dollars over the course of the decade in the new sources of energy.

According to the company, with the domestic wind and solar energy considerably cheap and more secure than relying on the international gas and it is transitioning them in decreasing the energy bills. The cost of all these technologies has been decreased in part because of the stable and long-term policies and investment in the innovation through the whole supply chain.

A windfall tax of the generators like the government and is currently considering, it is going to risk slowing and ultimately increasing and the investment costs for some of the major developers.

Adam Berman, deputy director of Energy UK said, the upcoming decade is going to be critical is ensuring the sufficient investment for reaching both their climate change and the domestic energy security targets and the generation of energy has been a long-term industry along with the investment horizons that is spanning decades.