British energy policy has lost its way and investors are confused by the government’s plans for power generation, the head of Scottish Power has claimed. Keith Anderson, chief corporate officer, said that a new long-term plan was needed for companies to invest in developing industries. The government was “the central buyer of generation” because ministers were setting the budgets and rules for subsidy schemes to support new power capacity, he said. These included a scheme for offshore wind farms, an individual contract for the new nuclear plant at Hinkley Point and a separate scheme, the capacity market, for other types of generation, including conventional gas-fired power plants. Scottish Power unsuccessfully sought subsidies to develop big new gas-fired power stations, known as CCGTs, through the capacity market. The scheme has instead primarily encouraged smaller, cheaper gas and diesel engines. Ministers have said that they are happy with the outcome of the scheme.
Times 30th March 2017 read more »