With conventional energy prices going up and low carbon energy costs falling rapidly we look forward to the day when a wide range of renewable and low carbon energy solutions are available to compete with fossil fuels. However for the time being Government backed financial incentives are crucial to the success of many business plans, whilst new innovations will continue to require support if they are to blossom.
The team at Ecuity have substantial experience of financial incentive schemes within the UK and abroad. We’ve helped shape and design many of the schemes in place today, including the Renewable Heat Incentive and the Feed in Tariff. We’ve also worked on incentives for low carbon transport, large-scale electricity generation and of course Treasury policy instruments such as the Carbon Reduction Commitment. Our experience means we can help you to understand the regulatory framework and the incentive schemes on which you and your investors will rely.
In an ideal world your sustainable energy proposition would be perfectly competitive without subsidies. After all, who would willingly place the success or failure of their business in the hands of many of today’s elected politicians, the vagaries of elections and of course a multitude of other issues outside of any control or influence. The Ecuity team can work with you to highlight the risks and opportunities arising from the incentive framework. Using our economic and financial modelling capability, we’ve developed models for individual installations, technology groups and even entire scheme budgets –all of which can be deployed to assist you in the commercial strategy development process.
Financial incentives are one of the most highly controversial and hotly debated issues within the sustainable energy space. Get it wrong and Government’s are accused of wasting tax-payer money whilst industry can be tarred as mercenary. Get it right and calls soon come from those disenfranchised, or concerned about budgets. Ecuity works with its clients to help them engage stakeholders on the issue of financial incentives. Our focus is on ensuring that those we work with put forward arguments based on sound analysis rather than rhetoric. We also advocate pro-active early engagement as this is the optimum time to discuss such a sensitive issue with policymakers.
“We’ve added more capacity for renewables in the last two years than at any time in the last decade. This deliberate investment in renewable energy isn’t just good for our environment. It’s good for our business too.” David Cameron at the Clean Energy Ministerial, London, 26th April 2012