EEF calls for scrapping of renewables scheme

The government scheme which guarantees a market for renewable energy such as wind power should be scrapped from 2015 and replaced with a "zero carbon obligation" to pave the way for a new generation of nuclear power stations, a report urges today.

The manufacturers organisation, the EEF, says ministers must back a replacement nuclear programme as part of a balanced and sustainable long-term energy policy for the UK.

But it also cautions the Government against putting "all its eggs in a small number of baskets", saying other options should be kept open to help Britain meet its emissions targets, such as clean coal and capturing the carbon from gas-fired power stations.

At present, developers of renewable energy projects such as wind or wave farms are guaranteed a market for their power through the "renewables obligation", which requires electricity suppliers to take a fixed proportion of their requirements from green sources or buy certificates from other suppliers to cover any shortfall. The scheme is set to run until 2015, when the target is for 15 per cent of Britain's electricity to come from renewable sources.