Shell urges Government to support renewable energy

Shell has warned the Government that new tax and planning policies must be put in place if the country is to make the transition towards renewable energy.

In its submission to the Department of Trade and Industry's Energy Review, Shell threw its weight behind a target suggested by the Government's think-tank, the Performance and Innovation Unit, that renewable sources should provide 20 per cent of our energy needs by 2020.

Shell said wind was the most promising source of such energy for the UK, given Britain's weather. However, getting planning permission for wind farms was a major constraint.

Clive Mather, Shell's UK chairman, told The Independent that the other major obstacle was the poor economics of wind power. He said fiscal incentives were needed to get the technology established.

"The return on wind turbines is nothing like good enough. It requires external assistance. We are committed to play our part but it needs the right stimulation. We are all investing [in wind] without any sort of subsidy," he said.

On Friday, the deadline passed for the consultation process that will feed into a White Paper from the DTI due early next year, which will plan the country's long-term energy needs, out to 2050.

Shell said it was "concerned" that the PIU's report, published in February, stated that, where environmental objectives conflict with other aims, the environment should take preference.

"We believe that security of supply is as important as environmental objectives and these objectives should be balanced within the context of sustainable development," the energy giant said.