The Confederation of British Industry has called for a change in the direction of UK energy policy warning of over-incentivizing investments in wind power, which it claims will result in too little investment in other forms of low-carbon energy, such as nuclear and clean coal.
The Confederation of British Industry (CBI) has cautioned that the current approach is making energy security harder to achieve and is jeopardizing the UK's ability to meet climate change targets.
In its new report called Decision Time, the CBI has requested the government to pursue policies that will deliver a more balanced energy mix that includes wind and other renewables, nuclear, gas, and clean coal. This will bolster energy security and help reduce carbon emissions more cost-effectively in tougher economic times, the lobby group said.
The CBI has suggested reducing the percentage of wind power expected by 2020 under the Renewables Strategy, due in July 2009, to encourage investment in other low-carbon energy sources, as part of its other suggestions to the British government.
John Cridland, CBI's deputy-director general, said: "Large chunks of our energy infrastructure urgently need replacing, and we have tough climate change targets to meet. However, the government's disjointed approach is deterring the private sector investment needed to get our energy system up to scratch, bolster security and cut emissions.
"While we have generous subsidies for wind power, we urgently need the national planning statements needed to build new nuclear plants. If we carry on like this we will end up putting too many of our energy eggs in one basket. But by moving government policy in a different direction we can achieve a good balance of wind, nuclear, gas and clean coal. With firms putting the finishing touches to their future investment plans, we need to act now if we are to achieve an energy system that is low-carbon, secure and sustainable."
