UK government's green energy plans under pressure
Prominent UK power operator Drax has confirmed that unless the UK government changes the goal post with regards to biomass energy it may well have to move its £2 billion plans for green energy plants overseas. This is a bitter blow for the UK government which has used the green issue to grab the attention of voters and attempt to push the UK to the top of the green energy. So what is going wrong?
It would appear that a lack of tax incentives from the UK government regarding the building of such biomass fuel plants is behind the announcement from Drax today. If you compare coal energy to biomass energy it quickly becomes evident that coal energy is by far and away cheaper although it does cause significant damage to the environment. If the UK government is serious about pushing through new green energy plans for the UK it is likely to be forced into some kind of tax related incentive scheme which could potentially save the three biomass energy plants which Drax had pencilled in for the UK.
The loss of a £2 billion green energy initiative would be a disaster for the UK government, the environment and potentially cause longer term issues for the UK energy sector.
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