The World Wide Fund for Nature (WWF-UK) has warned that the Crown Estates are prioritising oil and gas exploration to the detriment of renewable energy development which is undermining Britains position as a leader in offshore wind energy.
Highlighting a little known clause contained within Crown Estate leases, the WWF claims that the Estates "can terminate existing rights granted to offshore wind farm operators whenever the government declares a license for oil and gas exploration in the same area. And further, that not only can wind farm operators lose their lease, but they face premature decommissioning costs when their lease is revoked and are not entitled to any compensation to recover any expected financial returns."
As a result, the uncertainty over the financial viability of these leases could potentially detract investors, with knock on effects for the renewables industry and the future growth of the green economy.
Nick Molho, Head of Energy Policy at WWF-UK said “For decades, the oil and gas industry has benefited from a very favourable environment with tax breaks, which are still being granted today, and more recently with an exemption from the licensing requirements of the Marine and Coastal Access Act 2009.
The Government really needs to shift the focus of its energy policy away from oil and gas and instead unambiguously support the renewable energy industry, which is the industry of the future.”
Changes in legislation
The WWF is now calling for new legislation in the Energy Bill that will provide certainty for investors that renewable energy projects in the UK will at the very least be able to operate on a level playing field.
And further, that where a conflict arises between offshore renewable development and oil and gas exploration, priority should be given to renewable energy projects.
Nick Molho adds, “The new Government has a great opportunity to improve the investment climate for renewable energy in the forthcoming Energy Bill. The renewables industry clearly offers the greatest long term employment, environmental and energy security potential for the UK.”