Social investment being hampered by subsidies?

A surge in socially responsible investment in renewable energy could be on the horizon, but one expert believes the success of the industry is being hampered by government subsidies.

Dr John Constable, director of policy and research at the Renewable Energy Foundation, was speaking in the wake of the announcement that green energy provider Ecotricity had received planning permission for a series of sun parks, which generate power via photovoltaic (PV) panels.

He welcomed the development, but warned the industry is currently subsidised at the expense of electricity consumers.

Dr Constable argued these allowances actually hamper development and must be abolished if the sector is to flourish.

"We will only be on the verge of a renewable boom when government can withdraw subsidies because the industry is fundamentally economic," he added.

A Public Accounts Committee report recently claimed the Department for Energy and Climate Change will not meet its 2010 target of sourcing one tenth of electricity from renewable sources. ADNFCR-2318-ID-800267842-ADNFCR