The removal of the climate change levy exemption has shocked the renewable sector when there are lasting questions about Hinkley Point’s expansion
In the world of renewable energy, they are still reeling from the budget shocker – the removal of the climate change levy exemption, a source of revenue that had seemed secure for at least another half-decade.
To see the value of these exception certificates, look at the effect on the share price of Drax, which qualified by virtue of converting two of its six units to burn biomass rather than coal: down 28% on the day, followed by a rebound of only 7% on Thursday. The company calculates that the change will cost it £60m next year, prompting analysts to cut their profit forecasts by about a quarter.
Related: Green energy sector attacks chancellor’s changes to climate change levy