The Committee on Climate Change (CCC) has written to Ed Davey, the Energy Secretary, to warn that “required investment is at risk under current proposals”.
Proposed reductions in subsidy levels for offshore wind farms this decade are too severe for the cost reductions that the industry can achieve, it warns.
Ministers also appear to have dramatically scaled back their ambitions for how much offshore wind is wanted in the long-term, undermining confidence in the sector.
This creates a vicious circle whereby developers are reluctant to make the investments that would be needed to reduce costs, the CCC warns.
David Kennedy, chief executive of the CCC, said: “I have spoken to every major investor and they are all concerned.”