“Push Me, Pull You!” Subsidies, Taxes, and Storage
It is difficult to understand the logic behind Britain’s policy toward renewable energy. To meet its plans for a low-carbon economy it has been estimated that Britain requires £1.4 trillion of investment to fund its transition to net zero by 2050 , but in the recent budget, the government has announced plans to tax excess profits at a rate of 45% of some renewable energy companies who have been the recipients of past public support to induce investment to raise generating capacity. According to the statement by Jeremy Hunt justifying the decision: “The structure of our energy markets creates windfall profits for low-carbon electricity generation. “