MPs are set to review the government’s plans for Britain’s energy sector after a string of major projects were abandoned by international companies.
The Business, Energy, and Industrial Strategy Committee said it would look into the government’s plans to see if they are fit for purpose.
It will examine if the country needs a new approach to speed up investment into low-carbon, low-cost energy and secure supplies in the long term.
The decision comes after Japanese firms Hitachi and Toshiba pulled out of the Wylfa and Moorside nuclear projects, dealing a serious blow to the government’s plans.
The committee also said it will investigate concerns over foreign investors in British nuclear. This comes amid worries about Chinese involvement in major projects.
Committee chair Rachel Reeves said: “In the wake of investment decisions over nuclear plants at sites such as Moorside and Wylfa, a giant hole has developed in UK energy policy. With coal due to go off-line, and the prospects for nuclear looking unclear, the government needs to set out how it will create the right framework to encourage the investment needed to plug the gap.
“In this inquiry, we want to examine the government’s approach to creating the right conditions for investment to deliver the secure energy capacity to meet the nation’s needs. A bigger shift in our energy infrastructure to a low cost, low carbon energy system is necessary.
“As a committee, we will want to consider what more the government needs to do to attract greater investment into financing future energy capacity, including renewables.”