Although the Great Britain has Having set ambitious clean energy targets, it risks falling behind the US and EU in attracting the investment it needs, two of the country’s energy trade organizations have warned.
Ahead of next month’s Chancellor’s Spring Budget, Energy UK and Renewable UK have released two separate reports calling on the government to implement policies and rule changes that will allow the UK to attract important private investment in renewable energy.
“The renewable energy sector is facing a perfect storm this year.
According to Energy UK’s report, investment in low-carbon power generation has “deteriorated significantly” in recent months, driven by rising inflation, rising interest rates, supply chain difficulties, political uncertainty and “ill-conceived” windfall taxes currently ” cheap” are oil and gas production.”
The trade organization estimates that £500 billion in additional investment would be needed by 2050 to reach the UK’s net zero targets. But without government action, it expects an investment loss of £62 billion by 2030. That would equate to a deficit of 54GW in potential wind and solar capacity – enough electricity to power every home in the UK.
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“Britain is increasingly at risk of undermining its own ambitions and failing to deliver on its commitments,” said Emma Pinchbeck, CEO of Energy UK. “The UK has been at the forefront of the clean energy transition in many ways – look at our world-leading offshore wind industry – but we risk squandering that position and driving the investment we need elsewhere.”
Fierce global competition for investment, skills and supply chains was also spearheaded by Renewable UK Executive Director of Policy Ana Musat, who stressed that “the US and EU are in a race to incentivize clean energy investors”.
Both industry organizations are calling for measures such as the implementation of more attractive regulations, faster project planning, more sustainable electricity prices for renewable energies and new tax measures such as windfall tax reform and corresponding tax relief.
“We’re at a crucial juncture right now, as other countries are actively trying to attract the same companies and investors, and it would be unforgivably complacent to think we don’t have to do the same,” Pinchbeck noted. “This is a once-in-a-lifetime opportunity and if we don’t seize it now, we will not only miss out on cheaper, cleaner energy, but also the tremendous boost to our economy that such investment will bring in terms of growth. Jobs and other benefits.”