Although the UNITED KINGDOM To set ambitious clean energy targets, it risks falling behind the United States and the EU in attracting needed investment, two of the country’s energy trade organizations have warned.
Ahead of the Chancellor’s Spring Budget next month, Energy UK And Renewable UK published two reportscalling on the government to implement measures and rule changes that will allow the UK to attract vital private investment in renewable energies.
“The renewable energy sector is facing a perfect storm this year.
According to Energy UK reportinvestment in low-carbon electricity generation “has deteriorated significantly” in recent months, due to soaring inflation, rising interest rates, the difficulties of the supply chain, political uncertainty and “poor design” exceptional taxes which currently “promote the extraction of oil and gas”.
The trade organization estimates that an additional £500bn investment would be needed by 2050 to meet the UK’s Net Zero targets. But without government action, he expects an investment loss of £62billion by 2030. That would translate to a 54GW shortfall in potential wind and solar capacity, enough electricity to power every household in the UK.
“The UK is increasingly at risk of undermining its own ambitions and failing to deliver on its commitments,” said Emma Pinchbeck, CEO of Energy UK, said. “In many ways the UK has led the way in the clean energy transition – as evidenced by our world-leading offshore wind industry – but we risk spoiling that position and driving the investments we need elsewhere.”
The fierce global competition for investment, skills and supply chains was also cited by Renewable UK’s executive policy director, Ana Musat, who Underline that “the United States and the EU are in a race to offer incentives to clean energy investors”.
The two business organizations call for measures such as the implementation of more attractive regulations, faster project planning, more sustainable renewable electricity prices and new policies of fiscal measures such as the reform of the tax on windfall profits and respective tax breaks.
“We are currently at a tipping point with other countries actively trying to attract the same companies and investors and it would be unforgivable to think that we don’t need to do the same,” Pinchbeck noted. “This is a once-in-a-generation opportunity and if we don’t seize it now, we will not only miss out on cheaper, cleaner energy, but also the huge boost this investment will bring to our economy by terms of growth, jobs and other benefits.