Two of the UK's energy trade organisations have cautioned that, despite their ambitious clean energy objectives, the country may fall short of what is needed in terms of investments compared to the US and EU.
In advance of the Spring Budget to be released by the Chancellor next month, Energy UK and Renewable UK have issued two individual reports asking the government to introduce measures and changes in regulations that will attract essential private investment in renewables. The documents can be viewed on the Renewable UK website.
Energy UK's report reveals that investment into low-carbon electricity generation has taken a considerable dip in recent times. This is largely due to inflation, higher interest rates, supply chain issues, policy vagueness and windfall taxes that promote oil and gas extraction more than other forms of energy.
The organisation dealing with trade has predicted that by the year 2050, an extra £500 billion would be necessary for the UK to meet its Net Zero objectives. But it believes that if the government does not take action, then by 2030, £62 billion will be lost in investments. This could lead to a deficit of 54GW of potential solar and wind power capacity - which is enough to provide electricity to all of the households in the UK.
According to Emma Pinchbeck, CEO of Energy UK, the UK is in danger of inhibiting its own objectives and not fulfilling its promises. She further stated that the nation had been a pioneer in the move towards clean energy, exemplified by the pioneering offshore wind industry, but that this momentum could be lost if investments were to be directed elsewhere.
Ana Musat, Executive Director of Policy at Renewable UK, noted the intense international battle for investment, talent, and supply chains. She pointed out that "the United States and the European Union are fighting to come up with the most attractive incentives to attract investors in clean energy."
The two commercial associations are demanding that certain steps be taken, such as the installment of more enticing regulations, accelerated project preparation, more eco-friendly renewable energy costs, and fresh fiscal policies like the alteration of the windfall tax and its corresponding tax exemptions.
Pinchbeck pointed out that we are in a significant moment with other countries vying to draw in the same firms and financiers, and it would be inexcusably negligent to assume that we don't need to do the same. He declared that this is a scarce opportunity and if we fail to take advantage of it soon, we will not just miss out on more affordable and cleaner energy, but also on the considerable economic gain that such investment would bring, including expansion, jobs, and a range of other advantages.