Renewable UK and Energy UK, two of the country’s energy trade bodies have separately warned that the country is at risk of falling behind in the race to become a global renewable energy leader except it changes the rule and have called on the government to make the country a more attractive place for investors looking to build wind and solar farms.
“The renewable energy sector is facing a perfect storm this year, with inflation squeezing out already tight profit margins, and fierce international competition for investment, skills and supply chains. The US and the EU are in a race to offer incentives to clean energy investors, and the UK cannot take its leadership position for granted,” Ana Musa, Renewable UK policy boss was quoted as saying.
Read also: Trade bodies say the UK risks falling behind in renewables race
Renewable UK wants the Government to put in place “its share” of fiscal incentives for both developers and companies in the supply chain in order to compete globally as the country awaits the Chancellor’s budget next month as leaving things as they currently are means companies will not bid as much as the Government wants in the next auction for solar and wind farms in the summer.
Energy UK, which also represents non-Renewable energy companies, in echoing Renewable UK’s call to the government said that the UK could miss out on £62 billion in investment before the end of the decade, adding that the current windfall taxes on energy companies are “poorly designed” and favour oil and gas producers.
Both also said that recent problems have pushed up costs for developers.
“The UK is in increasing danger of undermining its own ambitions and failing to deliver on its commitments.
“In many ways, the UK has led the way in the transition to clean energy – witness our world leading offshore wind industry – but we risk squandering this position and driving the investment that we need elsewhere,” Energy UK’s chief executive Emma Pinchbeck was quoted as saying.
However, a Government spokesperson has said the Government has consistently attracted investment in renewables, adding that the country has seen more than a 500% increase in the amount of renewable electricity capacity connected to the grid and has through Contracts for Difference awarded contracts totalling almost 27GW of new low carbon since 2010.
Story was adapted from the Independent
