A green thinktank claims renewables investment could fall 95% over next three years, however manufacturing sector could make £2.5bn clean energy investment by 2025.
The Green Alliance, has suggested that UK investment in renewable energy could fall off a ‘cliff edge’ over the next three years.
Investment down by £1bn
Over £1bn of future renewable energy investments was found to be lost during 2016, despite government commitments to cut greenhouse gas emissions by 57% by 2030. So far no detail on how this is to be achieved.
The downbeat outlook is largely put down to recent cutbacks in subsidy support for renewable energy technology such as onshore wind, solar PV and biomass. There is also the lack of firm commitments from the government on renewable energy support through support auctions post 2020 under the levy control framework.
Efficient manufacturing to cut consumption
Barclays Bank’s ‘Powering On’ report suggests that manufacturing sector investment in clean technology and energy efficiency could cut energy consumption by nearly a third. It could also lead to a £2.56bn increase in economic output by 2025, according to the report.
Barclay’s head of manufacturing transport and logistics, Mike Rigby said: “Energy resilience and costs are vital considerations for UK manufacturers and are a critical element of our manufacturing sector’s ability to compete internationally.
“In recent months, attention has focused on the future of energy supply but we need to look at all aspects of energy. By considering energy management on the demand side in intensive sectors such as manufacturing, we can ensure the UK remains competitive.”
Government low-carbon commitment
A government spokesman said: “We are fully committed to a low-carbon future and the Office for Budget Responsibility recently projected that £8.4bn will be spent on renewable projects in the UK in 2020/21.
“We are one of the best countries in the world at tackling climate change with £52bn invested in renewable projects in the UK since 2010. Last November we reaffirmed our commitment to spend £730m of annual support on renewable electricity projects over this parliament.”