Uncertainty around UK’s green energy policy deters investors
THE UK’S renewable energy market has become less attractive to investors worldwide due to political uncertainty and cancelled projects, according to a new report released by EY today.
The UK has now slipped into fifth place in the rankings, falling behind Japan, according to quarterly statistics from the accountancy firm.
“The UK’s fading appeal is the direct result of the lack of clarity on the government’s long-term energy strategy at a time when energy security is a concern and investors are looking for commitment,” said Ben Warren, EY’s environmental finance leader.
“Recent announcements around contracts for difference have been perceived by some investors as a risk to investment stability, for onshore wind in particular, given the regime changes and subsidy cuts already planned. At the same time, the UK offshore sector has also taken a battering, with a number of high-profile projects being mothballed in recent months.”
Labour’s shadow energy minister Julie Elliott said the news is “yet another worrying setback for clean energy in the UK”.
The UK has pledged to deliver 15 per cent of its energy consumption from renewable sources by 2020.