Industry calls on government to ensure UK’s global leadership in renewables

Ahead of the Budget on 15 March, the government is being urged to take seven key steps to ensure that the UK is not overtaken by global competitors in the face of intense competition to attract investment for renewable energy projects.

The recommendations are made in a report called “Retaining the UK’s leadership in renewables” by RenewableUK, an industry body representing more than 400 companies working in green energy.

It warns that the EU and USA are currently providing more attractive policy and regulatory environments for companies and investors.

For example, it says, that the the US Government is providing tax credits to supply chain companies to manufacture components for wind farms which are worth $120 million for every new gigawatt of wind farm capacity.

RenewableUK calls on the UK government to set a more sustainable price for renewable electricity in this year’s upcoming auction for clean power, taking account of inflation which has significantly increased the cost of labour and raw materials.

Other recommendations include speeding up the planning process to build offshore windfarms, which can currently take five years; reforming the planning framework, which is an effective ban on new onshore windfarms and speeding up investment in new grid capacity.

RenewableUK’s Executive Director of Policy Ana Musat said: “We’re urging the Chancellor to look carefully at the recommendations set out in this report ahead of his Spring Budget, as 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. A combination of fiscal measures and smart regulation will create a business environment which can boost Britain’s energy security, reduce consumers bills and tackle climate change at scale, enabling us to reach our net zero goal as fast as possible”.

Read the full report from RenewableUK.