Energy UK has published a report which looks at how the UK can attract the investment needed to maintain its role in clean energy, and ensure a secure, homegrown energy supply in future.
Accelerating Action, the final report in the trade group’s Clean Growth Gap series, looks at different measures the UK can take to ensure it doesn’t lose out to other countries on the economic opportunities available.
Energy UK said the report is timely after recent events like the Prime Minister’s speech on net zero and the last Contracts for Difference (CfD) auction results.
With an estimated 70% of the funding required for the net zero transformation likely to come from the private sector, the report highlights seven actions the UK should take to attract this investment.
It advises to change investment incentives in the tax system so they match the specific characteristics and requirements of low-carbon projects.
It also recommends amending the current Electricity Generation Levy to address the disadvantage clean energy projects receive in comparison to oil and gas and the barrier it provides to new projects.
The report also wants the government to ensure the CfD scheme reflects economic realities to avoid any repeat of the last auction round.
The importance of a stable and predictable environment for investors and how proposed reforms, indecision and ill-advised rhetoric can adversely affect this, also needs to be better understood, said Energy UK.
It also wants to see the grid connections process to be accelerated so that new projects can come online quicker.
Energy UK’s chief executive Emma Pinchbeck (pictured) said: “Much of the focus in the past week has been on how the cost of net zero and the energy transition might affect individuals and households, but in reality, most of the investment needed will come from the private sector with the benefits flowing straight to people across the UK.
“Sadly the messaging from last week will have left many investors questioning whether the UK has either the commitment or the belief to deliver on this.
“We have a vital choice to make on our future here and – as these reports have shown – the right decision is to seize the opportunity and make it the focus of our efforts to deliver economic growth, high-quality jobs and greater prosperity over the coming years and decades.”
Previous reports in the series, produced in partnership with Oxford Economics, have highlighted how, after leading the way by making the most of its existing strengths and natural advantages, the growing global competition for clean investment has increased the risk of the UK falling behind with its own energy transition.