The UK is poised to capitalize on its leadership in wind power, offering global green investors a range of incentives to establish manufacturing plants and supply chains, as the government seeks to move towards low-carbon electricity by 2030.
The UK is set to woo global green investors with a range of incentives, including cash and infrastructure improvements, in a bid to attract companies looking to establish manufacturing plants and supply chains.
This move comes as the government seeks to capitalize on its position as a leader in wind power, with projects like Gwynt y Môr, the world’s second-largest offshore windfarm.
Wind farms are large-scale installations of wind turbines that convert wind kinetic energy into electricity.
These renewable energy sources have become increasingly popular worldwide, with over 700 GW of installed capacity globally.
Wind farms can be onshore or offshore and vary in size from a few megawatts to several hundred megawatts.
They reduce greenhouse gas emissions and dependence on fossil fuels, making them an attractive alternative for power generation.
UK Offers Attractive Market for International Investors
Ed Miliband, the energy secretary, has written to dozens of global investors, citing the UK’s industrial strategy and commitment to moving to low-carbon electricity by 2030. The government is offering £300m for offshore windfarms, an area in which the UK retains a lead.
The UK offers a range of investment opportunities, including stocks and shares, bonds, and property.
The Financial Conduct Authority (FCA) regulates the financial services industry in the UK, ensuring that investments are transparent and secure.
Investors can choose from various tax-efficient options, such as Individual Savings Accounts (ISAs) and Self-Invested Personal Pensions (SIPPs).
According to a report by the Investment Association, the UK's pension fund assets reached £1.5 trillion in 2020.
The UK's investment market is also influenced by its membership in the European Union, with implications for cross-border investments.
This move is designed to attract clean energy investment and ensure the UK can be a winner in the global race for the clean industries of the future.
Global Uncertainty Favors the UK
Renewable industry insiders say many companies have been spooked by the actions of Donald Trump, who has declared his scorn for wind and solar energy. This has led to some investors reconsidering their US plans for fear of losing money.
The UK’s decision to host a 60-country summit in London this week aims to capitalize on this uncertainty.
Stable Market for International Investors
Ajai Ahluwalia, the head of supply chain at RenewableUK, notes that US companies are already interested in investing in the UK’s rapidly expanding clean energy sector. The global uncertainty caused by President Trump‘s ever-changing policies and opposition to clean energy has created an even greater opportunity for the UK to provide a stable and attractive market for international investors.
Labour Pledges to Support Clean Energy
Labour has pledged £8.3bn to Great British Energy, a nationally owned company that will co-invest in clean energy projects with the private sector. However, this pledge has been called into question as the chancellor, Rachel Reeves, takes an axe to spending.
Changes to Planning System Raise Concerns
Wildlife campaigners have raised concerns over changes to the planning system designed to streamline new energy and other developments. The government’s amendment to its planning and infrastructure bill would mean less consultation at the pre-application stage for ‘nationally significant infrastructure projects.’ Matt Browne, the head of public affairs at the Wildlife Trusts, has described this move as a ‘misstep’ and called for reconsideration.
Domestic Energy Agenda Needs More Focus
Campaigners also called for more focus on the UK’s domestic energy agenda. Mike Childs, the head of science, policy and research at Friends of the Earth, noted that much more effort was needed to insulate draughty homes and build renewables. The country has been held hostage by the yo-yo-ing price of dirty fossil fuels for far too long.
Electricity Costs to Fall with Severed Reliance on Gas
Rob Gross, a director at the UK energy research centre, said that the UK’s electricity costs would begin to fall once it had severed its reliance on gas power plants. These generate the most expensive electricity on the grid and set the overall market price.
The cost of energy in the UK has been increasing steadily over the past decade, driven by factors such as rising demand for electricity and gas, limited supply, and government policies.
According to Ofgem, the UK's energy regulator, the average annual household energy bill rose from £1,140 in 2013 to £1,378 in 2020.
This increase is attributed to higher wholesale prices, which account for approximately 50% of a typical household's energy bill.
To mitigate these costs, households can consider switching energy suppliers, improving energy efficiency through insulation and renewable technologies, or adopting flexible tariffs.
- theguardian.com | UK seeks global green investors with windfarm cash and planning policies
