BDC

Renewable Energy Growth Under Threat

The latest report from the Renewable Energy Association has claimed that the record growth seen in the renewable energy sector has been threatened by ‘turbulent’ policy changes.

Although last year saw record high growth rates and employment levels, the report states that the renewable energy sector in the UK is to suffer from repeated policy interventions.

The REA’s REView 2016 report, which was released earlier in the week, says that these interventions have ‘blind sided’ the industry.

The data reveals that the impressive rates of growth in the renewable energy sector, which increased in value by 4% more than any other sector of the UK economy in 2015, is set to slow down over the next few years due to ‘severe and sudden’ changes in policy by the Government.

The statistics gathered by the REA show that the sector’s total market value last year reached over £15.9 billion, which is an increase of almost £1 billion (£982 million) and a 6.6% growth rate.

While the rest of the economy grew by only 2.5%, the renewables sector was able to add 4,760 jobs in the same space of time, which raised total employment numbers to 116,788.

However, even though renewable energy sources accounted for 22.3% of power in the UK last year, the lack of movement in transport and heat generation, along with political uncertainty, has resulted in a ‘turbulent’ future being painted for the industry.

Nina Skorupska, Chief Executive of the REA, said that 2015 saw another record breaking year for the renewable energy sector in Britain and once again saw the industry outperforms growth rates of the UK.

However, she continued by saying that many business have been left reeling by the severe policy changes and deployment has started to slow down.

Despite this, Ms Skorupska said that things will continue to grow as the industry will innovate and preserve.

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BDC 301 February 2023