The Association for Renewable Energy and Clean Technology (REA) has published its annual review of the energy industry indicating “significant challenges” are delaying the rollout of low-carbon technologies.
In particular, the REA signalled that the UK government must address policy gaps to scale the rollout of renewables. This has become a topical debate in the energy sector following Rishi Sunak’s recent flurry of delays to decarbonisation targets.
The REview23 report highlights that although the progress being made by the UK renewable industry is “positive”, supportive government policy measures must be forthcoming for heat, transport and circular bioresources otherwise it will “continually be a challenge for the UK to meet its legally binding net zero commitments”.
Another key takeaway from the report is the economic benefits that the energy transition could provide the UK, something that has been well documented by various organisations in previous months. For instance, Energy UK recently revealed that an ambitious net zero could add £240 billion to the economy.
On this, the REA indicates that the market value of the sector could double from £23 billion to £46 billion by 2035. This could see renewable energy and clean technology jobs increase to 210,000 by the same year, including the addition of projected energy storage and flexibility services.
“The urgent need to unlock policy and investment blockages is clear throughout REview23, which shows that in 2022, only 14% of the UK’s total energy consumption came from renewable sources across heat, transport and power according to government statistics (DUKES, 2023),” said Dr Nina Skorupska CBE, chief executive of the REA.
“While we continued to see the dynamic resilience of the renewable energy and clean technology sector over 2022 through the energy crisis, as well as months of political and policy uncertainty, we are not immune to real world economic forces. Indeed, at times it can feel as if we are wading through treacle when repeatedly being challenged to make the economic case for net zero.
“Even though it has been proven countless times that the energy transition is as much an economic opportunity as an environmental imperative, our sector still finds itself having to overcome naysayers time and time again.
“REview23 projects that thousands of new jobs and billions of pounds will be added by the sector by 2035, and these figures could be even greater should the government deliver the right support. Of course, these numbers are by no means guaranteed if the government continues to provide patchy and unreliable policy.”
Skorupska added: “We are clear, tackling climate change and boosting our economy is not an ‘either-or’ decision. In fact, it goes hand in hand. I would urge the government to recognise the opportunities on offer for our country and finally match their warm words with action.”
