A new report by the Energy Transition Readiness Index (ETRI) assessing 13 European countries, has deemed that the UK is “lagging behind” the rest of Europe.
Produced by the Association for Renewable Energy and Clean Technology (REA), the study indicated that despite the ambitious long-term targets the UK has set itself to become a renewable energy superpower, the priorities of the policies currently in place suggest a more short-term focus. This creates an increase in investment uncertainty which, according to the survey, leaves the UK as “one of the worst European performers with regards to energy transition readiness”.
Unfavourable flexibility markets were highlighted by the report as a significant barrier to the deployment of renewable energy in the UK, alongside grid access delays and energy transition governance and regulation.
A recent UK industry study suggested that increasing demand-side flexibility resources could result in savings of £600 a year per customer in 2050.
A number of demand-side flexibility projects have gone live in the UK this year including the National Grid ESO’s Demand Flexibility Service, which announced its first test period this week. Utilita also launched their ‘Power Payback’ month-long trail that will offer customers energy credits for reducing or avoiding energy consumption at peak times.
Responding to ETRI 2022 Dr Nina Skorupska CBE, REA’s CEO commented: “the warm rhetoric from the Government, the UK is lagging behind many other countries in preparing for the energy transition – if this was a league table, the UK would be in the relegation zone.”
“I don’t underestimate the challenge ahead of us, but the cost of the Government moving too slowly on preparing for the energy transition is simply too great. Our country is in the midst of a severe energy crisis, but the Government will store up even greater problems for the future if they don’t act now.”
The ETRI 2022 has ultimately called for all European countries to address future flexibility needs and current investment barriers. REA warned that if flexibility market reforms are not prioritised the long-term financial impact will be “severe.”