Delays in delivering a stable energy framework for the UK is holding back investment in renewables.
Ernst & Young has warned that mixed messages on energy policy from the government could see the UK miss out on an opportunity to become a “safe harbor” for renewable energy investment in Europe.
Although the UK is now fifth in the business service company’s latest renewable energy country attractiveness index, Ben Warren, environmental finance leader at Ernst & Young, said: “Competing visions and strategies within the government about the country’s future energy mix, pose serious questions among investors about whether we can compete for capital on a global level.”
According to Warren, with investment wavering in other parts of the EU there has never been a better time for the UK to position itself as the number one European destination for investment in renewable energy. "The foundations arre there, reflected in the UK's consistent performance in the index and its current fifth place ranking, as well as its huge offshore wind potential."
Publication of the new index follows an announcement by the energy and climate secretary that the UK would not support plans by the European Commission to set new renewable energy target for the bloc. The existing target is a 20% share of energy from renewable sources by 2020, and is credited with stimulating investment in low-carbon generation across Europe. The commission is proposing to raise this to 30% by 2030.
