Posted: 30 April, 2014. Written by REA News
REA, Innovas and PwC team up to produce industry-leading market report
The renewable energy industry has attracted almost £30 billion of private sector investment since 2010. This investment has enabled the industry to sustain over 100,000 jobs in 2013 and deliver 4.2% of UK energy. These are the findings of a new report published today by the REA: REview – Renewable Energy View: 2014 .
REview features analysis on:
REview builds on the REA’s 2012 report Renewable Energy: Made in Britain, the first industry-wide analysis of employment in the UK renewable energy industry. REview, the most complete assessment to date of the UK renewable energy market, will be formally launched this evening by Energy Minister Greg Barker in the House of Commons.
REA Chief Executive Dr Nina Skorupska said:
“This report highlights the close relationship between clear, stable policies and sustained growth and jobs in the renewable energy industry. The Government’s renewable electricity policies have incentivised nearly £28 billion of private investment since 2010, achieving annual growth rates of over 20%. The world’s first Renewable Heat Incentive is also beginning to spur positive growth in green heating. This is a tremendous success story.
“This positive message also comes with a warning. Drastic Feed-in Tariff cuts in 2011/12 led to widespread job losses in the solar industry, and the continued policy uncertainty for renewable transport has seen employment and investment opportunities in UK refineries go begging.
“Clear, stable policies create the investment, jobs and growth in renewables that the UK needs. We urge the Government to learn the lessons from past experiences, such as solar FITs and biofuels uncertainty, and engage closely with industry to resolve outstanding uncertainties, such as State Aid rules and the details of CfDs.”
Deployment: renewable energy is keeping lights on, homes warm and cars moving
Analysis by the REA reveals that:
Employment: jobs down since 2011 due to policy changes, but new job growth expected
Analysis by Innovas reveals that:
John Sharp, Director of Innovas, said:
“The renewable energy sector continues to grow steadily, which is particularly welcome at a time when there have been many challenges to the UK economy and when energy security issues are coming to the fore again. None of this growth should be taken for granted as the recent changes in the levels of support for the solar PV sector have shown.
“What is encouraging is that much of the growth is being felt in the UK regions outside of the South East, anchoring jobs in regions and rural areas where good quality long term employment prospects in the renewable energy sector are contributing to improvements in the economic, social and community wellbeing of these areas.”
Investment: supportive policy framework makes the UK an attractive destination for investment
Analysis by PwC reveals that:
Ronan O’Regan, Head of Renewable Energy at PwC, said:
“Our analysis highlights the mixed fortunes for investors in different forms of renewable energy. With recent historical investment dominated by renewable electricity, investment in renewable heat has been modest in comparison and this market requires a rapid scale up in investment levels if we are to achieve our overall 2020 renewable energy targets.
“In the renewable electricity market, while offshore wind continues to be the most invested in technology, the rise of the UK solar market from nowhere in 2010 to now over £2 billion a year of investment, has been a highlight. On a regional basis, per capita investment in Scotland was more than twice that in England and three times than in Northern Ireland and Wales, reflecting the dominance of onshore wind in Scotland.
“Overall, investment of circa £65 billion is required to meet Government’s deployment projections for renewable heat and electricity to 2020, which looks achievable based on current investment levels, although it will require clear ongoing policy support to ensure investors have the confidence to continue to invest.”
The report also features commentary pieces and case studies from across the renewable energy industry to give readers an impression of what it is like doing business in this exciting sector of the UK’s growing green economy. Contributors range from renewable energy specialists to major organisations integrating renewables into their business operations, such as Siemens Financial Services and Tesco.
For more information or to request an interview, please contact:
Press Officer, REA
+44 (0)20 7981 0856
+44 (0)7771 545 870
Media Relations Manager, PwC
+44 (0)20 7212 1391
Notes to editors
Prime Minister Theresa May delivers speech outlining her priorities for Brexit negotiations, Renewables industry urges PM to support low-carbon sectors in which UK can become a global leader, Industry outlines key remaining questions following the speech...
Transport Minister John Hayes MP encourages industry to “be bold” as he announces £20m for twenty innovative low carbon freight projects, REA welcomes funding and encourages Government to support greater integration of biofuels into the transport energy mix...