UK Lags Behind Global Energy Transition, Urgent Action Needed

In a stark warning, EnergyUK, the trade body representing a significant 80% of the UK's power generation, highlights the urgent need for the UK to accelerate its energy transition efforts. A recent analysis by EnergyUK in collaboration with Oxford Economics evaluates the energy transition pace across the world's eight largest economies and outlines potential trajectories for the rest of the decade based on current national funding commitments.

The analysis paints a concerning picture of the UK's near-term investment in low-carbon electricity generation. India is predicted to lead with a robust 10.6% average annual growth in low-carbon electricity output through 2030, trailed by China at 7.2% and the US at 6.4%. In sharp contrast, the UK finds itself at the bottom of the list, projecting a mere 2.9% average annual growth for the same period.

While the UK is expected to present its response to multi-billion-dollar clean energy subsidy packages in the US and EU later this year, EnergyUK calls upon Chancellor Jeremy Hunt to strategize a comprehensive UK approach that matches global competition in funding, strategic direction, and technology breadth. The analysis underscores the UK's position as the 30th out of 38 OECD nations in terms of the proportion of recoverable capital investments in clean energy by businesses. EnergyUK's Chief Executive, Emma Pinchbeck, emphasizes the importance of a proactive response to ensure the UK's leading role in the clean energy sector isn't compromised.

Furthermore, the analysis delves into key cleantech sectors beyond electricity, with the UK emerging as a global leader in electric vehicle (EV) manufacturing. However, the report warns of potential challenges to retaining this leadership, with the US rapidly becoming an attractive market for EV manufacturing. As the UK strives to phase out unabated fossil-fuelled electricity generation by 2035, the report highlights the need for robust and strategic actions to maintain its position in the global energy transition landscape.

Source: Edie.net