UK sees record GBP 10.7bn in renewables investment in 2014 - PwC

Investment in the UK renewable energy sector last year was at record high of GBP 10.7 billion (USD 17bn/EUR 15bn), according to an annual analysis by PwC for the Renewable Energy Association.

Almost GBP 10 billion has been invested in renewable electricity generation, with offshore wind and solar attracting the largest share. Solar accounted for 45%, or GBP 4.5 billion of investment, making a step change in deployment, PwC said today.

Overall, renewables spending in the UK since 2010 has reached GBP 40 billion. A further GBP 50 billion is estimated to be needed for the country to reach its 2020 renewable energy targets. "The sector will be looking to the new Secretary of State to provide the investor certainty through to the end of the decade and beyond, both in terms of funding and technology preferences," said Ronan O'Regan, PwC renewables and cleantech director.

PwC also noted that 2014 saw the first Contract for Difference (CfD) auctions. It said that while CfDs are driving good deal for consumers, they are providing certainty only to the winners, with investors reluctant to back developers without a CfD. It also said that the lack of guidance about volume requirements after March 2021 is making it difficult for renewable power developers to manage their pipeline.

Renewable heat is seeing low levels of investment, while there were no capacity additions for renewable transport in 2014, according to the report. "If the historical investment trend continues renewable heat will miss its 2020 sub sector target, and renewable transport fuels will remain reliant on lower cost imported biofuels," said O'Regan.

(GBP 1.0 = USD 1.579/EUR 1.385)

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