Brexit and government to blame for latest fall in attractiveness of UK renewables
Source: Solar Power Portal
The UK has once again slipped down international rankings for attractive renewable energy markets after the new government’s decisions to close the Department of Energy and Climate Change (DECC) and approve Hinkley Point C “dealt a blow” to the country’s prospects.
This was the conclusion of the latest Renewable Energy Country Attractiveness Index (RECAI) from EY, which records market changes around the world. It claims the UK’s renewables sector faces uncertainty following a summer and early autumn full of new developments.
While acknowledging the impact of the UK’s decision to leave the European Union, EY’s report points to the new government under Theresa May and the decisions it has made since the vote.
Coupled with Brexit uncertainty, it claims the Whitehall reshuffle, which saw the formation of the Department of Business, Energy and Industrial Strategy (BEIS), and the green light given to Hinkley “have dealt a blow to the country’s already floundering renewable energy sector and its attractiveness in the eyes of investors.”
The report does point to the continuing success of the UK’s offshore wind sector which according to the Crown Estate, which owns the UK’s near shore, will supply the UK with 10% of the country’s electricity demand by 2020.