The Russian invasion of Ukraine has created a gas crisis across the world, and most notably Europe, driving nations across the world to accelerate their transitions to a low cost, clean energy system.
As European nations gathered to increase their renewable energy ambitions, the Biden Administration was forming its own renewable energy strategy with a focus on developing a clean energy manufacturing base the USA. In reaction to the USA’s Inflation Reduction Act, which provides $393bn of subsidies, the EU is currently forming the details its own Green Deal Industrial Plan which will likely relax state aid rules, introduce fasttracked permitting for clean technology and offer new incentives for investment. All the while China continues to develop more new renewable capacity than any country of earth, growing competitive new technologies like the 70-story-tall MySE 18.X-28X wind turbine, and OEMs like Goldwind, who aim to rival European companies like Siemens Gamesa and Vestas for dominance of the global market. Intensifying global competition for capturing a competitive advantage in renewables shows the importance of the sector to economic growth and productivity, and the need for the UK to take bold steps to retain its own competitive advantage in this space. Renewables are now the lowest cost means of generating new electricity, and will remain so even with the increases in supply chain costs caused by the tail of COVID and the war in Ukraine.
Renewables are able to offer countries around the world lower bills, green jobs, economic revitalisation and energy security, all whilst tackling the shared challenge of climate change. There is a huge demand for new component factories in the sector across Europe and the world, and therefore an industrial opportunity waiting to be captured for the countries who create the best investment environment for manufacturing investment. Furthermore, for the nation with those companies who can remain at the forefront of the development of new technologies, expertise and competitive products – there is an enormous global market to capture. So what can the UK do to retain our leadership in renewables in the midst of fierce global competition for investment, skills and supply chains
