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Wed, Oct 11

How is the UK's Energy Transition Doing?

The UK is in somewhat of a paradoxical position in regards to decarbonization and the energy transition. It has a plentiful wind resource, long coastline for marine power, and an important science sector. On the downside, the government seems to be unsupportive of green energy, its housing is the oldest and least energy-efficient in Europe, and its grid infrastructure needs upgrading.

This month the REA (the Association for Renewable Energy and Clean Technology), released its latest annual report REview23. The REA says:

“Growth and further successes are shown in the power sector, but until supportive government policy measures are forthcoming for heat, transport and circular bioresources, it will continually be a challenge for the UK to meet its net zero commitments in the short, medium and long term.”

  • Government must address policy gaps if it is serious about energy security and harnessing the economic potential of net zero

  • 14% of the UK’s energy (power, heat and transport) supplies came from renewable sources in 2022

  • Over 140,700 people were employed in the renewable energy and clean technology sector in 2021/22 – the REA projects that this could increase to 210,000 by 2035

  • Regional market value projections estimate that the value of the renewable and clean technology sector could reach ÂŁ46bn ($56bn) by 2035 given the right policy and regulatory conditions

 

Key findings include:

  • In 2022, bioenergy continued to play a significant role generating clean power, while wind energy accounted for more than half of all renewable electricity

  • 8.36% of the UK’s total heat consumption and 5.32% of the UK’s total transport energy consumption was generated by renewables in 2022

  • Recycling rates for 2021 (the latest available full year) increased slightly, to 43.7% and while any increase is positive, the circular bioresources sector remains overlooked, and with the organics industry in a prime position to help the UK deliver on its net zero targets it is disappointing that industry is not able to capitalize on its full potential.

In the report there was evidence of further positive delivery of renewable power deployment, but policy uncertainty, planning delays, deep infrastructure concerns and lack of a route to market have all cramped the renewable energy and clean technology sector and remain to be addressed – particularly in heat, transport and the wider circular bioresource agenda. Renewable developers are finding it hard to function, and international investment is going elsewhere.

Aside from the challenges of government inaction and lack of investment, the most important issues include use of biomass as energy, energy efficiency in buildings and transportation (outlying parts of the UK's rail network are still not electrified), and grid renewal. A slow planning process means that permitting can take up to a decade, which means, for example, that 2035 targets are unlikely to be met. The report fails to cover the building sector, but this is central to any transition: old buildings need to be retrofitted with insulation and new buildings should have high energy efficiency standards legally enforced. “Negawatts” of energy not needed to be produced are one of the cheapest and best forms of emission reduction; again Britain is lagging behind its neighbors in this respect.

Dr Nina Skorupska CBE, Chief Executive of the REA, says, “Even though it has been proven countless times that the energy transition is as much an economic opportunity as an environmental imperative, our sector still finds itself having to overcome naysayers time and time again.”

Without dynamic political leadership, and a long-term, cohesive plan, it looks likely that the UK will stagger along, failing to meet its ambitious decarbonization and energy transition goals.