While the new structure of binding contracts has still to be ratified their is fear from energy spectators that the governments under investment within the green energy field is likely to cost them in the coming years. With another day and another report calling to task the inconsistent nature the UK government focus on green energy this latest report is claiming the UK is chancing falling into an energy gap due to their poor renewable power actions.
Investors Need To Be Focused On Renewables And Not Fossil Fuels
With fossil fuels and conventional power supplies continuing to vastly outweigh the amount of energy they produce in comparison to renewable energy from hydro electric, thermal, ground source and solar power energy which equates to approx 4% of the UK actual energy generation at the last analysis. Thus it’s clear that investors need a greater impetus not just to invest in the UK but also globally to bridge potential future energy gaps.
A £100BN Hole Is developing From Under Investment
The report has measured investment patterns, uptake rates, population levels and energy demands and has expressed the shocking finding that the UK alone is seriously underfunding the development of renewable energy and this consistent lack of investment is currently sitting at £100BN energy financing deficit and other worrying findings to come out of the report are that the UK is vastly under investing in it’s bid to reach it’s 2020 carbon goals.
Who Is To Blame For Under Investment In The UK Renewable Energy Market
The UK is not alone in it’s efforts in reaching meaningful energy change with many other countries globally not meeting energy targets set at the Kyoto energy summit. but efforts for any dramatic changes to a sector which is worth billions in the UK and Trillions globally was never going to be simple, however it is the approaches that have been called into question. with the latest report claiming a carbon bubble has been created due to lack of substantial global effort to overhaul nations desire for fossil fuels. The Bank of England is consistently evaluating the UK’s reliance on fossil fuels and the risk under investment is presenting and thus is putting renewed emphasis on departments to increase their efforts to bring about change.
Can The Bank Of England Bring A Change To UK Renewable Investment
While The Bank Of England will not advertently be able to bring change to energy markets their ability to clarify the market has the ability to bring change at least to government protocol. At present their is a fear that energy companies could be being over valued as their products actually have the potential to destabilize the world and thus calling into question their ability to actually continually proliferate their fossil fuels.
The Carbon Bubble Is A Serious Concern
The potential over estimation of an energy market and it’s ability to operate globally under such circumstance is another factor why the so called carbon bubble effect with fossil fuels needs addressing. Continual uncertainty within the renewable industry plus the effects of the issues surrounding the carbon bubble should act as a huge incentive for the UK government to get it’s renewable energy guidelines back on track to bring stability back to the market and increase future investment to fill the renewable energy finance gap.
Will The UK Stay On Track To Meet It’s Carbon Targets
Given that they operate a five yearly review of their targets and given the recent figures coming out of the report regarding the 2020 targets it could be closer scrutiny needs to be paid to the task at hand. While 2050 is a long way off and long term energy plans from solar PV panels, wind generation, hydro electric and more can likely be put in place before these targets are on the periphery it’s 2020 that need more attention.
The Government Is Undermining Low Carbon investment
While binding targets have been agreed the overall impact of lack of investment as a result of the EU changes to share responsibility do appear to be creating a move away from renewable investment. As previously reported the impact this attitude is having on solar panels, wind generation and hydro electric projects being canceled than drastic action is needed. Such lack of clarity is only going to increase the green financing gap further and given the current level of emery being produce from renewable energy sources within the UK at around approx 4% it’s clear a dedicate plan of action need to begin sooner rather than later.
*Report By The Environmental Audit Committee
Some previous related articles of interest:
Huge energy reforms set to be put in place in the UK
The Housing Standards review and it potential to raise carbon levels
The long term solar potential that can be realised by the joint China and UK renewable power agreement