21 Oct New leadership delivers major investment in the UK clean energy market
The recent changes in the UK Government and the commitment towards accelerating the transition to a green future have gained the attention of private investors, who are now showing strong interest in spending significantly on green energy projects.
Renewable energy companies have committed over $31 billion in the UK, and other private businesses are investing in clean tech and decarbonisation projects, supported by a change in domestic energy policy and favourable government plans.
Earlier this month, several leading green energy businesses committed to investing over $31 billion within the UK ahead of a meeting with the UK Government. The UK confirmed that the investment plan represented a major vote of confidence in the UK’s plans to prioritise growth across the country, generating thousands of jobs nationwide. The UK Government is prioritising conditions for businesses to progress, and the international investment summit represents a platform for every part of the UK to be a catalyst for innovation and investment.
The UK Government has experienced rising pressure to secure funding to support its campaign plans to deliver a green economy. The political group is committed to creating a zero-carbon electricity system by 2030. Just last week, the UK Government launched the International Investment Summit to secure the UK’s leading position within several key markets. During the summit, the Government secured over $82 billion of private investment, which will support over 38,000 jobs nationwide. The markets receiving the greatest funding were technology, life sciences, energy and transport.
At the summit, leading energy businesses Iberdrol and Orsted confirmed investments exceeding $40 billion. Most of these funds will support the development of offshore wind projects. Further investment was also confirmed for the hydrogen and carbon capture industries. The transport industry also secured investor interest, with Macquarie agreeing plans to invest just under $2 billion in green infrastructure and Octopus Energy renewable energy projects, including solar farms and energy storage. This will support the UK’s plans to deliver on its EV adoption goals.
Orsted’s plan to invest in the UK energy transition shows the change in energy policy within the new Government. Mads Nipper, the CEO of Orsted, explained that the reasons for investing in the UK are that aside from the clean energy targets, they see the commitment to delivering policies required to achieve these targets and a government willing to work with companies to enable the needed investment. Ignacio Galan, the Chairman of Iberdrola, explained that after investing over £30 billion in the last 15 years, the policy changes, combined with secure regulatory plans to increase their investments considerably over the next few years.
In the UK Manifesto, the Government plans to use public investment to deliver private funding, echoing a similar process applied in the UK with the Inflation Reduction Act. Since the new Government started, several new policies have been introduced, focusing on accelerating the green energy transition. The introduction of GB Energy was primarily for the delivery of investment in green energy projects. The Government has also invested in carbon capture and energy storage projects, delivered on offshore wind auctions, approved new solar projects and created a Solar Taskforce.
The UK Government is focused on introducing plans to expand the domestic energy storage infrastructure, expected to support the first major long-duration energy storage projects and strengthen domestic energy security. The plans are expected to boost investor confidence, secure billions in funding for new projects, and further job creation.
The significant change in the domestic energy policy has already helped attract additional private funding for the UK energy transition. Several major businesses have pledged considerable investment in green energy and clean tech projects in the last few months. As investor confidence rises and the Government demonstrates further commitment, the UK can secure additional funding for the green energy transition.
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