21 Feb Green Energy rising in UK investment table
Government funded research by the Digital Economy Council indicates a significant rise in technology investment, with fintech and artificial intelligence taking a commanding position in terms of UK investment.
Aside from technology, studies show that the green energy industry represents the third most popular investment choice for UK corporates.
There has been a number of notable deals over the last year, including the significant investment in OVO Energy by Japanese business Mitsubishi Corporation. Other projects included investment into solar businesses including Oxford PV and Bboxx. In total, the investment raised within the green industry reached approximately $1 billion, a 45% increase from 2018.
Government policies, improved technology and continued decline in costs are driving more attention to the renewables industry. Furthermore, the well-documented impacts of climate change and the rise of environmental consciousness have likely had an influence on transforming investor interest into a vital market that is critical in meeting net-zero targets.
Stephen Fitzpatrick, the CEO of OVO Energy explains that corporate and government activity over the last few years clearly shows a significant interest in the clean energy market. The level of urgency and action have also accelerated, with further pressure to reduce carbon emissions delivering an added boost to clean energy investment.
It isn’t just an increase in green energy investment, but a shift in focus from conventional power generation projects to distributed infrastructure projects such as batteries, storage and solar. Instead of investing money directly into major power developers, investors have the opportunity to allocate revenue into technology that is primarily aimed at supporting the customer.
This transition towards a customer-centric approach is viewed as a critical move for energy businesses to remain competitive and work effectively towards a net-zero future. As Fitzpatrick explains, the focus should be on developing technology that delivers the most efficient and lowest possible costs for customers.
OVO Energy is a prime example of how diversification and the transition into other markets can attract further investment. The business has focused its attention on customer engagement and has positioned itself to expand overseas. With support from Mitsubishi investment, OVO Energy has started operations in a number of other countries and continues to focus on launching green energy products such as battery storage systems.
OVO Energy believes that the UK is in a leading position to influence the clean energy market. The UK is one of the first nations to expand its energy market and is gaining global attention in regard to how the market will make the transition.