UK to miss 2020 renewable target
Research released this morning (July 26) claims the UK will miss renewable energy targets unless £10 billion is invested.
Price Waterhouse Coopers says the UK needs a 'quantum leap' in offshore wind capacity investment and reforms to the energy market to attract pensions and life assurance funding.
A lack of pre-construction funding in the wind industry is blamed for the ten year target slipping.
Offshore wind plays a make or break role in the UK's renewable energy strategy. It is targeted with delivering around half of the additional 27GW generation capacity required to meet the UK's 30% renewable generation target by 2020.
However, last year less than half the average annual roll out rate of 1.1GW needed to meet the 2020 target was achieved, says PWC.
PWC's global energy and utilities advisory leader, Michael Hurley, said: "Offshore wind plays a make or break role in the UK's ability to hit its energy targets and time is running out very quickly on our ability to achieve them.
"The required roll out rate to achieve the 2020 targets is being hampered by the scarcity of pre-construction finance.
"We need to dismantle the barrier to investment by creating mechanisms to either limit the risk associated with the construction phase or to improve short term returns, without unduly pushing excess costs on to the consumer.
"If the construction and technology risks could be underwritten or transferred, this would open up offshore wind to pension and life company investors."