Environment

A ‘hostile environment’ for renewables: Why has UK

clean energy investment plummeted?
'It’s very clear there is a very substantial downward trend in new investment, which is across the
board in terms of investment in clean technology ranging from big wind farms right down to the
effective collapse of the solar market'

Josh Gabbatiss Science Correspondent |

@josh_gabbatiss |
Saturday 19 May 2018 19:14 |
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The Independent

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The UK has been a world leader in wind power, but a slump in investment has led to concern from industry experts ( AFP )

Judging by the headlines, renewable energy in Britain is booming. Barely a week goes by without news that
wind power has overtaken nuclear or the country has gone another successive day without coal.

Yet these figures obscure a reality in which the withdrawal of government support and confusion around future
investments have led to a “dramatic and worrying collapse” in green investment.

Critics say the government has created a “hostile environment” for renewable energy that scares away potential
investors and prevents the UK from reaching its full potential.

The arrival of the Climate Change Act in 2008 and the subsequent rollout of electricity market reforms saw the
UK become a world leader in renewables, particularly wind power.

Read more

Government failed to consider environmental impact of policies

“We had a very clear policy framework from 2008 and that has been less certain in recent years,” says Emma
Pinchbeck, executive director at trade association RenewableUK.

“That explains why we have had record-breaking deployment as things come online from that previous policy
framework, but why now we are looking at a dropoff.”

There tends to be a lag of five to 10 years between a project being funded and it coming online, which is why we
are only now experiencing the benefits of this early investment period.

Despite widespread popular support for renewables – 85 per cent, according to the latest figures – annual
investment in clean energy is now at its lowest point in a decade.

10 photographs to show to anyone who doesn't believe in climate change

This is not all bad, according to Phil MacDonald at climate change think tank Sandbag: “The dropoff in
investment partly hides a good news story, which is that renewables have fallen in cost dramatically,” he says.

Improvements in wind and solar technology now mean the UK is getting more renewable energy for less money,
but this does not account for the decline in its entirety.

“It’s clear there is a substantial downward trend in new investment, which is across the board in terms of
investment in clean technology ranging from big wind farms right down to the effective collapse of the solar
market,” says Dr Alan Whitehead, Labour’s shadow minister for energy and climate change.

Read more

World invested more in solar than coal, gas and nuclear in 2017

In a report published this week by the Environmental Audit Committee, MPs warned this decline posed a real
threat to the UK’s climate change targets for the next decade.

Committee chair Mary Creagh said this week: “Billions of pounds of investment is needed in clean energy,
transport, heating and industry.

“But a dramatic fall in investment is threatening the government’s ability to meet legally binding climate change
targets.”

This downward trend can be traced to decisions made by the government in 2015, particularly its withdrawal of
support for onshore wind.

Under pressure from a group of MPs calling onshore wind “inefficient and intermittent”, the Conservatives made
a manifesto pledge to remove subsidies from new onshore wind projects.

“It’s one of these issues that had a very niche political purpose, which was to assuage the concerns of some
marginal consistencies in England, and to give the public more of a say over infrastructure in their
neighbourhoods,” says Whitehead.

However, what was not clear at that time was that the cost of onshore wind was set to plummet, making it the
cheapest form of electricity generation.

Unfortunately, the withdrawal of support and subsequent policy changes mean onshore wind is now essentially
banned in the UK, with planning applications for new developments plummeting by 94 per cent since 2015.

Read more

Wind power overtakes nuclear in UK for first time

At the same time, a 65 per cent cut to subsidies for households installing solar panels and a budget that declined
to provide new support for renewables before 2025 led to new private investments falling off a cliff.

Richard Nourse, of renewable energy investors Greencoat Capital, says the sudden drop in investment in
comparison to previous years is partly the result of a “last rush sale” in which onshore wind projects were
hurried through in the lead up to these policy changes.

However, he adds that ultimately the collapse results from the lack of auctions for new large-scale renewable
projects in the past couple of years.

“Those auctions are not being run, not so much because of solar but because of a visceral dislike of onshore
wind,” he says.

Whitehead adds: “Cumulatively that was a real neon-lighted statement that the government was pulling the plug
on what had previously been a reasonably smoothly operated regime of support to bring renewables to market.”

With a lack of certainty about support for new projects, experts say the government has effectively scared away
any investment.

“If anything, the country is beginning to introduce a ‘hostile environment’ for green investment for the future,”
says Whitehead.

Pinchbeck says: “This is a booming market, and the UK is currently the world leader for wind resource and
development – but small decisions can often have really big consequences.”

READ MORE
Growth in renewable energy projects slumps as government support falls

Renewables generated 104% of Portugal’s March electricity consumption

Scotland produces record amount of energy from renewables

“The onshore wind move was taken by many in the international community to mean the UK wasn’t actually
committed to renewables development.”

This is a gap that other nations are happy to step into. Many onshore wind farms being built across Europe are
now set to be so cheap they can be built without subsidies, and figures reported by the UN in April revealed
China was by far the world’s largest investor in renewable energy.

The UK is currently still a world leader in renewables, with nearly 30 per cent of the country's electricity in 2017
generated by clean sources.

Energy and clean growth minister Claire Perry said:

Once Hollywood Legends, Now "Our renewables sector is a British success story and
They're Working Regular Jobs will continue to thrive, with clean growth at the heart
DirectExpose
our modern Industrial Strategy.

“Over the last five years investment in renewables

People Born Between 1947 and has more than doubled while we will have invested
1979 With No Life Insurance £2.5bn on low carbon innovation by 2021."
Must Read This
Saving On Life
However, as it stands the government’s clean growth
strategy – intended as an “ambitious blueprint for
Brilliant Over 50s Life Cover Britain’s low-carbon future” – will not be enough to
Plan Storming the UK
meet its legally binding carbon budgets.
We Plan Lifestyles

Creagh said this week there was a need to “urgently

plug this policy gap and publish its plan to secure the
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investment required to meet the UK’s climate change
targets”.

Pinchbeck adds: “We’ll be at least 50 per cent renewable by 2030 – I suspect that’s actually on the conservative
side – but a lot of what we will be able to do will depend on policy decisions that the government makes.”

“Will we maximise the potential of this very cheap energy resource or not?”

More about: | Renewable Energy | Wind Power

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COMMENTS

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34 Comments •• RSS

EV docmaker 3 months ago

Solar is not collapsing in my house this month of May has been an energy boom from my modest rooftop system. I am
beating my prior records. I live in north Manchester so there is no excuse lets get the country's rooftops both South &
East/West facing fixed up with solar. I am home based so I use my energy live but for those who are out in the day adding
battery storage elevates your solar energy to another level. Allowing you to use what you stored during the day during the
grid expensive peak evening hours.

Reply • 1 likes

OnReflection 3 months ago

"Why has UK clean energy investment plummeted?"Because that's what we voted for in 2015. Duh.

Reply • 2 likes

shucky 2 months ago

"Despite widespread popular support for renewables – 85 per cent"

The implication being 15% and a handful of conservative MPs are blocking that which will save the planet. And
because that handful of MPs are married to the fossil industry. lol.

It's winding down because not many can continue to argue renewables are tenable.

Reply • 0 likes

geofwotwot 3 months ago

“It’s one of these issues that had a very niche political purpose, which was to assuage the concerns of some marginal
consistencies in England, and to give the public more of a say over infrastructure in their neighbourhoods,” says
Whitehead."Obviously with the exception of fracking which is overruled by government to go ahead, no matter what local
concerns.

Reply • 3 likes

JoJoMalone85 3 months ago

Answer can fit on the back of a postage stamp. Tory MPs have vested interests in fossil fuels.It's that simple.

Reply • 5 likes

NuclearValdez 3 months ago

The uncomfortable truth is that there is no such thing as clean energy.

Reply • -2 likes

MightyDrunken 3 months ago

It's quite simple really. The Tories look across the pond and want to copy what they see, as always. The USA has seen a
tremendous surge in natural gas from fracking and they want to copy it. I doubt if that is possible, the geology has to be just
right and we don't have a huge area to put a drilling site every few miles.

Reply • 2 likes

florere 3 months ago

What else do people expect from the Tories, it is only the Left that cares for the future of their great-grand children

Reply • 4 likes

3 RGJ 3 months ago

Low carbon energy is nuclear. 60 year life of plant

Reply • 0 likes

LordNelson 3 months ago

Followed by a million years for the radioactive waste to decay.

Reply • 4 likes

NuclearValdez 3 months ago

Stupid post. Lets assume that by "a million years for the radioactive waste to decay" you are referring to half
life of a particular nuclide.One million years is 3.2 x 10^13 seconds. To get the radioactivity, you divide the
natural logarithm of 2 by the half life in seconds to get a number indistinguishable from background
radiation. More significantly, it's less than solar radiation - still feel so good about those panels now?

-3 likes

JoJoMalone85 3 months ago

NuclearValdez - there's absolutely no need for nuclear energy plants and the horrible environmental risks they
bring. Solar, wind and tidal can provide for everything we need. We need more R&D in battery technology
and to stop hammering people for pricey solar panels.

3 likes

shucky 2 months ago

JoJoMalone85
You're going to install enough batteries to supply 100% of demand and have a back-up system (fossil?)
capable of recharging them or to supply if they are drained and you're concerned with the environmental
impacts of nuclear. O.o
Batteries have less than a 10 year life-cycle. Not only is the idea of installing that many batteries rather
absurd, what on earth would you do with them all in 7 - 8 years?

0 likes

3 RGJ 3 months ago

we can mot use solar or wind as a base load supply fact. Germany has 25 super size coal plants. We need nuclear gas and
coal. Do you want a unstable country sending us gas? If they want to ban oil in 20 years we need to start now. 50 nuclear
plants will be needed plus upgrading the grid, do any people see this getting done

Reply • -3 likes

HomoSapien 3 months ago

Why? Presumably because the lobbyists have convinced the Tories to pave the way for more nuclear and fracking.

Reply • 5 likes

3 RGJ 3 months ago

Do you know of any base loads supply we can use. Are you a Engineer?

Reply • -3 likes

grindelow 3 months ago

Wind power relies on subsidies UK wind farm costs fall almost a third in 4 years https://www.ft.com/content/e7cce732-e171-
11e6-9645-c9357a75844a[They appear to be making great strides but it’s very expensive electricity compared to the current
wholesale electricity price,” said Peter Atherton of Cornwall consultancy]The problem is the lack of storage so wind power
can be used for base demand instead of just when the wind is blowing. This storage [probably in the form of batteries] would
require yet more subsidies and add to the costs of wind power generation.Similar problems apply to solar energy whose price
also is rapidly falling.We will remain reliant on Combined Cycle Gas Turbines (CCGT) to match the energy demand to the
varying renewable output until cheap energy storage is possible. That could be well over a decade away.It's possible new
types of battery designed to be economic purely for grid storage (flow batteries?) could be available in the future.

Reply • -1 likes

[removed] 3 months ago

This comment has been deleted

Reply • 0 likes

NuclearValdez 3 months ago

You clearly don't understand the concept of the learning curve. Aviation was on a very steep one in the years
you mention. Renewable energy is hamstrung by the fact it is very diffuse, and unresponsive to demand. The
prospects for any radical improvement don't exist.

-1 likes

Ploppo 3 months ago

England leads the World on the most politically easily influenced people on the planet.... Led to vote for what is best for the
Tories and their rich donors, and what is most harmful to their own children and grandchildren.

Reply • 7 likes

Popeye 3 months ago

I read an article, in this paper, as far as I remember, about Tesla, the batter up andcar manufacturer. They have stoped power
blackoutsin a state in Australia employing renewable power. Any country can, by employing 140 percent capacity enjoy self
sufficiency in renewable power. This may be a bit more expensive to Install, but will more than pay for itself in a cleaner
environment. Each country must, install excess capacity to ensure a constant supply in case of breakdown and maintenance.

Reply • 7 likes

3 RGJ 3 months ago

Lithium how much does the world have fact.

Reply • -3 likes

MightyDrunken 3 months ago

Only 400,000,000,000,000 tonnes.

1 likes

[removed] 3 months ago

This comment has been deleted

Reply • 0 likes

Popeye 3 months ago

As I alluded to only post.

1 likes

NuclearValdez 4 months ago

Renewable generation bears no relation to demand, so renwables require back up, which isn't accounted for in the notional
cost. This makes them appear cheaper than they really are.There is also the fact that we have as high a proportion of
renewable power generation as it is possible to have, while still maintaining grid stability. You cannot afford to have power
cuts on the London undergtround, and the East/Wet Coast main lines.

Reply • -7 likes

Popeye 3 months ago

Renewable require back up.... Well who would have that?But, pray tell, do they not have a back up generating
station on standby in the event of a conventional generation station must shut down in an emergency?

Reply • 4 likes

grindelow 3 months ago

A problem created by renewable energy is that it makes the economics of running CCGT virtually
impossible. CCGT is called into play when renewable can't meet demand. Without renewables, CCGT would
be running near to full load much of the time thus generating income to offset the capital and running costs.
With renewable energy, the economics of CCGT becomes dodgy as income is much reduced relative to fixed
costs.

-2 likes

PurpleSpark 4 months ago

Not surprising. The only thing the UK seems to be a leader of these days is... well, nothing. Policies through the years have
made technologically less competitive and it lags far behind other major European nations. Not to mention the lack of
infrastructure, student debts, poverty etc.

Reply • 5 likes

Bluebayou 4 months ago

This month’s new phrase... “Hostile Environment “.

Reply • -2 likes

wildworld 4 months ago

Because it makes the price of electricity more expensive, companies will not invest if there are no subsidies attached and
people do not want to live anywhere near them.

Reply • -4 likes

John B Ellis 4 months ago

An alternative hypothesis is that Tory voters don't like the look of turbines, fearing that their visibility from their
properties will reduce their value, and that Tory MPs and Tory donors have considerable financial stakes in fossil
fuels, and in consequence want to maintain their share price by weakening the competition!

Reply • 12 likes

wildworld 3 months ago

it's not just the Uk-"Europe is full of old windfarms. The original subsidies have run out and there’s not much
appetite for new ones"http://joannenova.com.au/2018/05/is-this-the-start-of-the-death-spiral-for-old-
windfarms-in-europe/

2 likes

John B Ellis 3 months ago

Old, but not quite that old!

1 likes

Popeye 3 months ago

The motorcar also was also introduced into a hostile environment a 100odd years ago. Was it not? People are afraid
of things they do not understand. Turbines are not ugly. Much better than the plannet destroying conventional
generating stations.

Reply • 7 likes

3 RGJ 3 months ago

How does your tv and lights work base load energy not wind or solar. Lets talk facts the green energy is a
load of crud it does not work

-5 likes