UK Government renewables policy is “arguably jeopardising UK energy security”, says EY

The UK Government’s approach to renewables is “arguably jeopardising UK energy security”, according to a new report from EY.

The UK fell five places in the EY Renewable Energy Country Attractiveness Index, from eighth to 13^th, in the course of a year.

The report says: “The UK Government’s noncommittal, if not antagonistic, approach to energy policy continues to go against the grain of almost universal global support for renewables. Not only stalling project development and investment inflows, this is arguably jeopardizing UK energy security.”

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The report also warns that the upcoming EU referendum is “creating concerns over the risk profile of UK investments”.

Further delays to a final investment decision on the proposed Hinkley Point C nuclear plant leave the UK in serious jeopardy of a major energy supply deficit within the next decade, according to EY.

The auditor also warns that suggestions the Government would turn to capacity markets rather than increased renewables generation if Hinkley Point C did not go ahead reinforce the “already hostile policy environment” for renewables.

The report found that “scaled-back renewable energy ambitions” have weakened European renewable energy investment potential.

The firm said European markets slipped down the attractiveness rankings, while less mature markets across Latin America, Africa and Asia continued their ascent, reveals the latest edition of the report.

RECAI Chief Editor Ben Warren said: “Emerging markets are transforming their energy industries at an unprecedented pace. Last year, renewable energy investments in the developing world overtook those in the developed world for the first time. Latin America, in particular, has become something of a litmus test for how quickly markets can grow.”

The index ranks 40 markets on the attractiveness of their renewable energy investment and deployment opportunities, based on a number of macro, energy market and technology-specific indicators.