Onshore renewables ‘could pump £28.9bn into UK economy by 2035’
Onshore renewables could pump £28.9 billion into the UK economy by 2035 and save consumers up to £1.5 billion every year.
That’s just one of the findings of a new analysis by the renewable energy investment company Thrive Renewables, which suggests there is a £66.5 billion potential investment opportunity if the government takes the necessary measures.
Trade bodies suggest 77MW of the required growth to hit net zero can be delivered by onshore renewables by 2035. This will require building 5.5GW of onshore renewable capacity annually between now and 2035.
This creates an annual investment opportunity of £4.75 billion with an estimated £2.75 billion investments on onshore wind.
The analysis recommends two actions the government has to take in order to unlock the real potential of such an investment.
The first one is policy stability – a simple energy strategy and certainty on mechanisms such as the distribution network connection planning and cost structures could allow the UK to benefit more quickly from the renewable sources, according to the analysts
The report also suggests it is essential to remove planning difficulties, which mostly arise from plans of local authorities that have not been updated from 2015 and therefore cannot grant permission to several wind farms.
The analysis also highlights how the onshore renewables are cheaper than gas generation – it notes new onshore wind can deliver power at £49 per MWh, which is 12.5% cheaper than gas generation.
Matthew Clayton, Managing Director of Thrive Renewables, said: “We are calling on the UK Government to stimulate the green recovery and deliver real, immediate and measurable impact on our economy.
“By providing policy certainty and creating a more positive environment for onshore renewables, the government can unleash huge private sector investment, create thousands of jobs and deliver a greener, cleaner UK for us all.”