Over the next few decades we will have to address an investment challenge towards its transition to a low carbon energy future.
According to a recent report from the Institution of Civil Engineers (ICE), the government should set binding targets in the way towards the decarbonisation of the UK’s electricity sector in order to promote the creation of low-carbon electricity generation schemes. A range of measures from now until 2030 should be put in place, so that investor’s confidence in low carbon infrastructure would be enhanced.
Investments in low-carbon infrastructure highlight the importance on stimulating the UK’s future growth and meeting its commitment to cut its CO2 emissions by 34% from 1990 levels by 2020 and by 80% by 2050. Achieving this transition will require significant investments and the government should take action to set the right investment conditions and interim targets. The report indicates that “ Whilst it is difficult to envisage 2050 with great certainty, the durability of infrastructure means that many of the decisions in this and the next decade will still be with us then. Policy in the much shorter term must encourage investment and behaviour which maximises the chances of reaching our long-term objective.”
Also, the report concluded that by 2030 a realistic target for the UK would be a 60% reduction in carbon emissions. However, even if in the past year the government took big steps to address climate change issues, the lack of delivering consistent strategic messages related to its objectives and mechanisms, left the sector experiencing great challenges.
These challenges such as difficult market conditions, inadequate funding channels, and perceived risk could be best meet by a constant policy, which reduces the capital costs and enables efficient and effective supply chain development. The report supports that the government has to focus on making existing schemes to deliver, instead of devising new schemes.
A technical director operating in the field mentioned that “I tend to agree on the point about consistency. The regulatory framework, and its message, has to be the same and telegraphed to us so we can plan for it.” By pointing to the example of government’s solar subsidies cuts, he supports that these cuts had damaged their incentives and confidence in investments in the government’s Green Deal programme. Although the grid electricity supply decarbonisation effort was high on the energy agenda, ensuring the energy security of supply has even more been critical to the entire economy.
As a matter of urgency the government must take significant steps to create the right regulatory conditions to make sure that there are adequate incentives for low-carbon investments.
By keeping up to date with the latest UK and EU energy legislation Syntegra Consulting‘s experienced team has the skills and the resources to incorporate a number of green technologies and low-carbon investment strategies at competitive prices. For more information on Building Service Design and Energy Consultancy Services, please go to https://syntegragroup.com/services-we-offer/building-services-consultancy-energy-sustainability-consultants/