The recent change in leadership in the UK and the promise of accelerating the green transition appears to have caught the attention of private investors, who are pledging to spend large amounts of money on green energy projects. Renewable energy companies have invested more than $31 billion in the UK, and other private companies are also investing in renewable, clean and renewable energy across the country, supported by a positive shift in national energy policy and several other government initiatives. Investing in technology, decarbonization projects.
Earlier this month, some of the world’s biggest green energy companies pledged to invest around $31.39 billion across the UK ahead of talks with recently elected Labor Prime Minister Keir Starmer. The Prime Minister said the investment pledge was a “huge vote of confidence” in the government’s “relentless focus on driving growth across the UK”, which would create thousands of jobs across the UK, Starmer said. “Whether you’re in Scotland or Wales,” he said. , Northern Ireland or England – we are creating the conditions for business to thrive and our International Investment Summit will be the starting point for every region of the UK to become a powerhouse of innovation and investment. ”
The Labor government is under pressure to secure funding to support its election promise to develop a green economy. The party has ambitiously pledged to establish a zero-carbon electricity system by 2030.
On Tuesday this week, the Government held an international investment summit aimed at strengthening the UK’s leadership in several key industries. At the summit, the government is expected to secure $82.43 billion in private investment and support the creation of approximately 38,000 new jobs across the country. The industries that received the most funding were life sciences, technology, energy, and transportation.
At the summit, Spain’s Iberdrola and Norway’s Orsted announced investments totaling $31.39 billion and $10.45 billion, respectively. Most of these funds will contribute to the expansion of offshore wind power. Further investment in carbon capture and hydrogen was announced. The transport sector is also attracting investor interest, with Macquarie announcing plans to invest around $1.7 billion in green infrastructure and renewable energy projects with Octopus Energy, including solar farms and energy storage systems. This will help the UK meet its electric vehicle (EV) adoption targets.
Mr Orstead’s decision to invest heavily in Britain’s energy transition reflects the shift in energy policy under New Labor. Mats Nipper, CEO of Orsted, explained: “Alongside our clean energy goals, we are investing in the UK because of our commitment to building the policy framework needed to achieve those goals and our desire to work with businesses to achieve them. Because governments that are thinking about it are also looking at it and making the necessary investments possible. Iberdrola Executive Chairman Ignacio Galan echoed this sentiment, saying: “Having invested more than £30bn over the past 15 years, with clear policy direction, a stable regulatory framework and the UK’s overall attractiveness, we believe that by 2024 We will double our investment to reach up to £24bn in 2028.”
Labour’s manifesto states: ‘British households will face the highest energy bills in Europe due to the Tories’ decision to ban new onshore wind, fail to build new nuclear power stations and disinvest in home insulation. “It happened,” it said. Labor outlined plans to “use public investment to raise private funding”, similar to what was seen in the US through the Biden administration’s climate policy, the Cutting Inflation Act. He also pledged to roll out a Green Prosperity Plan to “make the UK a clean energy superpower”.
Since winning the July election, Labor has introduced several new policies and initiatives aimed at accelerating the country’s green transition. The Government has introduced legislation to establish Great British Energy (GBE), a publicly-owned green power company to develop and invest in renewable energy projects. Labor is also investing in carbon capture and storage projects in Merseyside and Teesside. Successfully conducted an offshore wind auction, resulting in 10 new projects. The National Energy System Operator (NESO) was established and separated from the National Grid. Approved three new large-scale solar power plants and established a solar power task force.
This month the government launched plans to expand the UK’s energy storage infrastructure. This is expected to support the development of the first significant long-term energy storage facility in almost 40 years and help strengthen energy security. The move is expected to improve investor confidence, secure billions of dollars in funding for important projects, and support job creation.
UK Energy Secretary Michael Shank said: “These projects will reduce our dependence on fossil fuels and strengthen our energy security by storing excess clean, home-grown energy generated from renewable sources. We can protect household bills and achieve our key mission: “Making Britain a clean energy powerhouse.” ”
Dramatic changes in UK energy policy under the recently elected Labor government are already helping to attract high levels of private funding in the country’s energy transition. Several major companies have committed billions of dollars in investments in a wide range of green energy, clean technology, and decarbonization projects in just the first three months of new leadership. We expect to see billions of dollars more in investment as investor confidence grows and governments demonstrate their ability to drive the green transition.
Written by Felicity Bradstock, Oilprice.com
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