Investment in renewables will fall by 95% over the next three years, according to a study by the Green Alliance.
Its analysis of the UK’s infrastructure pipeline predicts a dramatic 95% fall in investment between 2017 and 2020. It also found that renewables spending has fallen by £1.1bn in just the last six months, which the report claims is due to a shrinking pipeline of projects.
The news follows several government subsidy cuts over the last 18 months, which have affected the renewables industry. The report stresses the investment cliff edge must be avoided if the UK is to meet its carbon budgets and Paris agreement pledge.
“Renewables will be cheaper than new fossil power stations by 2025 at the latest if we allow companies to build, learn, and cut their costs, said the Green Alliance acting deputy director Dustin Benton.
“But the government has been holding back the final bit of support needed to make renewables subsidy free. It’s also blocked the cheapest renewables from being built. Unsurprisingly, the result is a 95% fall in investment.”
However, the report also found that the trend of rising investment in high carbon infrastructure and falling investment in low carbon infrastructure has been reversed for the first time since 2012.
A spokesperson for the Department for Business, Energy and Industrial Strategy said: “We are fully committed to a low carbon future and the Office for Budget Responsibility recently projected that £8.4bn will be spent on renewable projects in the UK in 2020/21.
“We are one of the best countries in the world at tackling climate change with £52bn invested in renewable projects in the UK since 2010. Last November we reaffirmed our commitment to spend £730M of annual support on renewable electricity projects over this parliament.”