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| Version 0 | Version 1 |
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| UK green energy investment halves after policy changes | UK green energy investment halves after policy changes |
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| Investment in green energy fell 56% in UK in 2017 – biggest fall of any country – after ‘stop-start’ support from government | Investment in green energy fell 56% in UK in 2017 – biggest fall of any country – after ‘stop-start’ support from government |
| Adam Vaughan | Adam Vaughan |
| Tue 16 Jan 2018 13.35 GMT | Tue 16 Jan 2018 13.35 GMT |
| Last modified on Tue 16 Jan 2018 14.52 GMT | |
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| Investment in clean energy plunged further in Britain than in any other country last year because of government policy changes, new figures show. | Investment in clean energy plunged further in Britain than in any other country last year because of government policy changes, new figures show. |
| The amount companies spent on green energy in the UK rose during the years of the coalition government (2010-2015) but has now fallen for two years in a row under the Conservatives, according to analysis by Bloomberg Energy New Finance (BNEF). | The amount companies spent on green energy in the UK rose during the years of the coalition government (2010-2015) but has now fallen for two years in a row under the Conservatives, according to analysis by Bloomberg Energy New Finance (BNEF). |
| While investment in wind, solar and other renewable sources slumped by 56% to $10.3bn (£7.5bn) in the UK, worldwide spending climbed 3% to $333.5bn (£242.4bn), the second-highest level on record. | While investment in wind, solar and other renewable sources slumped by 56% to $10.3bn (£7.5bn) in the UK, worldwide spending climbed 3% to $333.5bn (£242.4bn), the second-highest level on record. |
| Mary Creagh, Labour MP and chair of the environmental audit committee, warned that the fall would put the UK’s climate targets at risk. | Mary Creagh, Labour MP and chair of the environmental audit committee, warned that the fall would put the UK’s climate targets at risk. |
| “This is the second year in a row that renewable energy investment in the UK has nose-dived. Current rates of investment simply won’t deliver enough renewable energy to meet our legally binding carbon reduction targets,” she said. | “This is the second year in a row that renewable energy investment in the UK has nose-dived. Current rates of investment simply won’t deliver enough renewable energy to meet our legally binding carbon reduction targets,” she said. |
| Caroline Lucas, Green party co-leader, said the UK figures were damning. | |
| China led the global charge, with investment jumping by nearly a quarter to $132.6bn, a new high. The amount of solar installed in China increased by more than three-quarters on the year before as costs fell. | China led the global charge, with investment jumping by nearly a quarter to $132.6bn, a new high. The amount of solar installed in China increased by more than three-quarters on the year before as costs fell. |
| Worldwide, solar took the lion’s share of spending on renewables, at $160.8bn, followed by windfarms. | Worldwide, solar took the lion’s share of spending on renewables, at $160.8bn, followed by windfarms. |
| Jon Moore, chief executive of BNEF, said: “The 2017 total is all the more remarkable when you consider that capital costs for the leading technology – solar – continue to fall sharply.” | Jon Moore, chief executive of BNEF, said: “The 2017 total is all the more remarkable when you consider that capital costs for the leading technology – solar – continue to fall sharply.” |
| Investment increased by 1% to $56.9bn in the US, the second-biggest market for clean technologies, despite the Trump administration’s efforts to favour coal and nuclear power. | |
| However, spending also fell in Germany, Japan, India, Norway, Turkey and Taiwan. The fall of 56% in the UK was the steepest decline, far out-stripping the decrease of 26% for Europe as a whole. | |
| Around half of the UK spend, $4.8bn, was a final investment decision by Ørsted of Denmark on a single huge offshore windfarm, the Hornsea 2 project off the Yorkshire coast. | Around half of the UK spend, $4.8bn, was a final investment decision by Ørsted of Denmark on a single huge offshore windfarm, the Hornsea 2 project off the Yorkshire coast. |
| Another big green energy firm, npower’s parent company, Innogy, said the UK was still an attractive place to invest, but there had been a stop-start approach to support from government. | Another big green energy firm, npower’s parent company, Innogy, said the UK was still an attractive place to invest, but there had been a stop-start approach to support from government. |
| Paul Cowling, director of wind energy offshore at Innogy SE, said: “It’s just very lumpy. You have this very sort of cyclic type of approach that government have had in the past.” | Paul Cowling, director of wind energy offshore at Innogy SE, said: “It’s just very lumpy. You have this very sort of cyclic type of approach that government have had in the past.” |
| The German firm is planning to spend €3.5bn (£3.1bn) on renewables over the next three years, with the UK billed as the company’s second-biggest market. | The German firm is planning to spend €3.5bn (£3.1bn) on renewables over the next three years, with the UK billed as the company’s second-biggest market. |
| Cowling confirmed that the company would be competing for a slice of the £557m pot of government subsidies for offshore windfarms that will be auctioned next year. | Cowling confirmed that the company would be competing for a slice of the £557m pot of government subsidies for offshore windfarms that will be auctioned next year. |
| BNEF said that while the promise of future subsidies showed the government was behind the sector, it agreed with Innogy on the need for greater clarity on what ministers want over the next decade. | |
| “What’s needed when we hear from investors and developers is more transparency from the government. When you compare the Netherlands and Germany there’s more transparency up to 2030 on [wind power] capacity through competitive auctions,” said Keegan Kruger, wind analyst at BNEF. | |
| Kruger added that he expected the trend in UK investment to continue downwards until around 2020, when it would likely stabilise because of new investments in offshore windfarms. | |
| As well as solar parks and windfarms, the BNEF analysis counts clean technology investments as including smart grids, energy efficiency and battery storage projects. It also includes biomass, waste-to-energy schemes, marine energy and small hydro projects but excludes large dams. | |
| • Follow Guardian Business on Twitter at @BusinessDesk, or sign up to the daily Business Today email here. | • Follow Guardian Business on Twitter at @BusinessDesk, or sign up to the daily Business Today email here. |
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