New report shows growth of renewables sector, but highlights we have much further to go

The Association for Renewable Energy and Clean Technology annual report shows while progress on renewable power remains positive, until supportive Government policy measures are forthcoming for heat, transport and circular bioresources, it will continually be a challenge for the UK to meet its legally binding net zero commitments. 

The REA published their annual ‘state of the industry’ report Review23, saying that the entire energy transition still faces significant challenges which are currently delaying the roll out of low carbon technologies across all sectors. 

The report, which presents the latest deployment and employment figures for the renewable energy and clean technology industry, shows that while progress on renewable power remains positive, until supportive Government policy measures are forthcoming for heat, transport and circular bioresources, it will continually be a challenge for the UK to meet its legally binding net zero commitments. 

The report highlights that the energy transition is as much an economic opportunity as an environmental imperative. The industry is currently on track to support more than 210,000 jobs by 2035, with the market value doubling from 2022 at £23bn to £46bn by 2035. However, political uncertainty and rolling back on green policies has meant that renewable developers are hurting, and international investment risks going elsewhere. With the right policy and regulatory environment, the Government can ensure that these figures are exceeded, and the UK can continue to be a world-leader. 

As highlighted in last year’s report, jobs are found across the country, although numerically, much of the industry is currently weighted towards London and the South East, reflecting a trend across the economy. However, the modelling shows that consistent and proactive support from the Government – for example, more use of Supply Chain Plans – could see future jobs and investment distributed more equally across every region and nation of the UK. The North East could see a 111% increase in market value by 2035, the North is projected to support around 30,600 jobs with another 12,700 jobs held in Yorkshire and the Humber. Harnessing the potential of all regions of the UK and accelerating deployment of all clean technologies is essential. 

Some of the key findings include form this report included seeing over 140,700 people employed in the renewable energy and clean technology sector in 2021/22. The REA projects that this could increase to 210,000 by 2035 including the addition of projected energy storage and flexibility services. In 2022, bioenergy continued to play a significant role generating clean power, while wind energy accounted for more than half of all renewable electricity. Another finding was that recycling rates for 2021 increased slightly, to 43.7% and while any increase is positive, the circular bioresources sector remains overlooked, and with the organics industry in a prime position to help the UK deliver on our net zero targets it is disappointing that industry is not able to capitalise on its full potential. 

 

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