The Renewable Energy Association (REA) has conducted a new survey in order to better understand the current state of the UK renewable energy sector.
The REA has suggested that investment in the renewables project pipeline has slowed and that its members are concerned about the new Contracts-for-Difference mechanism under the Energy Bill.
Senior managers from 68 companies responded to the survey.
Findings of the survey confirm the Energy Bill is cause for concern with 51 percent of renewables executives believing that Contracts for Difference will not be effective in bringing forward new renewable power capacity.
69 percent believe that the lack of an emissions target in the Energy Bill sends a “poor” or “very poor” signal to investors.
Only four percent believe the UK has a “good” or “excellent” chance of meeting its 2020 renewable energy target.
Gaynor Hartnell – “The UK has to achieve a higher growth rate than any other member state in order to reach its 2020 renewables target.”
However, the survey shows no significant overall deterioration in employment over the past six months. Just under a half of companies reported broadly stable employment levels and nearly as many firms recruited staff as have laid them off.
Looking forward over the next six to twelve months 62 percent of companies expect employment levels to stay the same, and twice as many firms expect to see employment increasing, compared to those expecting a decrease in employment.
REA chief executive, Gaynor Hartnell, comments: “We will repeat this survey every six months in order to build up a comprehensive picture showing trends in confidence levels. Billions of pounds of investment needs to flow into renewables infrastructure. Our aim is to provide Government and stakeholders with a tool to gauge how policies are being received.
“The UK has to achieve a higher growth rate than any other member state in order to reach its 2020 renewables target. Mixed messages remain a problem and industry needs policy certainty and political consistency. The prize is up to 400,000 jobs by 2020, economic growth and greatly improved energy security.”
For more on the survey visit www.r-e-a.net