A report published yesterday by the London School of Economics (LSE) said the UK's energy sector must invest £330bn by 2030 for government to achieve carbon emission targets.
The figure in the report, commissioned by Npower, is a significant step up from the £110bn the government estimates must be spent by 2020 to upgrade the energy infrastructure.
The report outlines three scenarios for 2030, covering: a world where revitalised UK and EU economies, as well as stable politics, allow £330bn to be invested in clean energy to meet climate targets; a new reliance on gas; and a future where austerity has led to stagnating investments and technologies such as carbon capture and storage are not delivered.
Professor Samuel Fankhauser, co-director of the Grantham Institute on Climate Change and the Environment and author of the report, said: "This report shows how fragile and delicate the equilibrium of factors is for protecting the future of the UK energy industry”.
“A slight change of emphasis in policy, a weakening economic picture or a preference for cheaper energy sources over low carbon energy generation could result in very different operating environments for UK businesses,” he said. “It is crucial UK businesses take action now to overcome the potential challenges they may face."
As always, I would be very interested to hear your views.