A global renewables investment survey found that the UK’s continuing lack of clarity over the role of renewables in the future energy mix as well as the “policy hiatus” caused by the upcoming election has damaged the UK’s international competitiveness.
Analysts at consultancy EY said in their latest report on global renewables investment that the UK has slipped to seventh place on their investor attractiveness index, its lowest ranking in 12 years.
“The very slow passage of market reform and the late introduction of the regime has made it very difficult for developers to sanction investment in new projects,” explained EY’s energy corporate finance leader Ben Warren.
“The upcoming election means that we can expect an effective moratorium on energy policy. While it is encouraging that politicians are using this policy ‘down-time’ to issue cross-party pledges on climate change, there is little or no policy behind the rhetoric to convert this into concrete commitments,” Warren added.
The UK is suffering from rising competition from foreign countries which may divert investor interest.
New legislation in France underpinning its energy transition has made its policy objectives clearer while emerging economies such as India and China continue to benefit from low costs of capital, EY said.
In EY’s previous quarterly report the UK was placed sixth in the attracitveness index but now falls below India to fill seventh place.
Canada and Japan stand in fifth and fourth place respectively while the top three spots are held by China (1st), the US (2nd) and Germany (3rd).