The figure quoted in the report published today by The London School of Economics is 65 per cent more than the £200 billion government calculates must be spent by 2020.
The report outlines three scenarios for 2030, covering: a world where revitalised UK and EU economies and political cohesion allow £330 billion 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, author of the Npower Future Report, warned businesses to take the necessary action needed to deal with the future scenarios.
“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. It is crucial UK businesses take action now to overcome the potential challenges they may face,” he said.