According to a latest research conducted by alternative energy analysts at GlobalData, UK’s renewable energy installed capacity is expected to match the dominant thermal energy sector by 2025. Aggressive government policies and support are expected to be a key reason for a drastic shift in the UK’s energy mix by 2025.
The report determines that the renewable energy industry is the fastest-growing segment in the UK’s power sector, and is expected to climb significantly from 11,000 MW of installed capacity recorded last year.
The report predicted that, by 2025, cumulative installed capacity of renewable energy will reach up to 79,000 MW, which is just 2,000 MW less than the anticipated capacity of thermal power capacity at that time.
According to the report, the wind energy sector is expected to grow at the fastest pace — from 6,000 MW in 2011, to 53,000 MW in 2025. Solar photovoltaics is also expected to show strong growth — from just 1,000 MW in 2011, to 13,338 MW in 2025.
The UK’s energy economics create good market potential for the growth of renewables, mainly because of high retail electricity prices, energy security concerns, aging nuclear reactors, and restrictions on the use of shale gas. Resource constraints and price pressures create opportunity for government, developers, and investors to invest in the renewable energy sector in the UK against the volatile natural gas market.
UK has announced significant investments in wind energy and ocean energy. The country has massive offshore wind energy resources in the North Sea. Several companies may be looking to invest in this region in the near future, as they may have the option to export electricity to other countries, as well. As the emissions reduction targets in the UK and EU increase, the importance of renewable energy will only increase.
The views presented in the above article are author’s personal views only.
Mridul Chadha currently works as Head-News & Data at Climate Connect Limited, a market research and analytics firm in the renewable energy and carbon markets domain. He earned his Master’s in Technology degree from The Energy & Resources Institute in Renewable Energy Engineering and Management. He also has a bachelor’s degree in Environmental Engineering. Mridul has a keen interest in renewable energy sector in India and emerging carbon markets like China and Australia.