We need to go further, faster to achieve government's ambitions set out in the British Energy Security Strategy of 50GW of offshore wind by 2030 and up to 70GW of solar power by 2035. Key recommendations: • Together with regulators and industry, set up a task force and develop deployment roadmap for onshore wind in 2023 including clear milestones to reach required deployment levels for 2035 net zero grid, following the example of the offshore wind sector. • Together with regulators and industry, set up a task force and develop deployment roadmap for solar power in 2023 including clear milestones to reach up to 70GW by 2035. • Work with regulators, devolved administrations, local authorities, industry and key stakeholders to streamline the planning and environmental permitting processes to ensure new power generation can come online as soon as possible. |
226. The proportion of annual electricity generated from renewables in the UK has grown fivefold between 2010-2021,186 with 2020 marking the first year in the UK's history that electricity came predominantly from renewable energy.187 Costs for leading renewable technologies, such as wind and solar, have dramatically fallen over recent years, making them a cost-effective way to reach net zero. The UK is attracting significant investments and leading in the deployment of renewable technologies.188
227. Renewables projects create jobs and growth across the UK. According to figures by the Association for Renewable Energy and Clean Technology (REA), over 140,000 people were already employed in the renewable energy and clean tech sector in 2021/22, with more than half in the power sector.189 They also predict that by 2035, the sector could support a further 70,000 jobs and the market value could double to £46bn.190 According to RenewableUK the offshore sector alone currently invests "around £10bn to the UK economy each year, supporting 31,000 jobs at present - but this is set to rise to 97,000 jobs by 2030, supported by £17bn a year of investment".191
228. As a first mover, the UK has specific advantages and export opportunities in offshore wind. The UK is home to hundreds of supply chain companies in offshore wind and is already exporting offshore wind goods. The UK has particular expertise in the second- largest sub-sector market, operations and maintenance. The value of those exports could increase fivefold to £2.6 billion by 2030 as global markets are expected to increase rapidly to £30bn per year and with potentially 380GW by 2030.192
229. The UK is also a first mover on floating offshore and tidal stream technologies, and further investments in those technologies could create distinct advantages. The ambition of 5GW floating offshore by 2030, as expressed in the British Energy Security Strategy, could deliver a GVA of £43.6 billion and 29,000 jobs in the UK, while tidal stream (which currently uses on average 80% of UK contentxi) could support 14,500 jobs by 2040.193
230. We will need action to scale up across all renewable technologies to ensure a diversified energy mix. The Review heard that more can still be done to increase local content in the jobs and reduce dependency on technology imports. In an international comparison, the UK is also lagging in the deployment of other established, low-cost technologies such as onshore wind and solar.
231. Stakeholders told the Review that there are still further opportunities for established, low-cost technologies, such as onshore wind and solar (which stakeholders believe could achieve as much as 30GW by 2030 and 70GW by 2035 respectively). The Review heard that
"Introducing new policy measures, such as, allowing solar panels and onshore wind to be more readily approved are key for quicker decarbonisation of the grid." - UK Corporate Leaders Group194
232. Several argued for a specific onshore wind target, alongside government ambitions set out for offshore wind and solar:
"Building the new onshore wind farms needed to meet 30GW by 2030 would support 27,000 high value jobs across development, supply chain and operations activity." - RenewableUK.195
233. Similarly, stakeholders highlighted the importance of technologies such as hydro or biomass combined with carbon capture and storage (CCS), which could help balance the grid and provide wider benefits such as energy storage and negative emissions, respectively. Stakeholders also raised opportunities related to technologies that are not widely deployed to date, such as geothermal or tidal range.
234. Industry has made clear commitments to further investments in the renewable sector and have many projects are in the pipeline. However, projects are slowed down by administrative, infrastructure and supply chain constraints that put the Government's 2035 ambitions at risk. Tackling this requires a root and branch rethinking of the nation's future energy requirements, based mainly on the transition to an electricity-only power supply, and what that will mean if we are to guarantee that the lights stay on in a more electricity-dependent society. It is clear that renewable and clean power provide more than enough opportunity to meet the needs that gas and fossil fuels have done in our power supply; it is essential for public confidence that this can be demonstrated clearly and consistently along the net zero transition pathway.
235. This Review sets out a range of areas for action to help deliver further faster on our renewable ambitions, including catalysing action through missions on onshore wind and solar. Further detail on these missions is at the end of this section. Alongside the implementation of ambitious policies for offshore wind, these missions will enable a renewables revolution with wider economic benefits in the short-term.
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xi This term relates to UK contributions to the manufacturing of key technology parts, installation, commissioning as well as operation and maintenance services deployed at a site.