Posted on: 21/06/2016
The biggest challenge facing the energy sector is a lack of continuity in government policy, according to a new survey.
The annual Energy Barometer Report carried out by the Energy Institute found that, despite the euphoria surrounding the Paris climate change agreement, professionals working in the energy sector are still sceptical about signatories’ abilities to deliver on their promises.
Some 70% of respondents fear the Paris agreement will not be enough to keep temperature rises to below 2C.
Carbon capture and storage, renewable energy and nuclear power are all identified as high-risk investment propositions due to shifts in government policies.
‘Lack of continuity’
Jim Skea, President of the Energy Institute, said: “The EI’s Energy Barometer 2016 report shows that the single biggest wish for people working in UK energy is a stable energy policy to help industry and financiers decide where to invest profitably and, more crucially, to allow for long-term planning.
“Renewable energy and capturing carbon – key to implementing the Paris climate agreement – are seen to have been particularly badly hit by policy changes over the last year.”
Vice President Malcolm Brinded added: “This year’s survey reflects concern that lack of policy continuity leads to under-investment in both UK energy technology and infrastructure.
“This is considered to be the largest barrier to innovation and the delivery of the low carbon energy system needed to meet future demand and emissions targets, securely and affordably.”
> Download the results of the survey