Posted on: 26/01/2016
Investment in renewable energy projects could “drop off a cliff” before the end of the decade, according to Bloomberg New Energy Finance.
Analysts carried out research into the effects of the UK Government’s subsidy cuts on behalf of The Independent newspaper.
Bloomberg estimates that the UK will lose at least 1GW of renewable energy generation capacity over the next five years.
Such a loss would mean 660,000 fewer homes would be powered by renewables.
‘Kicking off the ladder too soon’
David Hostert, an analyst at Bloomberg New Energy Finance, said: “The Government is kicking the onshore wind industry off the ladder too soon.
“Without some form of change in policy support, we could see investment drop off a cliff after 2019.”
Analysts warned the renewables industry would “wither” while infrastructure would “collapse to almost nothing because of a lack of investment”.
Bloomberg said investment in onshore wind farms had doubled to a record £2.8 billion during 2015.
When offshore wind figures were included, investment reached a record high of £11bn last year.
Solar investment during 2015 dropped to £3.5bn from a record £5bn during 2014 due to cuts to support for large-scale projects.
Bloomberg noted that EDF and Npower had already cancelled onshore wind projects and predicted further cancellations would follow.
The firm’s research was based on the prospects of developers of onshore wind farms that have received planning permission being able to afford to build them.
> Read The Independent's article