UK has a £25bn energy infrastructure build funding gap
A new report by the Investment Delivery Forum has highlighted a £3 billion annual funding gap for the UK to hit its ambitious Net Zero infrastructure build targets.
To reach this ambitious goal, an investment of nearly £180 billion is required by 2030.
With a combination of public and private investment of just over £150 billion already committed this leaves a substantial funding gap, equivalent to £3 billion annually until 2030
The analysts observe that the sectors with inadequate levels of both public and private investments comprise energy generation infrastructure, grid reinforcement, public electric vehicle (EV) charging infrastructure and hydrogen distribution networks.
Commenting on the research, sub-chair of the Investment Delivery Forum and Deputy President of the ABI Clare Bousfield said: “Our research shows there is a mammoth infrastructure investment challenge facing the UK.
“The ongoing ‘Solvency UK’ reforms are crucial in helping us to channel around £100 billion into green and good infrastructure and narrow this investment gap.”
This investment helps tick two very important boxes, firstly the UK hitting it’s net zero target by 2050 but as important to this is the creation of a sustainable and secure energy infrastructure that allows the UK to become a lot more self sufficient by generating its own electricity. This will mean not having to rely on very expensive gas imports that are open to huge price spikes witnessed during the energy price crisis.
Until the point of self sustainability the UK will experience high levels of price volatility for a number of years to come.
It’s for this reason that we produce a weekly bit-size view on the price changes that you can track. Given this information, you can make a more informed decision on when to agree to your next contract – subscribe and receive the latest bulletin delivered to your inbox every Monday morning.