The urgent need for up to £330bn of investment in the UK’s energy infrastructure to ensure a secure energy supply, meet carbon emissions reduction targets and protect the UK economy by 2030, is highlighted in a new report from The London School of Economics and Political Science.
The npower Future Report – ‘Energy and the economy: The 2030 outlook for UK businesses’ – reflects upon the need for a balanced focus on economic growth and investment in the energy infrastructure to deliver a low carbon and strong UK economy. It also calls on businesses to act now to ensure they are protected for the future.
Three potential scenarios for the 2030 energy and economic landscape and the implications for UK business are examined in the report; from continued austerity to a sidelining of carbon emissions reduction targets in favour of cheaper energy sources to power the UK and businesses. The report shows how a number of factors will shape what 2030 will mean for UK plc.
Professor Samuel Fankhauser, author of the npower Future Report, Co-Director of the Grantham Institute on Climate Change and the Environment at The London School of Economics and Political Science and a member of the Committee on Climate Change, commented: “This report shows how fragile and delicate the equilibrium of factors is for protecting the future of the UK energy industry. A slight change of emphasis in policy, a weakening economic picture or a preference for cheaper energy sources over low carbon energy generation could result in very different operating environments for UK businesses. It is crucial UK businesses take action now to overcome the potential challenges they may face.”
Volker Beckers, CEO of RWE npower, commented: “£200bn by 2020 has been the long-held figure recognised as being key to a secure energy future. However, this report shows that almost the same amount again is needed just 10 years later to provide the right environment to balance cost, carbon and continuity of supply. It is therefore crucial that the UK energy industry, Government and businesses work collaboratively to ensure this level of investment is secured and foundations are set for economic and environmental prosperity by 2030.”