Although the UK has sets ambitious clean energy targets, the country risks falling behind the US and EU in attracting the required investment, warn two of the country’s energy trade organizations.

Ahead of the chancellor’s spring budget next month, Energy UK And Renewable UK published two separate ones reportscalling on the government to introduce measures and rule changes that will enable the UK to attract vital private investment in renewables.

“The renewable energy sector is facing a perfect storm this year.

This is reported by Energy UK reportinvestment in low-carbon power generation has “deteriorated significantly” in recent months due to high inflation, rising interest rates, supply chain issues, policy uncertainty and “ill-designed” unexpected taxes which currently “promote oil and gas exploration”.

The trade body estimates that an additional investment of £500bn would be required between now and 2050 to meet the UK’s Net Zero targets. But without government action, it expects an investment loss of £62 billion by 2030. This would translate into a 54 GW shortfall in potential wind and solar capacity – enough electricity to power every home in the UK.

“The UK is increasingly in danger of undermining its own ambitions and defaulting on its commitments,” said Emma Pinchbeck, CEO of Energy UK. said. “In many ways, the UK has led the way in the clean energy transition – witnessed by our leading offshore wind industry – but we risk squandering this position and driving the investment we need elsewhere.”

Intense global competition for investment, skills and supply chains was also mentioned by Ana Musat, Executive Director of Policy at Renewable UK, who marked that “the US and EU are in a race to provide incentives to clean energy investors.”

Both industry associations are calling for measures such as the introduction of more attractive regulations, faster project planning, more sustainable prices for renewable electricity and new fiscal policies, such as windfall tax reform and associated tax reductions.

“We are currently at a pivotal point with other countries actively trying to attract the same companies and investors and it would be unforgivably complacent to think we don’t have to do the same,” Pinchbeck noted. “This is a unique opportunity and if we don’t seize it now, we will not only miss out on cheaper, cleaner energy, but also miss out on the huge boost to our economy that such investments will provide in terms of growth, jobs and other benefits.”