REA: Renewables rise, policy changes detrimental to growth

The Renewable Energy Association (REA) has released its annual statistical publication which has revealed record employment levels in 2015, but warned of the future impact of the UK government’s numerous recent policy interventions.

The report ‘REView 2016’, produced in association with Innovas and KPMG, is the annual publication on employment, investment, and deployment trends in the UK’s renewable energy industry.

It details record-setting employment levels in the renewables industry in 2015, and record overall levels of investment and energy consumption.

The report highlights that the repeated policy interventions of the Government are harming the UK’s position as a global leader, slowing growth rates and increasing the likelihood that legally binding 2020 renewable energy targets (RED targets for renewable power, heat and transport) will not be achieved.

When it comes to UK’s wave and tidal energy sector, the report found the sector turnover for 2014-2015 was £109 million – a slight increase from 2013-2014 £103 million. The number of people employed across the UK supply chain rose from 635 in 2014, to 660 in 2015.

The number of UK companies across the supply chain stands at 40, it is stated in the report.

Nina Skorupska, Chief Executive of the REA, said: “2015 was another record year for British renewables. Employment, investment, and deployment increased, while costs fell and the industry continued to mature. It was yet another year where the renewables industry outperformed UK growth rates.

“The industry was blindsided this year with over a dozen sudden and severe policy changes, which we expect will be reflected in next year’s report. While many businesses have been left reeling and deployment has begun to slow, as an industry we will persevere, we will innovate, and we will continue to grow.”

Some of the key findings of REView 2016 include:

• The total sector market value 2014/15 (for renewable power, heat, and transport) was £15,913 million. This is an increase of £982 million, which represents a growth rate of 6.6%, slightly higher than the 6.1% seen from 2012/13 to 2013/14. Growth of the rest of the UK economy was around 2.5%
• There were 116,788 employed in the sector in 2014/15, an overall increase of 4,760 people
• Renewable energy supplied the UK with 22.3% of its power in 2015, 4.6% of its heat in 2014 and 3.2% of its transport fuels in 2015
• Policy changes over the last twelve months are likely to have a negative impact on growth rates in 2016
• The Government needs new policies in order to meet the 2020 renewable energy targets, particularly in heat and transport.