Energy sector growth despite uncertainties
4 Nov 2013
The UK energy sector has contributed £102bn to the UK economy since 2012, despite many power plant projects awaiting the green light, a report claims.
The report, commissioned by trade association EnergyUK and published by Ernst and Young, detailed the stability of the UK energy sector amid concerns that government policy decisions are holding back further growth and investment.
Today, the industry is seeking an honest and open debate on energy
EnergyUK CEO Angela Knight CBE
The report said: “There is also a pipeline of projects ready to build enough conventional power stations to replace ageing stations and power 25–30m homes (27 GW1) over the next decade.”
But added: “Many of these projects are awaiting Government policy decisions, such as the Electricity Market Reform packages, before construction.”
However, the report also claimed that the energy sector is delivering an “energy revolution” through increased lower carbon generation and efficiency and technology the consumer level.
As domestic energy use fell by 12% between 2007 and 2012, the report suggests that only with sector and government focus can this positive growth be maintained until 2020 and beyond.
EnergyUK chief executive officer Angela Knight CBE said: “Today, the [energy] industry is seeking an honest and open debate on energy. The debate will improve decision making and establish the long-term certainty needed by investors.”
However, although directly contributing £24bn to the economy 2012, the report stated that growing awareness of major energy issues, coupled with issues such as shale gas and novel technologies have meant that future investments are not certain.
