Renewable Energy Leading the way
The world's energy crisis has necessitated a radical shift among policy makers and industry participants alike. Increased awareness surrounding the effects of climate change has driven an aggressive decarbonising strategy, spearheaded by the Renewable Energy industry. The United Kingdom currently supplies 8.6% of its total electricity from renewable sources, representing a significant increase from 1.5% in 2006. This has resulted from both government and industry, which have realised the importance of embracing a low-carbon future and the economic opportunities that lie therein.
The United Kingdom's Renewables Obligation Plan, instituted in 2002, set out clear objectives that aimed to generate 15% of the country's energy from renewable sources by 2020. This prompted a wave of investment in renewable technologies, particularly wind energy, and led to dramatic increases in installed capacity and overall industry revenue. The United Kingdom's abundance of natural resources boded well for industry operators, as the economic benefits of renewable generation were coming to fruition. This led to significant growth in employment opportunities, as evidenced by the 15.8% per annum increase over the past five years. The dismal economic climate did little to temper consumer uptake of renewable energy, further incentivised through the feed-in-tariffs plan that rewarded households for generating their own renewable electricity. In the five years through 2010-11, industry revenue is expected to increase by 8.5% per annum to total £4.3 billion. During the current year, revenue is forecast to rise by 6.7%.
The future prospects of the industry, while bright, are inextricably linked to the level of government support and the willingness of consumers to wear higher costs. It is clear that funding and investment are critical to the industry's future if the United Kingdom is to achieve its 2020 target and not continue to lag behind its EU counterparts. Issues such as grid connectivity, skilled labour shortages and other process-oriented shortcomings must be resolved to ensure a profitable and smooth transition to renewable energy. There is enormous scope for job creation within the industry that will benefit the general health of the economy and the industry itself. Support from businesses and households is equally important to ensure the benefits that lie from a prosperous renewable sector are realised. While wind power will continue to lead the way, other sources such as hydropower, biomass and tidal energy also present strong opportunities for growth. Prioritising access to renewable energy can advance social and economic progress in the long term, as it has the ability to strike the elusive balance between profitability and sustainability. In the five years through 2015-16, industry revenue is expected to increase by 6.5% per annum to total £5.9 billion.
The United Kingdom's Renewables Obligation Plan, instituted in 2002, set out clear objectives that aimed to generate 15% of the country's energy from renewable sources by 2020. This prompted a wave of investment in renewable technologies, particularly wind energy, and led to dramatic increases in installed capacity and overall industry revenue. The United Kingdom's abundance of natural resources boded well for industry operators, as the economic benefits of renewable generation were coming to fruition. This led to significant growth in employment opportunities, as evidenced by the 15.8% per annum increase over the past five years. The dismal economic climate did little to temper consumer uptake of renewable energy, further incentivised through the feed-in-tariffs plan that rewarded households for generating their own renewable electricity. In the five years through 2010-11, industry revenue is expected to increase by 8.5% per annum to total £4.3 billion. During the current year, revenue is forecast to rise by 6.7%.
The future prospects of the industry, while bright, are inextricably linked to the level of government support and the willingness of consumers to wear higher costs. It is clear that funding and investment are critical to the industry's future if the United Kingdom is to achieve its 2020 target and not continue to lag behind its EU counterparts. Issues such as grid connectivity, skilled labour shortages and other process-oriented shortcomings must be resolved to ensure a profitable and smooth transition to renewable energy. There is enormous scope for job creation within the industry that will benefit the general health of the economy and the industry itself. Support from businesses and households is equally important to ensure the benefits that lie from a prosperous renewable sector are realised. While wind power will continue to lead the way, other sources such as hydropower, biomass and tidal energy also present strong opportunities for growth. Prioritising access to renewable energy can advance social and economic progress in the long term, as it has the ability to strike the elusive balance between profitability and sustainability. In the five years through 2015-16, industry revenue is expected to increase by 6.5% per annum to total £5.9 billion.
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