To mark the 55th anniversary of Earth Day next week, and the call for everyone around the globe to unite behind renewable energy, and to triple the global generation of clean electricity by 2030, Gravis CEO Philip Kent outlines the UK’s renewable energy success stories and the urgent investments needed to meet future targets.
Kent underscores that the UK’s renewable energy sector has made significant strides, but to ensure the UK meets its ambitious decarbonisation targets, a five-fold increase in investment in environmental infrastructure is required. This amounts to £50 billion per year between now and 2050, with key targets set for 2030 and 2050.
The path to a decarbonisation
“The UK’s renewable energy sector has made impressive progress over the last 15 years. In 2010, the country’s energy mix primarily relied on coal and gas fossil fuelled generation,” said Kent. “Today, renewables account for over 50% of the UK’s electricity generation, and Gravis has often been at the forefront of supporting these developments as an early investor.”
Among the UK’s most notable achievements has been the growth of offshore wind energy, supported by government policies such as the Contract for Difference regime. “The offshore wind sector is poised for continued growth, with the UK targeting 60GW of offshore wind capacity by 2030, up from 15GW today,” said Kent. “Onshore wind and solar PV will also contribute to the UK’s future energy mix, with 50GW of solar PV planned by 2030.”
A transformational shift in energy demand
However, while wind and solar have led the charge, other technologies must be scaled up to meet the UK’s decarbonisation targets.
Looking to 2050, the UK will face an even more ambitious set of energy goals. To meet net-zero emissions, the country will need to decarbonise not just its electricity grid, but also heat and transport sectors. Kent highlights that electricity demand will likely double by 2050, driven by the electrification of transport and heating, the rise of digitalisation and associated increases in demand for energy to power data centres.
Key targets for 2050 include:
- 30-40TWh of biomethane production
- 12-28 million heat pumps installed (up from just 215,000 today)
- 240-500TWh of low-carbon hydrogen
· 50MtCO2e in Carbon Capture and Storage (CCS)
These goals will require significant investment in technology, infrastructure, and human capital. “The challenge is not just to meet demand, but to ensure that the technologies required to support decarbonisation are available at the scale needed,” said Kent.
The investment opportunity
“The direction of travel has been set, and the UK is on the right path,” said Kent. “The next phase of growth will require a dramatic increase in investment, with a £50bn annual investment gap until 2050. This is a unique opportunity for those willing to invest in clean energy technologies and infrastructure.”
While the task is daunting, the UK has already shown that rapid progress is possible. “Gravis has a track record of being an early investor in this sector, supporting a diverse portfolio of renewable energy projects, including solar, anaerobic digestion, and waste-to-energy plants,” said Kent.
“The UK may not meet all of its targets on time, but the momentum is unmistakable,” Kent added. “The UK’s renewable energy transformation is underway, and it offers an exciting investment opportunity for those ready to take part in the next phase of growth.”
By Philip Kent, Chief Executive Officer at Gravis.
