COMMENT Earlier this month, the government announced that the UK had become the first major economy to halve its emissions, having cut them by 50% between 1990 and 2022. This compares with a 23% reduction in France and no change in the US between 1990 and 2021. According to the announcement, renewables now contribute more than 40% to the UK’s electricity – a stark increase from 7% in 2010.
This milestone highlights the pivotal role of renewables in leading the charge towards a cleaner, greener future and it’s evident that the UK is setting the pace globally for cleaner energy adoption. This progress is largely attributed to the significant shift from coal to renewables in energy generation, with coal’s contribution dropping from nearly 40% in 2012 to zero later this year.
While acknowledging this achievement is important, it’s equally imperative to recognise the challenges faced on the path toward achieving net zero emissions. Collaboration across various sectors, including the public and private sectors, governments, real estate, utilities and investors, is essential for advancing the UK’s green agenda.
Energy trilemma
While escalating energy costs have bolstered the viability of renewables, the industry requires accelerated growth to meet the demands of the energy trilemma, which emphasises the importance of striking a balance among energy reliability, affordability and sustainability.
The transition to a net zero economy necessitates a significant increase in energy demand over the next three decades, primarily driven by the electrification of heat and transport. Meeting this demand requires robust planning and investment in infrastructure for low-carbon electricity generation and energy storage systems on national, local, and site-specific levels. Strategic site selection, evaluation and acquisition, coupled with comprehensive assessments of grid and utility availability are integral steps in this process.
The government also recently published the National Infrastructure and Construction Pipeline, which sets out planned and projected investment in UK infrastructure. Planned investment between 2023/24 and 2024/25 in major infrastructure and construction projects stands at £164bn. In the next 10 years, the government estimates a planned and projected £700bn-£775bn overall investment. This significant spend should help to drive us towards a fully decarbonised grid.
Looming pressure
Looking ahead, while immediate pressures loom, the increased deployment of renewables and low-carbon technologies promise long term economic benefits. As the energy sector transitions, we remain hopeful that a stable marketplace will emerge, fostering sustainable growth and innovation. By utilising renewables and embracing collaborative efforts, the UK can continue its journey towards a brighter, cleaner future.
So while the UK’s achievement is commendable, it serves as a reminder of the work that lies ahead. With innovation, investment and collective action, we can overcome the challenges and realise our ambitions for a greener, more sustainable future.
Nick Green is head of energy and infrastructure at Savills
Image © Savills
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