At least £100bn needed in offshore energy for UK carbon neutrality

The organization representing the interests of the British energy sector publishes these figures in a report which calls for an attractive operating environment, in the midst of debate on an energy bill in Westminster.

Offshore Energy UK (OEUK) estimates that a total of £200 billion could be injected into the offshore energy sector if the government puts the right regulatory and tax framework in place.

The industry association argues that "the global race to invest in energy is accelerating", citing massive US subsidies for "green" infrastructure, as well as "ambitious plans in Asia and the European Union" .

She therefore also asks London to boost public aid: "the United Kingdom must not find itself lagging behind", she says, arguing that the country suffers from "underinvestment in energy produced on the National territory".

The OEUK also recalls that the Russian invasion of Ukraine resulted in a surge in inflation and energy costs in many countries, and in tensions on supply and therefore energy security. from the country.

David Whitehouse, director general of OEUK, notes that the UK has positioned itself as "one of the leading countries in the world for offshore wind, with more than 90 gigawatts of capacity, but only a third is approved or operational".

“We must simplify the regulatory approval procedures” of projects, he insists.

A study by another industry body, Energy UK, warned last month that the UK, at the forefront of offshore wind a few years ago, was on track to be overtaken by many countries in the production of "green" electricity, notably France, Japan, Germany, the United States, China and India.

The study attributes this slowdown to a lack of investment compared in particular to the United States, which passed the "Inflation Reduction Act" a year ago, promising 370 billion dollars injected into the energy transition, while the European Union has strengthened its own tax reduction measures for investments in zero carbon technologies.

London also announced on Tuesday the relaxation of rules governing the installation of onshore wind turbines and which were denounced as a de facto ban on new installations.