UK energy sector assets
Analysis of key UK energy sector assets
Government support for renewable energy development derives from international concern that increased greenhouse gas emissions, notably carbon dioxide (CO2), are causing global warming and thus climate change. The UK, in keeping with the EU’s target, is to reduce greenhouse gas emissions and generate 20% of its energy from renewable sources by 2020 with an aspiration of increasing this to 60% by 2050.
Roger Tym & Partners was commissioned by Scottish Enterprise in 2009 to provide a high level update on the scale, segmentation and growth prospects of the UK renewable energy sector with references to key policy drivers and market trends. The study involved a competitive assessment of leading UK regions, identifying key assets and areas of specialism. We also identified potential constraints to development and highlighted issues such as:
- difficulties in obtaining grid connections
- slow planning and other consents process
- capacity issues in key sites and industrial property
- upward cost pressures in the supply chain
- qualified labour and skills shortages
- gaps in financial support.
Many national and international strategies aim to create new economic growth potential in the supply chain of technology companies and to encourage centres of excellence for research. Business growth risks being constrained as a result of energy issues. These may include:
- reducing energy costs and improving profitability through the use of renewables
- security of energy supply, reducing risks of energy failures and ‘outages’
- business opportunities for UK companies in the technological development, construction, and operation / maintenance
Our study was used to support Scottish Enterprise's case for greater understanding of business opportunities of the energy sector and in particular the growth areas of renewables.
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