The UK’s potential as a world leader in renewable energy has been highlighted by business leaders as a driving factor in providing the country with a successful economy for the future.
A new survey, commissioned by InvestinCornwall, the county’s newly launched inward investment service, shows UK business leaders believe the success of Britain’s growing renewable energy sector is more important than both the financial and retail sectors for the UK’s long-term economic success.
However, concerns over costs and political commitment to the sector need to be addressed.
Commenting on the findings, Lucy Hunt, manager for InvestinCornwall, said: “Despite rapid growth the renewable sector has stood in the shadow of other industries for many years. But this report marks a major change in attitudes to the sector and demonstrates its importance.
“The UK’s natural resources, heritage, and skills base make it ideal for renewable energy businesses, particularly rural locations such as Cornwall which is now home to some of the world’s leading green energy firms.”
That sentiment was echoed by a third (34 per cent) of the business leaders surveyed who also said they thought Britain has a significant role to play in the development of a global low carbon economy and has the potential to lead on this contemporary issue.
However, to achieve this, the majority of respondents (67 per cent) called on the new Government to increase investment levels in renewable energy.
As well as surveying business leaders, InvestinCornwall also conducted a snapshot survey of venture capitalists, bankers and other investors working in the renewable energy sector to gauge their opinions on investment levels in the sector.
The results showed that more than two-thirds (69 per cent) expected investment levels in the sector to increase a little or substantially over the coming six months, while only 13 per cent anticipate a fall in investment.
Business support for renewable energy is not just talk. When asked about their own use of renewable energy, almost half (48 per cent) use, or are considering using, one or more forms of renewable energy, with 22 per cent of respondents favouring solar power.
In addition, half (50 per cent) use, or plan to use, energy efficiency measures to reduce their reliance on traditional power sources.
The biggest perceived barrier preventing more organisations using renewable energy to generate power is a financial one. Three quarters (76 per cent) of respondents highlighted cost as the main issue, while just under two-fifths (38 per cent) cited lack of incentives.
Despite the enthusiasm for renewable energy, there remains a minority of businesses who are still to be convinced of the seriousness of the sector and the concept of a low carbon economy. For example, the report showed that just over a fifth (22 per cent) felt the low carbon economy is not taken seriously but just seen as a tax raising opportunity, while under a fifth (19 per cent) felt the term ‘low carbon economy’ itself was just another business buzz phrase.
Furthermore, businesses have been very sceptical about all the talk and promises on renewable energy and green jobs during the general election. Overwhelmingly, more than two-thirds (69 per cent) felt that politicians in the main parties only use the concept of renewable energy for political gain.
Hunt concluded: “With a groundswell of support from the business and investment community we hope the new Government will seize the opportunity and follow Cornwall’s lead in backing the renewable energy sector. We all need to engage with businesses and the general public to turn the political rhetoric surrounding Britain’s low carbon economy into a reality.”
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