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Ernst & Young estimates that the UK energy supply industry will have to invest over £230bn in new infrastructure by 2025 to ensure the UK’s future security of supply and that current climate change and renewable targets are met. This level of investment is equivalent to doubling the value of the UK’s total energy supply asset base.
The study, Securing the UK’s energy future – meeting the financing challenge published 24 Feb 2009, is an update on its 2008 Costing the Earth study, which examined the cost implications for UK energy customers of meeting carbon emissions and renewable energy targets by 2020.
This latest study updates the increased development costs for new energy projects over an extended time frame to 2025 to capture the recently announced new nuclear build programme and the need to improve the UK’s resilience to security of supply risks.
Key role for energy efficiency
The study also outlines the need to deploy the £234bn as cost effectively as possible, and reinforces the need to focus industry and government on the importance of demand reduction and energy efficiency.
“As part of a package of measures to maintain security of supply, supporting and educating consumers on ways to improve energy efficiency will play a pivotal role. Investment in energy efficiency will play an important role in achieving the industry’s objectives,” says Steve Jennings, partner and head of Ernst & Young’s power and utilities team. |
