New analysis has highlighted a significant funding gap in the UK’s efforts to build the necessary energy infrastructure to achieve a net zero power system.
To reach this ambitious goal, an investment of nearly £180 billion is required by 2030.
However, the combination of public and private investment already committed is only expected to total slightly over £150 billion.
This leaves a substantial funding gap, equivalent to £3 billion annually until 2030, according to a report by the Investment Delivery Forum.
Analysts observe that the sectors with inadequate levels of both public and private investments comprise energy generation infrastructure, grid reinforcement, public electric vehicle (EV) charging infrastructure and hydrogen distribution networks.
Commenting on the research, sub-chair of the Investment Delivery Forum and Deputy President of the ABI Clare Bousfield said: “Our research shows there is a mammoth infrastructure investment challenge facing the UK.
“The ongoing ‘Solvency UK’ reforms are crucial in helping us to channel around £100 billion into green and good infrastructure and narrow this investment gap.”
