Renewable energy investing: who is paying for the green revolution?

Investors in renewables have not been rewarded, says Bruce Packard. Will they fund the government’s plans?

Drone view of a wind farm. Multiple wind turbines
(Image credit: Getty Images)

The government has promised to make Britain into a “clean energy superpower” by 2030. The UK’s share of electricity generation from renewables currently stands at 46%, according to the government’s own statistics, and the pledge calls for at least 95% to come from low-carbon sources. Getting there will involve doubling onshore wind to 35GW, tripling solar power to 50GW and quadrupling offshore wind to 55GW.

This will also require significant investment in storage and distribution. Last year National Grid, the network operator, raised £6.8 billion in a rights issue as part of plans to invest £23 billion over the next four years upgrading its transmission network to support the transition to renewables. Meanwhile, the 138-page Action Plan that UK Department for Energy Security and Net Zero (DESNZ) published in December says 29GW-35GW of batteries will be required by 2030, compared with less than 5GW installed today.

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Bruce Packard
Contributor

Bruce is a self-invested, low-frequency, buy-and-hold investor focused on quality. A former equity analyst, specialising in UK banks, Bruce now writes for MoneyWeek and Sharepad. He also does his own investing, and enjoy beach volleyball in my spare time. Bruce co-hosts the Investors' Roundtable Podcast with Roland Head, Mark Simpson and Maynard Paton.